Lazards Levelized Cost of Storage Version 40 Vfinal
Lazards Levelized Cost of Storage Version 40 Vfinal
Lazards Levelized Cost of Storage Version 40 Vfinal
L A Z A R D ’ S L E V E L I Z E D C O S T O F S T O R A G E A N A LY S I S — V E R S I O N 4 . 0
Table of Contents
I INTRODUCTION 1
APPENDIX
Introduction
Lazard’s Levelized Cost of Storage (“LCOS”) analysis(1) addresses the following topics:
Executive Summary and Key Findings
Overview of Lazard’s LCOS analysis
Summary of key findings from Lazard’s LCOS v4.0
Objectives, Scope and Methodology
Overview of key objectives and scope of our LCOS analysis
Summary of selected limitations of our LCOS analysis, including an overview of what the LCOS does and does not do
Methodological overview of our approach to the LCOS analysis
Methodological overview of our approach to the Value Snapshot analysis
Overview of the evolution of Lazard’s LCOS and a summary of key changes year-over-year
Lazard’s LCOS Analysis
Overview of the use cases analyzed in our LCOS analysis
Description of the operational parameters of selected energy storage systems for each use case analyzed
Comparative LCOS analysis for various energy storage systems on a $/MWh and $/kW-year basis for the use cases analyzed
Comparison of capital costs for various energy storage systems on a $/kW basis for the use cases analyzed
Illustration of the expected capital cost declines by technology
Overview of historical LCOS declines for select use cases using lithium-ion technologies
Landscape of Energy Storage Revenue Potential
Overview of quantifiable revenue streams currently available to deployed energy storage systems
Overview of the universe of potential sources of revenue for various use cases
Description of revenue streams available from wholesale markets, utilities and customers
Energy Storage Value Snapshot Analysis
Overview of the Value Snapshot analysis and description of energy storage system configurations, cost and revenue assumptions
Description of the Value Snapshot analysis and identification of selected geographies for each use case analyzed
Summary results from the Value Snapshot analysis
Comparative Value Snapshot analysis reflecting typical economics associated with energy storage systems across U.S. and international geographies
Selected appendix materials
(1) Lazard’s LCOS analysis is conducted with support from Enovation Partners, a leading energy consulting firm. 1
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
II Executive Summary and Key Findings
II EXECUTIVE SUMMARY AND KEY FINDINGS
1 Wholesale
In-Front-of-the-Meter
2 Transmission and
Distribution
3 Utility-Scale
Energy Storage (PV + Storage) Energy Storage
Technology Levelized Cost Landscape of
Value
of Storage Revenue
Snapshot
Commercial & Analysis v4.0 Potential
Analysis
4 Industrial
(Standalone)
Behind-the-Meter
Commercial &
5 Industrial
(PV + Storage)
6 Residential
(PV + Storage) 2
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
II EXECUTIVE SUMMARY AND KEY FINDINGS
3
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
III Objectives, Scope and Methodology
III OBJECTIVES, SCOPE AND METHODOLOGY
Cost: Analyzes costs related to lithium-ion, flow batteries and lead chemistries
Analyze current cost and (excludes mechanical, gravity and thermal technologies)
performance data for selected Cost assumptions are based on 2018 product/component delivery
energy storage technologies and use Capital structure and interest rates are standardized across
cases, sourced from an extensive geographies and use cases to enable comparison
survey of leading equipment Use cases have been defined to ensure comparability and are intended
vendors, integrators and developers to represent commercial storage development
LCOS
Analysis
Revenue assumptions have been limited to currently identifiable
Revenue:
sources of value or savings
Analyze identifiable sources of
The LCOS focuses on those regions of the U.S. and select international
