Unit energy storage cost calculation formula

What is electrical energy storage?

The electrical energy storage system is designed to compensate for load power shedding and surges inadmissible for gas engine generators. Table 1 shows the input data necessary for LCOS calculation. The base prices shown in Table 1 were used to calculate the value of the levelised cost of energy storage.

How is total exchange energy calculated?

It should be noted that analytical agencies calculate the total exchange energy based on the condition that a unit performs 1 complete charge-discharge cycle within one day, but this approach cannot be universal.

How are variable costs calculated?

Variable costs are inflated by 3% per year and a nominal discount value of 7% is used. While we calculate PV costs as a means to normalize all value streams, we essentially calculate LCOS to define the price necessary to achieve the desired return on investment over its economic life.

How is electricity delivered over its lifetime calculated?

At the design stage, the amount of electricity delivered over its lifetime can be calculated based on the service life of the storage unit, determined by the number of complete charge-discharge cycles, or based on the estimated lifetime of the ESS considering its operation mode, for example, operating as a backup power supply. 3. LCOS calculation

What is the levelised cost of storage?

In general, the levelised cost of storage shows the intrinsic value of a kWh of energy delivered by an ESS, for which it should be sold to achieve a zero net present value (NPV). The LCOS is determined as the sum of all investments over the lifetime of an ESS divided by the cumulative energy generated as a result of these investments.

How do you calculate PV costs?

Dividing the present value of the total cost by the total non-discounted throughput ($74,156/3,500,000) over 10 years yields 2.1 cents/kWh. As shown in column 2 of Table B.11, if we use 2.1 cents/kWh, we get total costs equal to the present value (PV) of the project costs, but we get PV costs of $55,730.