The potential for cost-effective battery storage projects in the US state of Nevada could range from 700 megawatts to more than 1,000MW by 2030, according to a new economic study.
The Brattle Group report, prepared for the Public Utilities Commission of Nevada and the Nevada Governor’s Office of Energy, also found that— for the Nevada system with a peak demand of roughly 8,500MW— up to 175MW of utility-scale battery storage with a four-hour storage capacity could be deployed cost effectively by 2020.
Ryan Hledik, a Brattle principal and co-author of the study, said: “Our findings have implications that extend beyond the state borders of Nevada. We have applied a new approach to determine how the simultaneous capture of multiple value streams impacts cost-effective storage deployment levels.”
The study also found that a 30% decline in storage costs (eg, from US$300 per kilowatt-hour to $210/kWh) “would increase cost-effective deployment levels by 200% to 500%”.
“The ability to use battery systems to mitigate distribution system outages potentially accounts for 20% to 40% of the total benefits, which can significantly increase the economically optimal level of storage deployment,” the report said.
Recognising uncertainty in future storage costs, the Brattle report recommended defining future storage procurement goals as a function of costs.
Brattle associate and study co-author Roger Lueken said: “Optimal storage procurement targets increase as storage costs decline. A flexible approach to procurement would allow larger quantities of storage to be deployed if storage costs decline quickly.”
Nevada and California are among several US states in recent months to have announced moves to expand battery energy storage facilities.
Last month, Nevada utility NV Energy began offering new incentives to customers installing for solar-integrated battery storage systems, following a new law approved by state legislators.