revenue available to energy storage
geographies (i.e., Australia, Germany and the U.K.) with the most active
projects
and transparent markets for energy storage
Value Snapshot:
Provide an overview of illustrative
Regions, mix of revenue sources, applicable subsidies and specific
project returns (“Value Snapshots”)
configurations are intended to be reflective of actual market activity
for selected use cases, based on
Project economics depicted in the Value Snapshots reflects simulated
identifiable revenues (or savings)
storage system performance and market rules
and costs potentially available in
selected markets/geographies
4
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
III OBJECTIVES, SCOPE AND METHODOLOGY
What Our LCOS Analysis Does What Our LCOS Analysis Does Not Do
Defines operational parameters associated with energy storage Identify the full range of potentially viable energy storage
systems designed for a selected subset of the most prevalent use technologies (e.g., mechanical, gravity and thermal)
cases of energy storage
Identify the full range of use cases available to energy storage
Aggregates cost and operational data from original equipment systems
manufacturers and energy storage developers, after validation
from additional Industry participants/energy storage users
Provide precise inputs for actual project evaluation or resource
Analyzes, based on the installed cost, what revenue is required planning studies, which would require case-specific system
over the indicated project life to achieve certain levelized returns configurations and project/plan-specific procurement and
for various technologies, designed for a selected subset of installation costs, among other things
identified use cases
Authoritatively establish or predict prices or subsidies for energy
Provides an “apples-to-apples” comparison among various storage projects/products
technologies within a selected subset of identified use cases
Identify and quantify all potential types of benefits provided by
Aggregates robust survey data to define a range of energy storage for power grids or consumers
future/expected capital cost decreases by technology
Surveys currently available revenue streams associated with each Provide a definitive view of project profitability, overall or to
use case across selected geographies specific individuals/entities, for the various use cases across all
potential locations and specific circumstances
Profiles the economics of typical examples of each use case,
located in geographic regions where they are most common, Provide an “apples-to-apples” comparison to conventional or
providing a Value Snapshot of the associated financial returns Alternative Energy generation
5
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
III OBJECTIVES, SCOPE AND METHODOLOGY
Selected Use Cases Illustrative Revenue Sources Optimization Analysis(1) Illustrative Project Returns
1 Wholesale
Resource
Frequency Regulation Adequacy
42.7%
Transmission and
Location/ 2 Spin/Non-
Distribution Spinning/Non-Spinning Reserves
Spin
Owner Reserve
7.7%
Frequency
Resource Adequacy Regulation
3 Utility-Scale
(PV + Storage) 29.3%
Energy Storage
Distribution Deferral Energy
Arbitrage
Commercial & 20.3%
4 Industrial
Demand Response—Wholesale Revenue Sources
(Standalone)
(-) Operating Costs
(-) Debt Service
Commercial & Demand Response—Utility (-) Taxes
5 Industrial
(PV + Storage) (-) Capital Costs
Bill Management
Residential
6 Levered IRR = ~16.7%(2)
(PV + Storage)
Local Incentive Payments
(1) The Value Snapshots analyze project economics of selected energy storage applications by simulating locally available revenue streams, given the energy storage system’s performance constraints, applicable contractual
rules and assuming perfect foresight with respect to future prices and load. 7
Copyright 2018 Lazard (2) Cash flow waterfall is simplified for illustrative purposes only. See appendix for full valuation details.
