Economic Analysis Case Studies of Battery Energy Storage with SAM
Abstract
Interest in energy storage has continued to increase as states like California have introduced mandates and subsidies to spur adoption. This energy storage includes customer sited behind-the-meter storage coupled with photovoltaics (PV). This paper presents case study results from California and Tennessee, which were performed to assess the economic benefit of customer-installed systems. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PVmore »
- Authors:
-
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Publication Date:
- Research Org.:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Org.:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
- OSTI Identifier:
- 1226239
- Report Number(s):
- NREL/TP-6A20-64987
- DOE Contract Number:
- AC36-08GO28308
- Resource Type:
- Technical Report
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 14 SOLAR ENERGY; 29 ENERGY PLANNING, POLICY, AND ECONOMY; SAM; battery; economic analysis
Citation Formats
DiOrio, Nicholas, Dobos, Aron, and Janzou, Steven. Economic Analysis Case Studies of Battery Energy Storage with SAM. United States: N. p., 2015.
Web. doi:10.2172/1226239.
DiOrio, Nicholas, Dobos, Aron, & Janzou, Steven. Economic Analysis Case Studies of Battery Energy Storage with SAM. United States. https://doi.org/10.2172/1226239
DiOrio, Nicholas, Dobos, Aron, and Janzou, Steven. 2015.
"Economic Analysis Case Studies of Battery Energy Storage with SAM". United States. https://doi.org/10.2172/1226239. https://www.osti.gov/servlets/purl/1226239.
@article{osti_1226239,
title = {Economic Analysis Case Studies of Battery Energy Storage with SAM},
author = {DiOrio, Nicholas and Dobos, Aron and Janzou, Steven},
abstractNote = {Interest in energy storage has continued to increase as states like California have introduced mandates and subsidies to spur adoption. This energy storage includes customer sited behind-the-meter storage coupled with photovoltaics (PV). This paper presents case study results from California and Tennessee, which were performed to assess the economic benefit of customer-installed systems. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued. Different dispatch strategies, including manual scheduling and automated peak-shaving were explored to determine ideal ways to use the storage system to increase the system value and mitigate demand charges. Incentives, complex electric tariffs, and site specific load and PV data were used to perform detailed analysis. The analysis was performed using the free, publically available System Advisor Model (SAM) tool. We find that installation of photovoltaics with a lithium-ion battery system priced at $300/kWh in Los Angeles under a high demand charge utility rate structure and dispatched using perfect day-ahead forecasting yields a positive net-present value, while all other scenarios cost the customer more than the savings accrued.},
doi = {10.2172/1226239},
url = {https://www.osti.gov/biblio/1226239},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Nov 01 00:00:00 EDT 2015},
month = {Sun Nov 01 00:00:00 EDT 2015}
}