What is storage NPV in terms of kWh?

The storage NPV in terms of kWh has to factor in degradation, round-trip efficiency, lifetime, and all the non-ideal factors of the battery. The combination of these factors is simply the storage discount rate. The financial NPV in financial terms has to include the storage NPV, inflation, rising energy prices, and cost of debt.

How do you calculate energy price for charging in year N?

To simplify the equation, let E p r i c e n be the energy price for charging in year n, described by E p r i c e n = e p r i c e (1 + r e p) n.

How much will LCOE cost a second set of energy storage investments?

This could be a mistake though, because there is no more curtailed solar to charge the devices, which means that the LCOE for the second set of energy storage investments would be $0.04/kWh plus $0.06/kWh from charging with existing, dispatchable generators.

How much does PV cost per kWh?

By discounting cycles to a present value of 2.63 million kWh and applying that value, we get an LCOS for this cost component of 2.8 cents per kWh. Applying that value to the annual throughput results in total costs of $98,674 and PV costs equal to our target of $74,156.

Is energy storage a good investment?

The return of investment is an important metric about how attractive an investment may be. However this is an important note that energy storage usually does not generate electricity savings directly, but allows the transport or trading of electricity. This usually results in storage not having a high ROI like solar investments, for example.

Why is energy provision important in the power system?

However, it maintains an outsized importance in the power system because energy provision is still the primary way that generation assets are compensated in deregulated markets (Durvasulu et al., 2024).