The unit investment cost of energy storage includes

How long does an energy storage system last?

The 2020 Cost and Performance Assessment analyzed energy storage systems from 2 to 10 hours. The 2022 Cost and Performance Assessment analyzes storage system at additional 24- and 100-hour durations.

What are the different types of energy storage costs?

The cost categories used in the report extend across all energy storage technologies to allow ease of data comparison. Direct costs correspond to equipment capital and installation, while indirect costs include EPC fee and project development, which include permitting, preliminary engineering design, and the owner’s engineer and financing costs.

How to promote energy storage technology investment?

Therefore, increasing the technology innovation level, as indicated by unit benefit coefficient, can promote energy storage technology investment. On the other hand, reducing the unit investment cost can mainly increase the investment opportunity value.

What is the expected value of a second energy storage technology?

The expected value of the first energy storage technology, including the embedded option, is Φ 1 (P). In State (1,2), the second energy storage technology arrives with a Poisson process, and the firm invests in the second technology at the optimal time. The investment opportunity value of the second energy storage technology is F1,2 (P).

What is the value of energy storage technology?

Specifically, with an expected growth rate of 0, when the volatility rises from 0.1 to 0.2, the critical value of the investment in energy storage technology rises from 0.0757 USD/kWh to 0.1019 USD/kWh, which is more pronounced.

What is the investment benefit coefficient of energy storage technology?

Therefore, this study uses the unit annual peaking capacity of the energy storage system for the solution, that is, the investment benefit coefficient of the first energy storage technology is 140 (14,000 MWh/100 MWh).