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
III OBJECTIVES, SCOPE AND METHODOLOGY
8
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
IV Lazard’s Levelized Cost of Storage Analysis v4.0
A Overview of Selected Use Cases
A OVERVIEW OF SELECTED USE CASES
Lithium-Ion
Energy storage system designed to defer transmission and/or distribution upgrades, typically
Transmission and
2 placed at substations or distribution feeder controlled by utilities to provide flexible capacity while Flow Battery-Vanadium
Distribution also maintaining grid stability
Flow Battery-Zinc Bromide
Lithium-Ion
Energy storage system designed to be paired with large solar PV facilities to improve the market
Utility-Scale
3 price of solar generation, reduce solar curtailment and provide grid support when not supporting Flow Battery-Vanadium
(PV + Storage) solar objectives
Flow Battery-Zinc Bromide
Energy storage system designed for behind-the-meter peak shaving and demand charge
reduction services for commercial energy users Lithium-Ion
Commercial &
4 Industrial Units typically sized to have sufficient power/energy to support multiple commercial energy Lead-Acid
(Standalone) management strategies and provide the option of the system to provide grid services to a Advanced Lead (Lead Carbon)
utility or the wholesale market
Behind-the-Meter
Energy storage system designed for behind-the-meter peak shaving and demand charge
reduction services for commercial energy users Lithium-Ion
Commercial &
5 Industrial Units typically sized to have sufficient power/energy to support multiple commercial energy Lead-Acid
(PV + Storage) management strategies and provide the option of the system to provide grid services to a Advanced Lead (Lead Carbon)
utility or the wholesale market
Energy storage system designed for behind-the-meter residential home use—provides backup
power, power quality improvements and extends usefulness of self-generation (e.g., “solar PV + Lithium-Ion
Residential storage”)
6 Lead-Acid
(PV + Storage)
Regulates the power supply and smooths the quantity of electricity sold back to the grid from Advanced Lead (Lead Carbon)
distributed PV applications
9
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
A OVERVIEW OF SELECTED USE CASES
Transmission and
2 20 10 -- 60 1 250 15,000 300,000
Distribution
Utility-Scale
3 20 20 40 80 1 350 28,000 560,000
(PV + Storage)
Commercial &
4 Industrial 10 1 -- 2 1 250 500 5,000
(Standalone)
Behind-the-Meter
Commercial &
5 Industrial 20 0.50 1 2 1 350 700 14,000
(PV + Storage)
Residential
20 0.01 0.02 0.04 1 350 14 280
6 (PV + Storage)
(1) Usable energy indicates energy stored and able to be dispatched from system.
(2) Indicates power rating of system (i.e., system size).
(3)
(4)
Indicates total battery energy content on a single, 100% charge, or “usable energy.” Usable energy divided by power rating (in MW) refl ects hourly duration of system.
“DOD” denotes depth of battery discharge (i.e., the percent of the battery’s energy content that is discharged). Depth of discharge of 100% indicates that a fully charged battery discharges all of its energy. For 10
Copyright 2018 Lazard example, a battery that cycles 48 times per day with a 10% depth of discharge would be rated at 4.8 100% DOD Cycles per Day.
(5) Indicates number of days of system operation per calendar year.
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
B Lazard’s Levelized Cost of Storage Analysis v4.0
B LAZARD’S LEVELIZED COST OF STORAGE ANALYSIS V4.0
Transmission and
Flow (V) $293 $467
Distribution
Flow (Zn) $406 $464
Utility-Scale
Flow (V) $133 $222
(PV + Storage)
Flow (Zn) $115 $167
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000
Levelized Cost ($/kW-year)
Source: Lazard and Enovation Partners estimates.
Note: Here and throughout this presentation, unless otherwise indicated, analysis assumes 20% debt at an 8% interest rate and 80% equity at a 12% cost of equity. 12
Flow Battery Vanadium and Flow Battery Zinc Bromide denoted in this report as Flow (V) and Flow (Zn), respectively.
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
B LAZARD’S LEVELIZED COST OF STORAGE ANALYSIS V4.0
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000
CAGR (11%) Cost declines through increased manufacturing scale and energy densities
Flow Battery– 500 Long-term contracts with vanadium providers to make costs more predictable
Vanadium Focus on providing plug and play (e.g., turnkey) units to keep EPC costs
0 5-Year (38%) down
2018 2019 2020 2021 2022
$1,000
Cost declines through increased manufacturing scale and increased densities
CAGR (14%)
(e.g., thicker zinc plating)
Flow Battery– 500
Reduced cost through more widely available components (e.g., pumps and
Zinc Bromide
valves)
0 5-Year (45%)
2018 2019 2020 2021 2022 Expectations of reductions in EPC and PCS costs
$1,000
CAGR (3%)
500 Limited usability and performance translates into high levelized cost
Lead
Limited cost improvement expected
0 5-Year (13%)
2018 2019 2020 2021 2022
$1,000
CAGR (4%) Greater performance than typical lead-acid options
Advanced 500 Cost reduction and performance improvements expected to continue
Lead OEMs looking to use this class to address larger commercial systems not
0 5-Year (17%) typically served by lead acid
2018 2019 2020 2021 2022
Note: Capital costs reported are based on year 1 costs for systems designed for all LCOS use cases. Capital cost units are the total investment divided by the storage equipment’s 14
energy capacity (kWh rating) and inverter rating (kW rating). Capital cost outlook represents average expected cost reductions across use cases.
