ORIGINAL REPORTING:What's the value of energy storage? It's complicated
What's the value of energy storage? It's complicated; Experts agree storage costs are falling, but few are sure of how to value storage
Herman K. Trabish, October 20, 2015 (Utility Dive)
Of the many questions about energy storage, none goes as unanswered as pinpointing the technology's price tag…[But whatever the exact] price is, it's coming down fast and will continue to do so…[GE’s initial costs about $2,000 per kWh…[but have dropped about two-thirds and the company] expect costs to drop another 50% in the next four to five years…Researchers at Rocky Mountain Institute (RMI) say the basic question is how to value the ability of storage to meet energy system needs. And RMI finds value depends on the location and type of grid service.
The researchers found some 37 different services that storage can provide, but narrowed their study to 13 fundamental services. The three stakeholder groups the benefits of those services go to are customers, utilities, and independent system operators/regional transmission organizations (ISO/RTOs). The researchers allocated the services among three grid levels: centralized, transmission-connected storage; distribution-connected storage; and behind-the-meter connected storage. They concluded batteries deployed for a single primary service generally do not provide a net economic benefit but stacking other uses on them shifts the economics in favor of storage. click here for more