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A social cost benefit analysis of grid-scale electrical energy storage projects: A case study

Sidhu, Arjan S., Pollitt, Michael G., Anaya, Karim L.
Applied energy 2018 v.212 pp. 881-894
Monte Carlo method, assets, case studies, cost benefit analysis, discount rate, electric power, lithium batteries, longevity, modernization, risk, social benefit, society, uncertainty, Great Britain
This study explores and quantifies the social costs and benefits of grid-scale electrical energy storage (EES) projects in Great Britain. The case study for this paper is the Smarter Network Storage project, a 6 MW/10 MWh lithium battery placed at the Leighton Buzzard Primary substation to meet growing local peak demand requirements. This study analyses both the locational and system-wide benefits to grid-scale EES, determines the realistic combination of those social benefits, and juxtaposes them against the social costs across the useful lifecycle of the battery to determine the techno-economic performance. Risk and uncertainty from the benefit streams, cost elements, battery lifespan, and discount rate are incorporated into a Monte Carlo simulation. Using this framework, society can be guided to cost-effectively invest in EES as a grid modernization asset to facilitate the transition to a reliable, affordable, and clean power system.