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
B LAZARD’S LEVELIZED COST OF STORAGE ANALYSIS V4.0
LCOS v2.0
Wholesale(1)
LCOS v3.0
LCOS v4.0
Transmission and
LCOS v3.0
Distribution
LCOS v4.0
LCOS v2.0
Commercial &
Industrial LCOS v3.0
(Standalone)
LCOS v4.0
(1) ”Wholesale” was termed “Peaker Replacement” in earlier versions of the LCOS.
15
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
V Landscape of Energy Storage Revenue Potential
V LANDSCAPE OF ENERGY STORAGE REVENUE POTENTIAL
Energy Storage Revenue Streams by Market & Use Case (2017) What Determines Available Revenues for Energy Storage?
$/MW-Yr. Enabling policies: Include explicit targets and/or state goals incentivizing
procurement of energy storage
$450,000
Example—California energy storage procurement targets (e.g., AB2514)
requires 1,325 MW by 2020
400,000 Incentives: Upfront or performance-based incentive payments to subsidize
initial capital requirements
Example—California Self-Generation Incentive Programs (“SGIP”): $450
350,000
million budget available to behind-the-meter storage
Market fundamentals: Endogenous market conditions resulting in higher
300,000 revenue potential and/or increased opportunity to participate in wholesale
markets
Example—Daily volatility in energy prices lead to arbitrage opportunities
250,000 worth ~$56/kW and $33/kW in CAISO and ERCOT respectively
Example—Constrained conditions resulted in capacity price of $180/kW
in ISO-NE for new resources
200,000
Favorable wholesale/utility program rules: Accessible revenue sources
with operational requirements favoring fast-responding assets
150,000 Example—PJM regulation: average prices of $16.78/eff. MW in 2017,
with significant revenue upside for performance for storage under RegD
signal
100,000
Example—U.K. utilities required to procure enhanced frequency
reserves for fast response assets under 4-year contracts. Short contract
50,000 term requires asset to be amortized for fewer years, driving prices up
High Peak and/or Demand Charges: Opportunities to avoid utility charges
through peak load management during specified periods or system peak
0 hours
CAISO NYISO ISO-NE PJM ERCOT U.K. Australia Canada Example—SDG&E demand charge of $49/kW, one of the highest in the
U.S.
Energy Arbitrage Regulation Capacity Spinning Reserves Bill Management
Demand
Manages high wholesale price or emergency conditions on the
Response–
Wholesale
grid by calling on users to reduce or shift electricity demand
Allows storage of inexpensive electricity to sell at a higher price
Energy
Arbitrage later (includes only wholesale electricity purchase)
Wholesale
Transmission
Deferral
purpose of delaying, reducing or avoiding transmission system
investment
Demand
Manages high wholesale price or emergency conditions on the
Response–
Utility
grid by calling on users to reduce or shift electricity demand
Allows reduction of demand charge using battery discharge and
Bill
Customer
the daily storage of electricity for use when time of use rates
Management
C are highest
2017 Wholesale Revenue Streams ($/kW-year) Resource Adequacy (“RA”) Revenue Streams
CAISO: Distributed resources in CAISO can access resource adequacy
CAISO payments through one of two auction programs run by the IOUs
ERCOT Local Capacity Resource (“LCR”) Auction
IOUs acquire RA and DR-like capabilities from bidders in a pay-as-
Domestic
Spinning Assumed capable to participate in spinning reserve market If an energy storage asset qualifies for the wholesale markets
Reserves Self scheduled/price taker in the day ahead market Qualification through a DR program, there may be limitations placed on the
DR Programs
Method asset or additional revenues sources available (beyond
Revenue estimates are based on direct or DR program-enabled capacity)
Capacity/ participation in the capacity markets (NYISO, PJM, ISO-NE,
The Locational Based Marginal Pricing (“LBMP”) for an energy
