Energy storage capital operation

How are energy storage capital costs calculated?

The capital costs of building each energy storage technology are annualized using a capital charge rate 39. This annualization makes the capital costs comparable to the power system operating costs, which are modeled over a single-year period, in the optimization model.

How can we estimate the future cost of power and storage technologies?

With data for current cost, current capacity, and historic learning rates, and with an estimate of future capacity, one can estimate the future cost. Current capital costs for power and storage technologies, learning rates, installed capacity, and future cost estimates are summarized in Tables S2–S24.

Which energy storage technologies are included in the 2020 cost and performance assessment?

The 2020 Cost and Performance Assessment provided installed costs for six energy storage technologies: lithium-ion (Li-ion) batteries, lead-acid batteries, vanadium redox flow batteries, pumped storage hydro, compressed-air energy storage, and hydrogen energy storage.

How can energy storage technology improve economic performance?

To achieve superior economic performance in monthly or seasonal energy storage scenarios, energy storage technology must overcome its current high application cost. While the technology has shown promise, it requires significant technological breakthroughs or innovative application modes to become economically viable in the near future.

How are capital cost and energy output adjusted?

The capital cost and energy output are adjusted for the time value of money using the discount rate. The annual cost encompasses both the O&M cost and variable cost. The O&M cost is crucial for reinvesting in storage components where necessary, while the variable cost pertains to purchasing electricity and other consumption.

How does the energy storage model work?

The model optimizes the power and energy capacities of the energy storage technology in question and power system operations, including renewable curtailment and the operation of generators and energy storage.