Economic analysis of battery storage systems : a levelized cost approach

Comello, Stephen ; Reichelstein, Stefan

Document Type: Working paper
Year of publication: 2018
The title of a journal, publication series: Working Papers
Volume: 3696
Place of publication: Stanford, CA
Publishing house: Stanford Graduate School of Business
ISSN: 1869-0483 , 1869-0491
Publication language: English
Institution: Business School > Stiftungsprofessur für ABWL (Reichelstein 2018-)
Subject: 330 Economics
Abstract: We introduce and validate a measure of the Levelized Cost of Electricity Storage (LCOES). On a per kWh basis, this metric captures the economic break-even price required to charge and discharge electricity in N cycles per year, subject to the maximum power (dis)charge not exceeding the power rating of the storage system at any point in time. LCOES is shown to be instrumental in characterizing the optimal size of a battery that balances the initial investment expenditure with periodic savings from storing, and subsequently consuming, self-generated energy. We apply the model to residential solar customers in Germany and California, two jurisdictions with markedly different electricity pricing rules and policy support mechanisms for the adoption of battery storage.

Dieser Eintrag ist Teil der Universitätsbibliographie.

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