This presentation by Ben Kaun of the Energy Storage Program at the Electric Power Research Institute (EPRI) will discuss the challenges and opportunities of energy storage to support the electric grid.
In recent years, the interest in energy storage has increased as a key asset for a modern electric grid that is flexible, resilient, and environmentally responsible. Though historically the cost of energy storage has been prohibitively high for significant grid adoption, major investments in battery manufacturing and R&D for electronics and electric vehicles are continuously improving cost and performance. Additionally, the trend toward higher penetrations of wind and solar are increasing the grid’s need for flexibility. These macro-trends are closing the historical gap in energy storage cost-effectiveness, but standard valuation tools and approaches for utilities, regulators, and project developers are still under development.
To address the need for transparent, validated tools to understand the economics of energy storage, EPRI developed the Energy Storage Valuation Tool (ESVT). The ESVT was designed as user-friendly, customizable, transparent project valuation software to help determine the locations, services, and storage technology combinations that could make economic sense. EPRI recently used this tool to support the California Public Utility Commission (CPUC) in its regulatory proceeding to evaluate the cost-effectiveness of energy storage, which ultimately led to a target of 1.325GW of energy storage in California by 2020. California utilities have been instructed to procure the first 200MW of energy storage beginning in 2014.
This presentation will provide an overview of the EPRI ESVT and the analysis performed by EPRI to support the CPUC. It will also discuss the state of energy storage modeling and analysis in general, key considerations for a rapid deployment of energy storage, and the next steps for developing a standard energy storage evaluation methodology in California and beyond.
A recording of this seminar is available at: https://vimeo.com/84439503