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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.