This is an executive summary of a report that was prepared as a utility resource for planners and others involved in evaluating energy storage. As grid-connected energy storage installations transition from the demonstration phase to commercial deployment, it becomes increasingly important to understand the cost and valuation of storage. This is especially true when comparing to conventional generation or “wires-based” alternatives.
This report provides projected installed costs for energy storage systems assuming installation and start of commercial operation in 2017 and discusses various cost metrics used for storage and their applicability. Additionally, this report illustrates importance of pre-determining energy storage value as well as cost. Due to a multitude of energy storage sizes, locations, and uses, comparisons based on simplified duty cycle assumptions have potential to mislead planners and investors.