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

Arjan S. Sidhu, Michael Pollitt and Karim Anaya

Applied Energy, 2018, vol. 212, issue C, 894 pages

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 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.

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: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (43)

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DOI: 10.1016/j.apenergy.2017.12.085

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