NREL Vitality Storage System Price Benchmark

Visitor submit by Roger Caiazza

One of many greatest points with plans to switch fossil fuels with renewable power is intermittency. In some unspecified time in the future that may solely be addressed by power storage however monitoring down these prices is tough. I not too long ago discovered a not too long ago launched report from the Nationwide Renewable Vitality Lab (NREL): “2018 U.S. Utility-Scale Photovoltaics-Plus-Vitality Storage System Price Benchmark” that gives data that can be utilized to estimate the prices of the power storage choice.

Based on the NREL abstract, authors Fu and Margolis, together with fellow NREL researcher Timothy Remo, present NREL’s first value benchmarking of power storage and PV-plus-storage techniques. The summary for the report states:

“Market progress for utility-scale photovoltaic (PV) techniques has been speedy for a number of years. Immediately, with the fee reductions of power storage applied sciences, combining PV and power storage has turn into possible and useful, particularly for the areas which have solely PV standalone techniques and must shift the height load to satisfy electrical energy demand within the night. General, utility-scale PV plus power storage techniques can present dispatchable power and dependable capability. This examine particulars value elements, together with labor prices, materials prices, overhead, and allowing prices utilizing a system-level bottom-up value modeling method. We use this mannequin to benchmark PV-plus-storage set up system value and establish the fee distinction for AC- and DC-coupled techniques and period variation. Lastly, we assess the fee discount alternatives of co-locating PV techniques with power storage techniques with a view to point out the attainable financial impacts of the PV-plus-storage configuration and assist future analysis and growth (R&D) results within the context of U.S. power storage policymaking.”

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I used to be curious about the fee benchmark features of U.S. Li-ion standalone power storage techniques. NREL calculates that “For a standalone storage system, assuming a continuing battery value of $209 per kilowatt-hour (kWh), the put in system prices differ from $380/kWh for a four-hour battery system to $895/kWh for a 30-minute battery system.” I evaluated their information and supply value estimates for various durations beneath.

Desk three within the NREL doc, Detailed Price Breakdown for a 60-MW U.S. Li-ion Standalone Storage System with Durations of zero.5–Four Hours, gives the knowledge mandatory to increase their projections to totally different durations. I’ve included that desk beneath. For instance, NREL estimated the set up labor and expense value starting from zero.5 hours to Four hours. I match a linear regression mannequin to explain the connection between that and different prices and power storage period so I may prolong the fee estimates. I exploit Statgraphics Centurion software program from StatPoint Applied sciences, Inc. to do my statistical analyses as a result of it gives versatile plotting and regression instruments. Statgraphics permits the consumer to decide on one of the best relationship from 27 totally different linear regression equations. On this analysis in each occasion, the reciprocal-X mannequin (Y = a + b/X) statistic was your best option and each regression had an R-squared coefficient nice than 99.9% which signifies a powerful relationship and means that these estimates are adequate for this evaluation.

The final desk lists the estimate value breakdown $/kWh parameters for a 60-MW U.S. Li-ion standalone storage system. This evaluation estimates put in system prices differ from $343/kWh for an eight-hour battery system and $355/kWh for a six-hour battery system. The desk gives the parameters in order that the $/kWh worth for any period system will be calculated.

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I believe it’s best to place these numbers into some context relative to the grand plans proposed by Progressive politicians. On July three, 2019, New York State Governor Andrew Cuomo introduced “$55 million for power storage together with business and residential storage tasks on Lengthy Island. This program shall be launched with an preliminary rollout of practically $15 million in incentives from the New York State Vitality Analysis and Improvement Authority. Vitality storage tasks supported by this Lengthy Island initiative will advance progress towards reaching New York’s goal of three,000 megawatts of power storage deployed by 2030 – the equal to powering 40 p.c of New York’s properties.” In the event that they use Li-ion batteries and the period of the batteries is 4 hours the three,000 MW purpose alone will value $Four.56 billion at a charge of $380/kWh. In different phrases the $55 million will advance this purpose 1.2% or 36 MW and 145 MWh assuming Four-hour period batteries.

One ultimate observe, I’ve heard it stated elsewhere that power storage publicity is lax relating to data worth. The press launch isn’t any exception. Cuomo’s goal is three,000 MW and whereas realizing the facility goal is sweet what we actually must know is the power (MWh). I needed to assume Four-hour period as a result of I’ve by no means seen any worth given by Cuomo or his minions. The announcement does declare that three,000 MW can “energy 40% of New York’s properties”. The New York State Vitality and Analysis Improvement Authority Patterns and Tendencies doc notes that New York State gross sales of electrical energy to the residential sector totaled 50,831 GWh and whole gross sales have been 147,803 GWh in 2016. Based on the New York State Unbiased System Operator Load and Capability Information report for 2019 the state summer time functionality was 39,295 MW. If we assume that residential energy in MW is proportional to residential gross sales to whole gross sales then the residential functionality is 13,336 MW and the three,000 power storage goal is 22% of the facility offered to New York properties.

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Roger Caiazza blogs on New York power and environmental points at Pragmatic Environmentalist of New York. This represents his opinion and never the opinion of any of his earlier employers or some other firm he has been related to.

NREL Desk three. Detailed Price Breakdown for a 60-MW U.S. Li-ion Standalone Storage System with Durations of zero.5–Four Hours