Demand Canada and U.K.), responsive reserve service (ERCOT), Congestion storage asset will be different from the system-wide energy Energy
Response planning resource auction (MISO) and reserve capacity Constraints price (used here), as will the spread between daily high and Arbitrage
mechanism (Australia) daily low price
Source: Utility Dive, GTM, AEP Central Hudson and ISO NE regulatory filings, ACEEE, Sandia and WECC. 19
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
V LANDSCAPE OF ENERGY STORAGE REVENUE POTENTIAL
$50
49 Demand charges are widely used in
United
the U.S. for C&I customers. (See
States
chart to left for examples)
40
33
32
30
25 25 24
6 21 20 20
Demand charges are common in
7 20
20 18 Australia and vary widely by utility
14 14
27 13 Australia and region (surveyed demand
4 12
14 14 15 6 13 charges range from $6.3 –
10
7 10 $131.5/kW-month)
8
0 Units:
NV Power | LGS-3
Con. Ed. | SC-9
SDG&E | AL-TOU
Delmarva | GS
Union Elec. | LPS
PSEG | LPL
APS | E-32 L
SCE | GS-2
NSTAR | GS-3-TOU
AEP | GS-4
Con. Ed. | SC-8
TWh
(2)
period. Energy storage can enable customers to save money through reducing peak consumption, lowering their demand charge.
Non-exhaustive list based on FERC Form 1 total reported TWh by tariff, sorted by highest total demand charges during peak periods. 20
Copyright 2018 Lazard (3) Values based on PJM 17/18 DY Reliability Pricing Model results & Transmission Cost Recovery Factors for customers with >5kVA demand in ERCOT.
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
VI Energy Storage Value Snapshot Analysis
VI ENERGY STORAGE VALUE SNAPSHOT ANALYSIS
Value Snapshot configurations are based on illustrative energy storage applications that have been designed to capture value streams
available in a number of ISOs/RTOs and international markets, including:
Serving RTO markets (i.e., energy arbitrage, frequency regulation, spinning/non-spinning reserves and demand response)
Serving utilities (i.e., demand response, transmission deferral and distribution deferral)
Behind-the-Meter load profiles are based on a U.S. DOE medium/large-sized commercial building profile and an illustrative residential
Configurations profile
Specific tariff rates reflect medium or large commercial power with peak load floors and caps of 10 kW and 100 kW, respectively;
applies demand charges ranging from $4 – $53 per peak kW, depending on jurisdiction and customer type
Combined/stacked revenue streams are based on optimal combination of available options, given the energy storage system’s
performance constraints, applicable contractual rules and assuming perfect foresight with respect to future prices and load
Analysis assumes state-level, non-tax-oriented incentive payments (e.g., LCR/SGIP in California) are treated as taxable income for
federal income tax purposes(1)
Cost estimates(2) are based on the LCOS framework (i.e., assumptions regarding O&M, warranties, etc.) but sized to reflect the system
configuration described above
System size and performance adjusted to capture multiple value streams and to reflect estimated regional differences in installation
costs(3)
Cost Estimates
System costs are based on individual component (lithium-ion battery, inverter, etc.) sizing and are based on the needs determined in the
analysis
Operational performance specifications required to serve various modeled revenue streams, based on lithium-ion systems in the LCOS
(cycling life, depth of discharge, etc.)
Results System economic viability is illustrated by a levered IRR(4)
International
Use Case U.S. Location Owner Revenue Streams
Location
(1) Lazard’s Value Snapshot analysis intentionally excluded a Transmission and Distribution use case from its international analysis. 22
Copyright 2018 Lazard
This study has been prepared by Lazard for general informational purposes only, and it is not intended to be, and should not be construed as, financial or
other advice. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of Lazard.
