Cost Analysis of Electricity Storage

IEEE TRANSACTIONS ON ENERGY CONVERSION, VOL. 23, NO. 2, JUNE 2008

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Analysis of the Cost per Kilowatt Hour to Store Electricity
Piyasak Poonpun, Student Member, IEEE, and Ward T. Jewell, Fellow, IEEE
Abstract—This paper presents a cost analysis of grid-connected electric energy storage. Various energy storage technologies are considered in the analysis. Life-cycle cost analysis is used. The results are presented in terms of the cost added to electricity stored and discharged, in US dollar per kilowatt hour. Results are compared with wholesale and retail electricity costs and with the cost of conventional pumped hydro storage. Index Terms—Batteries, economic analysis, energy storage, flywheels.

SUCU Unit cost for storage units (US$/kWh). TCC Total capital cost (US$). y Lifetime of energy storage (year). I. INTRODUCTION

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NOMENCLATURE Annual storage unit replacement cost (US$/kWh). Annualized capital cost (US$/year). Annual energy production of storage system (kWh/year). ARC Total annual replacement cost (US$/year). BOP Total cost for balance of plant (US$). BOPU Unit cost for balance of plant (US$/kWh). C Number of charge/discharge cycles in life of storage. COE Cost added by storing electricity (US$/kWh). CRF Capital recovery factor. D Annual operating days for storage unit (days per year). eff Efficiency F Future value of replacement cost (US$/kWh). Length of each discharge cycle (h). HO ir Annual interest rate (%). n Number of charge/discharge cycles per day. Fixed operation and maintenance cost (US$/kW· OMf year). OMC Total annual fixed operation and maintenance cost (US$/year). P Rated power output capacity of energy storage system (kW). PCS Total cost for power electronic (US$). PCSU Unit cost for power electronic (US$/kW). r Replacement period (year). SUC Total cost for storage units (US$). A AC AEP

Manuscript received February 6, 2007; revised July 25, 2007. Paper no. TEC00027-2007. The authors are with the Wichita State University,

References: [1] Pumped Hydro Storage. (2006). Electricity Storage Association, [Online]. Available: http://www.electricitystorage.org/tech/technologies_ technologies_pumpedhydro.htm [2] W. Jewell, P. Gomatom, L. Bam, and R. Kharel. (Jul. 2004). Evaluation of Distributed Electric Energy Storage and Generation, Final Report for PSERC Project T-21. PSERC Publication 04–25, Power Syst. Eng. Res. Center [Online]. Available: www.pserc.org/cgi-pserc/ getbig/publicatio/reports/2004report/jewell_der_final_report_2004.pdf [3] EPRI-DOE Handbook of Energy Storage for Transmission and Distribution Applications, EPRI, 2003. [4] M. R. Lindberg, “Engineering economic analysis,” in Mechanical Engineering Review Manual, 8th ed. San Carlos, CA: Professional Publications, 1990, ch. 2, pp. 2–3. [5] S. M. Schoenung and W. V. Hassenzahl, “Long- vs. short-term energy storage technologies analysis: A life-cycle cost study,” Sandia Natl. Lab., Albuquerque, NM, Sandia Rep. SAND2003-2783, 2003. [6] Energy Information Administration (2006). Annual energy outlook 2006 with projection to 2030. Report No. DOE/EIA-0383. [Online]. Available: http://www.eia.doe.gov/oiaf/aeo/ [7] S. Blankenship, “Flywheel prototype to be demonstrated for frequency regulation/grid stability,” Power Eng., vol. 109, no. 4, p. 46, Apr. 2005. [8] Information from price quotes and performance data provided by energy storage device manufacturers. [9] Energy Information Administration (Nov. 2006). Wholesale day ahead prices at selected hubs, peak. [Online]. Available: http://www. eia.doe.gov/cneaf/electricity/wholesale/wholesale.html [10] Energy Information Administration (Oct. 2006). “Average Retail Price of Electricity to Ultimate Customers by End-Use Sector,” Electric Power Annual with data for 2005. [Online]. Available: http://www.eig.gov/cneaf/electricity/epa/epat7p4.html [11] States with Renewable Portfolio Standards (May 2006). Pew center on global climate change. [Online]. Available: www.pewclimate.org/ what_s_being_done/in_the_states/rps.cfm [12] W. Jewell, R. Ramakumar, and S. Hill, “A study of dispersed photovoltaic generation on the PSO system,” IEEE Trans. Energy Convers., vol. 3, no. 3, pp. 473–478, Sep. 1988. Piyasak Poonpun (S’06) received the Bachelor’s degree from the King Mongkut’s Institute of Technology Ladkrabang, Bangkok, Thailand, in 1997, and the M.S. degree in electrical engineering in 2006 from Wichita State University, Wichita, KS, where he is currently working toward the Ph.D. degree. He is currently a Graduate Research Assistant at Wichita State University. Ward T. Jewell (M’77–F’03) received the B.S.E.E. degree from Oklahoma State University, Stillwater, in 1979, the M.S.E.E. degree from Michigan State University, East Lansing, in 1980, and the Ph.D. degree from Oklahoma State University, in 1986. He has been with Wichita State University, Wichita, KS, since 1987, where he is currently a Professor of Electrical Engineering. He is the Site Director at the Power System Engineering Research Center (PSerc), Wichita State University. His current research interests include electric power quality and advanced energy technologies. Authorized licensed use limited to: Stanford University. Downloaded on June 29, 2009 at 19:17 from IEEE Xplore. Restrictions apply.