EPRI tool assesses value and cost effectiveness of energy storage
June 20, 2013 | By
Barbara Vergetis Lundin
The Electric Power Research Institute (EPRI) has developed an analytical tool that quantifies the value and assesses the cost effectiveness of energy storage, enabling utilities, regulators and other stakeholders to determine the economics of energy storage and better assess its viability and role in their systems. The effective deployment of energy storage technology can potentially improve grid reliability and resiliency, reduce frequency or size of rate increases, and support the effective grid integration of wind and solar energy. "The Energy Storage Valuation Tool (ESVT) can play a valuable role in clarifying the value and the variables of energy storage in the grid," said Haresh Kamath, program manager for energy storage research at EPRI. "It can inform business plans, regulatory proceedings and public discourse related to storage, and allows users to see the underlying calculations of the model." The storage valuation tool provides a step-by-step interface to set up and run a storage value analysis in minutes, using pre-loaded or customized input data such as load and price data, key financial assumptions such as debt, equity, and taxes, and the type of storage technology such as batteries, compressed air energy storage, and pumped hydro. In an analysis of the value of energy storage, the tool was demonstrated in 30 scenarios identified by the California Public Utilities Commission (CPUC), including demos highlighting storage applications, technologies, product configurations, market conditions, and grid locations, to inform regulators of the potential value of energy storage technologies in different applications and equip utilities to determine the energy storage products and grid configurations that will work most effectively in their grids and regulatory frameworks. For more: Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com |