Engineering topics

Baxter, Richard

Publications and source records attributed to Baxter, Richard.

4 records

DOE OSTI2022

Energy Storage Financing: Operations & Market Strategy

This study investigates the impact that operations and market strategy have on the design and value of an energy storage system on three levels of the facility: the cell level, the system level, and the project level. The study provides insights for developers, capital providers, customers and policy makers into the impact different operational strategies have on effectiveness of energy storage system in today's emerging market. Energy storage systems can be used for a variety of usage profiles, with the choice having a profound impact on their performance, lifespan, and revenue potential. Most evaluations of application stacking only look at the possible revenue potential without understanding the increased costs and potential for major damage to the cells. Evaluating the impact of operational choices is critical to understanding the risk adjusted return from energy storage project investment. This is the fifth study in the Energy Storage Financing Study series, which is designed to investigate challenges surrounding the financing of energy storage projects in the U.S., promoting greater technology and project risk transparency, reducing project transaction costs, and supporting a level playing field for innovative energy storage technologies.

25 ENERGY STORAGE↗

DOE OSTI2021

2020 Energy Storage Pricing Survey

The annual Energy Storage Pricing Survey (ESPS) series is designed to provide a standardized reference system price for various energy storage technologies across a range of different power and energy ratings. This is an essential first step in comparing systems of the different technologies’ usage costs and total cost of ownership. The final system prices are developed based on data from an extensive set of interviews with representatives across the manufacturing and project development value chain, plus available published data. This information is incorporated into a consistent methodology structure that will allow pricing information to be incorporated at whatever level it was obtained, ranging from component to fully installed system. The ESPS system pricing methodology breaks down the cost of an energy storage system into the following component categories: the storage module; the balance of system; the power conversion system; the energy management system; and the engineering, procurement, and construction costs. By evaluating each of the different component costs separately, a more accurate system cost can be developed that provides internal pricing consistency between different project sizes using the same technology, as well as between different technologies that utilize similar components.

25 ENERGY STORAGE↗

DOE OSTI2021

2019 Energy Storage Pricing Survey

Since grid energy storage is still evolving rapidly, it is often difficult to obtain project specific capital costs for various energy storage technologies. This information is necessary to evaluate the profitability of the facility, as well as comparing different energy storage technology options. The goal of this report is to summarize energy storage capital costs that were obtained from industry pricing surveys. The methodology breaks down the cost of an energy storage system into the following component categories: the storage module; the balance of system; the power conversion system; the energy management system; and the engineering, procurement, and construction costs. By evaluating each of the different component costs separately, a synthetic system cost can be developed that provides internal pricing consistency between different project sizes using the same technology, as well as between different technologies that utilize similar components.

25 ENERGY STORAGE↗

DOE OSTI2021

Energy Storage Financing: Project and Portfolio Valuation

This study investigates the issues and challenges surrounding energy storage project and portfolio valuation and provide insights in to improving visibility into the process for developers, capital providers, and customers so they can make more informed choices. Energy storage project valuation methodology is typical of power sector projects through evaluating various revenue and cost assumptions in a project economic model. The difference is that energy storage projects have many more design and operational variables to incorporate, and the governing market rules that control these variables are still evolving. This makes project valuation for energy storage more difficult. As the number of operating projects grow, portfolios of these projects are being developed, garnering the interest of larger investors. Valuation challenges of these portfolios can be even more challenging as market role and geographical diversity can actually exacerbate the variability, not mitigate it. By proposing additional visibility of key factors and drivers for industry participants, the US DOE can reduce investment risk, expanding both the number and types of investors, plus helping emerging energy storage technology into sustained commercialization.

25 ENERGY STORAGE↗