VI ENERGY STORAGE VALUE SNAPSHOT ANALYSIS
IRR
2
U.S. International
25%
22.8% 4
20.1%
1
20
16.7% 5
5
4 14.3%
15 13.6%
11.9%
3 3
10 8.8% 8.7%
6 1
5.2% 4.4% 6
5 2
2.5%
--(1)
0
Wholesale T&D Utility-Scale C&I C&I Residential Wholesale T&D Utility-Scale C&I C&I Residential
(CAISO) (NYISO) (PV + (Standalone) (PV + (PV + (U.K.) (International) (PV + (Standalone) (PV + (PV +
Storage) (CAISO) Storage) Storage) Storage) (Ontario) Storage) Storage)
(ERCOT) (CAISO) (CAISO) (Australia) (Australia) (Germany)
Energy Arbitrage Frequency Regulation Spinning/Non-Spinning Reserves
Resource Adequacy Distribution Deferral Demand Response–Wholesale
Demand Response–Utility Bill Management Local Incentive Payments
Revenue Sources
Demand Response–Wholesale -- -- -- -- -- --
Revenue Sources
Distribution Deferral -- -- -- -- -- --
Demand Response–Utility -- -- -- -- -- --
Transmission and
Flow (V) 253 48 48 46 72 $467
Distribution
Flow (Zn) 251 48 48 46 72 $464
Utility-Scale
Flow (V) 153 1911 39 $222
(PV + Storage)
Flow (Zn) 113 198 27 $167
Units Lithium Flow Battery-Vanadium Flow Battery-Zinc Bromide Lithium Flow Battery-Vanadium Flow Battery-Zinc Bromide Lithium Flow Battery-Vanadium Flow Battery-Zinc Bromide
Duration Hours 4 – 4 4 – 4 4 – 4 6 – 6 6 – 6 6 – 6 4 – 4 4 – 4 4 – 4
Operating Days/Year 350 – 350 350 – 350 350 – 350 250 – 250 250 – 250 250 – 250 350 – 350 350 – 350 350 – 350
Solar PV Capacity MW 0.00 – 0.00 0.00 – 0.00 0.00 – 0.00 0.00 – 0.00 0.00 – 0.00 0.00 – 0.00 40.00 – 40.00 40.00 – 40.00 40.00 – 40.00
Annual Solar PV Generation MWh 0 – 0 0 – 0 0 – 0 0 – 0 0 – 0 0 – 0 119,136 – 80,592 119,136 – 80,592 119,136 – 80,592
Memo: Annual Used Energy MWh 140,000 – 140,000 140,000 – 140,000 140,000 – 140,000 15,000 – 15,000 15,000 – 15,000 15,000 – 15,000 28,000 – 28,000 28,000 – 28,000 28,000 – 28,000
Memo: Project Used Energy MWh 2,800,000 – 2,800,000 2,800,000 – 2,800,000 2,800,000 – 2,800,000 300,000 – 300,000 300,000 – 300,000 300,000 – 300,000 560,000 – 560,000 560,000 – 560,000 560,000 – 560,000
Initial Capital Cost—DC $/kWh $232 – $398 $314 – $550 $409 – $478 $190 – $442 $271 – $550 $456 – $544 $293 – $265 $550 – $819 $381 – $456
Initial Capital Cost—AC $/kW $49 – $61 $0 – $0 $0 – $0 $60 – $151 $0 – $0 $0 – $0 $79 – $33 $0 – $0 $0 – $0
Solar PV Capital Cost $/kW $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $1,250 – $950 $1,250 – $950 $1,250 – $950
Total Initial Installed Cost $ $114 – $181 $142 – $236 $180 – $207 $17 – $33 $21 – $38 $32 – $37 $80 – $65 $99 – $109 $86 – $80
O&M % of BESS % 1.28% – 0.76% 1.01% – 0.58% 0.78% – 0.67% 2.29% – 0.98% 1.72% – 0.85% 1.02% – 0.86% 2.00% – 2.31% 1.16% – 0.78% 1.67% – 1.40%
O&M % of PCS % 1.71% – 1.01% 1.35% – 0.77% 1.04% – 0.89% 3.05% – 1.31% 2.29% – 1.13% 1.36% – 1.14% 2.66% – 3.08% 1.54% – 1.04% 2.23% – 1.86%
