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ELECTRICITY STORAGE SYSTEMS: APPLICATIONS AND BUSINESS CASES

Electricity Storage Systems: Applications and Business Cases

Published On: June 04, 2019

Introduction

The electricity supplied by the solar photovoltaic (PV), wind, and Electric energy storage (EES) based integrated electricity supply systems are dispatchable and has the same order of availability as conventional generating units.

An assessment conducted by CERI covering all 10 Canadian provinces, estimated the cost of developing a dispatchable renewable electricity supply system in approximately 250 locations. Depending on the province the minimum reported Levelized Cost of Electricity (LCOE) is in the range of 16 – 21 cents/kWh in the investment year 2020, which corresponds to near term conditions. However, as storage and renewable generation technologies matures and capital costs declines due to technology learning, the LCOE declines by about 15-22% by 2030 and by 22-32% by 2040. Lowest LCOE values are observed in Atlantic Canada, Ontario, and Manitoba.

For more informations read the full report and see our data visualization dashboard.

Capacity Factors

The analysis framework and the assumptions described in the report are applied to all 250 resource locations to estimate the LCOE of electricity produced by the integrated system.

Levelized Cost of Electricity Value Distributions by Province and Investment Year

Distributions of estimated LCOE values by province and by investment year are depicted in the following figure. In many provinces, the estimated LCOE values are higher than conventional generation technologies such as natural gas combined cycle (NGCC) units. As estimated by CERI in Study 168 (CERI 2018a), depending on the province, LCOE of NGCC, without carbon pricing, is in the range of 6-10 cents/kWh. Electricity supplied by the system is emissions free and therefore has the ability to supply zero greenhouse gas (GHG) emissive electricity at a similar level of reliability as a conventional generating unit. By 2030-2040, variable renewables and storage combined systems are competitive against other zero GHG emissive dispatchable technologies such as nuclear power, large hydro, coal/natural gas-fired units with carbon capture and storage (CCS has non-zero GHG emissions but 90% lower than that of similar units without carbon capture).

Lowest LCOE Reported in Each Province in 2030 and Cost Contribution of the Main System Components

The LCOE of the system consists of generation and storage costs. Following figure depicts the lowest LCOE values reported in 2030 in each province and cost contributions to system components. As can be seen from the figure, generation and storage costs contribute equally to the LCOE. The generation cost component is higher than the LCOE of a combined solar PV and wind generation system (without storage). This is due to energy loss in storage units. The overall energy loss in each of the integrated electricity supply systems is in the order of 16-20%. Installed Capacities of System Componenets Following figure shows the installed capacities of system components (i.e., solar PV, wind and ESS) of the integrated electricity supply systems installed in locations with the lowest LCOE in each province in the investment year 2030 (i.e., LCOE values corresponds to the Figure). It can be seen that all systems require both battery storage systems and hydrogen fuel cell systems. The two types of storage systems are utilized to manage variability in different time scales. Utilization of two types of ESS technologies to provide energy time-shifting in different time scales is depicted in the Figure. This figure shows the state of charge of the two ESS units at the lowest LCOE location in Ontario over a period of two weeks in summer.

Installed Capacities of System Componenets

Following figure shows the installed capacities of system components (i.e., solar PV, wind and ESS) of the integrated electricity supply systems installed in locations with the lowest LCOE in each province in the investment year 2030 (i.e., LCOE values corresponds to the Figure). It can be seen that all systems require both battery storage systems and hydrogen fuel cell systems. The two types of storage systems are utilized to manage variability in different time scales. Utilization of two types of ESS technologies to provide energy time-shifting in different time scales is depicted in the Figure. This figure shows the state of charge of the two ESS units at the lowest LCOE location in Ontario over a period of two weeks in summer.

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