New financial analysis tool for long-term energy storage in highly carbon-free networks

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Abstract graphic. Credit: DOI: 10.1016 / j.joule.2021.06.018

Renewable energy generation technologies such as solar, wind and hydro power continue to gain popularity around the world. As more and more renewable generation enters the grid, the success of these clean technologies will increasingly depend on the development of long-term energy storage solutions that support the variability of electricity generation.

Researchers at the National Renewable Energy Laboratory (NREL) have developed a rigorous new storage financial analysis tool (StoreFAST) model to assess the discounted cost of energy (LCOE), also known as the discounted cost of storage (LCOS) . This model makes it possible to identify potential long-term storage opportunities within the framework of a future electricity network with an 85% penetration of renewable energies. Researchers designed StoreFAST based on the success of the Hydrogen Financial Analysis Scenario Tool (H2FAST), created by NREL in 2015 as a practical aid to analyze the financial aspects of installing refueling stations. in hydrogen.

“The H2FAST model is very flexible,” said Michael Penev, infrastructure systems analyst at NREL. “There is nothing inherently specific to its use for hydrogen. For example, we used this framework to analyze the cost of long distance trucking, ammonia production, electric vehicle charging, etc. StoreFAST targets this analysis towards energy storage to calculate the efficiency of different systems. “

StoreFAST is a unique techno-economic tool in that it analyzes both energy storage systems and flexible power generation systems. The model generates visuals for three metrics: LCOE, financial performance metrics, and time series charts for all financial line items. The main inputs of the model include the power generation capacity of the system, capital costs, operation and maintenance (O&M) costs, electricity or fuel charging costs, storage time and capacity factors.

StoreFAST provides a consistent comparison between all technologies by analyzing key parameters describing system cost, performance, and capacity factor to calculate the net present value of all capital, operating, tax, and financial expenses divided by sales of electricity over the life of the system. This definition of LCOE provides a consistent comparison of storage technologies.

StoreFAST in action

A recent Joule The article provides a detailed techno-economic assessment of various storage technologies. Penev presented the results of this study, along with a demonstration of StoreFAST, at the March H2IQ hour of the Department of Energy’s (DOE) Office of Hydrogen and Fuel Cell Technologies. NREL researchers used the StoreFAST model to analyze the system from 12 hours to seven days of shelf life. The nominal storage time is defined as the time it would take for each system to completely discharge energy while still providing nominal power to the grid.

“Our techno-economic analysis team performed a rigorous literature review and gathered industry and DOE feedback on the characteristics of today’s costs and the potential for future cost reductions for eight storage systems. ‘different long-lasting energy,’ explained Penev. “These characteristics are condensed in the model and are readily available for analysts to compare to other energy storage technologies of interest.”

The study found that for long durations of energy storage (eg, more than 60 hours), clean hydrogen systems with geological storage and natural gas with carbon capture and sequestration are the least expensive options. , whether the system costs are based on current or future costs. Technology. The researchers also modeled the cost of an innovative energy storage system using fuel cells designed for heavy vehicles rather than conventional stationary fuel cells, and found that this system achieved a lower LCOE of 13 to 20. %.

Funding for this work was provided by the Strategic Analysis Team of the Office of Energy Efficiency and Renewable Energy of the United States Department of Energy, Office of Hydrogen and Battery Technologies. fuel, the Office of Solar Energy Technologies and the Office of Wind Energy Technologies. Besides Penev, major contributors within NREL included Chad Hunter, Evan Reznicek and Joshua Eichman.

Improving financial analysis at NREL

In addition to StoreFAST and H2FAST, NREL also offers an Electric Vehicle Infrastructure Financial Analysis Scenario Tool (EVI-FAST) that leverages the same framework to model side-by-side scenarios of electric vehicle charging equipment. A recent article by Joule reviews the analysis of EVI-FAST to determine the LCOE of electric vehicle charging in the United States.

The NREL team is identifying new ways to specialize FAST models for future analysis, including integrating the formula into Python to allow researchers to examine capacity expansion and renovations. Future versions of the models will be able to assess the degradation of different systems over time, as well as include statistics on impact analysis.


Researchers take a practical look beyond short-term energy storage


More information:
Chad A. Hunter et al, Techno-economic analysis of long-term energy storage and flexible power generation technologies to support high-variable renewable energy grids, Joule (2021). DOI: 10.1016 / j.joule.2021.06.018
Journal Information:
Joule

Provided by the National Renewable Energies Laboratory

Quote: New financial analysis tool for long-term energy storage in highly carbon-free networks (2021, July 30) retrieved on November 1, 2021 from https://techxplore.com/news/2021-07-financial-analysis -tool-long-duration- energy.html

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