Warranty Expense % of BESS % 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50%
Warranty Expense % of PCS % 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00%
Investment Tax Credit % 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0%
Charging Cost $/MWh $33 – $33 $33 – $33 $33 – $33 $33 – $33 $33 – $33 $33 – $33 $0 – $0 $0 – $0 $0 – $0
Charging Cost Escalator % 0.55% – 0.55% 0.55% – 0.55% 0.55% – 0.55% 0.55% – 0.55% 0.55% – 0.55% 0.55% – 0.55% 0.00% – 0.00% 0.00% – 0.00% 0.00% – 0.00%
Efficiency of Storage Technology % 87% – 90% 74% – 77% 67% – 70% 86% – 90% 74% – 77% 69% – 76% 90% – 84% 72% – 72% 76% – 69%
Levelized Cost of Storage $/MWh $204 – $298 $257 – $390 $267 – $300 $263 – $471 $293 – $467 $406 – $464 $108 – $140 $133 – $222 $115 – $167
Units Lithium Lead Advanced Lead Lithium Lead Advanced Lead Lithium Lead Advanced Lead
Power Rating MW 1 – 1 1 – 1 1 – 1 0.5 – 0.5 0.5 – 0.5 0.5 – 0.5 0.01 – 0.01 0.01 – 0.01 0.01 – 0.01
Duration Hours 2 – 2 2 – 2 2 – 2 4 – 4 4 – 4 4 – 4 4 – 4 4 – 4 4 – 4
Operating Days/Year 250 – 250 250 – 250 250 – 250 350 – 350 350 – 350 350 – 350 350 – 350 350 – 350 350 – 350
Solar PV Capacity MW 0.00 – 0.00 0.00 – 0.00 0.00 – 0.00 1.00 – 1.00 1.00 – 1.00 1.00 – 1.00 0.02 – 0.02 0.02 – 0.02 0.02 – 0.02
Annual Solar PV Generation MWh 0 – 0 0 – 0 0 – 0 1,752 – 2,190 1,752 – 1,971 1,752 – 2,190 33 – 23 33 – 23 33 – 23
Memo: Annual Used Energy MWh 500 – 500 500 – 500 500 – 500 700 – 700 700 – 700 700 – 700 14 – 14 14 – 14 14 – 14
Memo: Project Used Energy MWh 5,000 – 5,000 5,000 – 5,000 5,000 – 5,000 14,000 – 14,000 14,000 – 14,000 14,000 – 14,000 280 – 280 280 – 280 280 – 280
Initial Capital Cost—DC $/kWh $335 – $580 $343 – $397 $422 – $537 $409 – $572 $384 – $417 $463 – $537 $639 – $780 $409 – $340 $616 – $522
Initial Capital Cost—AC $/kW $158 – $254 $158 – $254 $158 – $254 $191 – $292 $191 – $255 $191 – $292 $130 – $174 $205 – $182 $205 – $182
EPC Costs $ $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0 $0 – $0
Solar PV Capital Cost $/kW $0 – $0 $0 – $0 $0 – $0 $1,900 – $3,270 $1,900 – $2,585 $1,900 – $3,270 $3,270 – $2,961 $3,270 – $2,961 $3,270 – $2,961
O&M % of BESS % 3.98% – 2.34% 3.91% – 3.09% 3.32% – 2.48% 3.70% – 2.61% 3.91% – 3.49% 3.32% – 2.76% 2.20% – 1.79% 3.14% – 3.74% 2.19% – 2.57%
O&M % of PCS % 5.30% – 3.11% 5.21% – 4.12% 4.43% – 3.30% 4.94% – 3.49% 5.21% – 4.65% 4.43% – 3.68% 2.93% – 2.39% 4.19% – 4.99% 2.92% – 3.43%
Warranty Expense % of BESS % 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50% 1.50% – 1.50%
Warranty Expense % of PCS % 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00% 2.00% – 2.00%
Investment Tax Credit % 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0% 0.0% – 0.0%
