Cost-benefit analysis of energy storage batteries

Can battery energy storage systems be included in electric power grid planning?

Abstract: This paper provides an overview of methods for including Battery Energy Storage Systems (BESS) into electric power grid planning. The general approach to grid planning is the same with and without BESS, but when BESS is included as an alternative, other methods are necessary, which adds significant complexity to the planning problem.

Are battery storage costs based on long-term planning models?

Battery storage costs have evolved rapidly over the past several years, necessitating an update to storage cost projections used in long-term planning models and other activities. This work documents the development of these projections, which are based on recent publications of storage costs.

What is a large-scale battery energy storage system (BESS)?

Large-scale Battery Energy Storage Systems (BESS) play a crucial role in the future of power system operations. The recent price decrease in stationary storage

Do projected cost reductions for battery storage vary over time?

The suite of publications demonstrates wide variation in projected cost reductions for battery storage over time. Figure ES-1 shows the suite of projected cost reductions (on a normalized basis) collected from the literature (shown in gray) as well as the low, mid, and high cost projections developed in this work (shown in black).

How can shared large-scale batteries improve centralized storage?

For centralized storage, shared large-scale batteries enhance collective self-consumption, relieve grid constraints for the local grid (with significant electric vehicles and renewable energy development in the future), and increase resilience or improve the reliability of power supply.

When will battery cost projections be updated?

In 2019, battery cost projections were updated based on publications that focused on utility-scale battery systems (Cole and Frazier 2019), with updates published in 2020 (Cole and Frazier 2020) and 2021 (Cole, Frazier, and Augustine 2021). There was no update published in 2022.