A Social Cost Benefit Analysis of Grid-Scale Electrical Energy Storage Projects: Evaluating the Smarter Network Storage Project

Arjan Sidhu, Michael Pollitt and Karim Anaya

Cambridge Working Papers in Economics from Faculty of Economics, University of Cambridge

Abstract: 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 report is the Smarter Network Storage project, a 6 MW/10MWh 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 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.

Keywords: electrical energy storage; battery; social cost benefit analysis (search for similar items in EconPapers)
JEL-codes: D61 L94 L98 Q48 (search for similar items in EconPapers)
Date: 2017-05-23
New Economics Papers: this item is included in nep-cmp, nep-ene, nep-ore, nep-ppm and nep-reg
Note: mgp20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: A Social Cost Benefit Analysis of Grid-Scale Electrical Energy Storage Projects: Evaluating the Smarter Network Storage Project (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cam:camdae:1722

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