Charging Cost Escalator % 0.50% – 0.50% 0.50% – 0.50% 0.50% – 0.50% 0.00% – 0.00% 0.00% – 0.00% 0.00% – 0.00% 0.00% – 0.00% 0.00% – 0.00% 0.00% – 0.00%
Efficiency of Storage Technology % 91% – 94% 72% – 72% 82% – 82% 90% – 91% 72% – 72% 82% – 82% 89% – 86% 72% – 72% 82% – 82%
Levelized Cost of Storage $/MWh $829 – $1,152 $1,076 – $1,225 $1,005 – $1,204 $315 – $366 $382 – $399 $347 – $378 $476 – $735 $512 – $707 $498 – $675
California 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 30,084.1 $ 30,966.4 $ 32,423.6 $ 32,774.7 $ 32,850.5 $ 34,536.1 $ 36,078.6 $ 37,510.2
Energy Arbitrage - 5,628.2 5,908.4 6,345.5 6,507.5 6,604.3 7,195.1 7,763.9 8,258.5
Frequency Regulation - 8,076.2 8,553.9 9,359.1 9,509.8 9,493.2 10,357.8 11,129.4 11,869.8
Spinning/Non-Spinning Reserves - 2,129.7 2,254.2 2,469.0 2,507.4 2,503.0 2,733.2 2,935.4 3,132.0
Resource Adequacy - 14,250.0 14,250.0 14,250.0 14,250.0 14,250.0 14,250.0 14,250.0 14,250.0
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - - - - - - - - -
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (8,553.5) $ (8,678.3) $ (10,633.0) $ (10,767.1) $ (10,906.2) $ (11,336.2) $ (11,787.6) $ (12,219.0)
Storage O&M - (1,312.2) (1,345.0) (1,378.7) (1,413.1) (1,448.5) (1,638.8) (1,854.1) (2,097.8)
Storage Warranty - - - (1,825.3) (1,825.3) (1,825.3) (1,825.3) (1,825.3) (1,825.3)
Storage Augmentation Costs - (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6)
Solar O&M - - - - - - - - -
Storage Charging - (2,256.7) (2,348.7) (2,444.5) (2,544.2) (2,647.9) (2,887.5) (3,123.6) (3,311.4)
EBITDA $- $ 21,530.6 $ 22,288.1 $ 21,790.6 $ 22,007.6 $ 21,944.3 $ 23,199.9 $ 24,291.0 $ 25,291.2
Less: MACRS D&A - (137,275.1) - - - - - - -
EBIT $- $ (115,744.5) $ 22,288.1 $ 21,790.6 $ 22,007.6 $ 21,944.3 $ 23,199.9 $ 24,291.0 $ 25,291.2
Less: Interest Expense - (2,196.4) (2,148.4) (2,096.6) (2,040.6) (1,980.1) (1,597.0) (1,034.2) (207.1)
Less: Cash Taxes - - - - - - (6,045.3) (6,508.1) (7,019.4)
Tax Net Income $- $ (117,940.9) $ 20,139.7 $ 19,694.0 $ 19,967.0 $ 19,964.2 $ 15,557.6 $ 16,748.7 $ 18,064.6
MACRS D&A - 137,275.1 - - - - - - -
EPC (17,748.5) - - - - - - - -
Storage Module Capital (96,693.3) - - - - - - - -
Inverter / AC System Capital (6,479.5) - - - - - - - -
Balance of System Capital (16,353.8) - - - - - - - -
Solar Capital - - - - - - - - -
ITC - - - - - - - - -
Debt 27,455.0 - - - - - - - -
Principal - (600.0) (647.9) (699.8) (755.8) (816.2) (1,199.3) (1,762.2) (2,589.2)
After-Tax Levered Cash Flow $ (109,820.1) $ 18,734.2 $ 19,491.7 $ 18,994.3 $ 19,211.2 $ 19,148.0 $ 14,358.3 $ 14,986.5 $ 15,475.4
Levered Project IRR 16.7%
Levered Project NPV 34,326,697
Model Assumptions
Storage Size (MW) 100.000 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 28%
Storage Capacity (MWh) 400.000 Storage EPC Cost (%) 15.7% Cost of Debt 8% Charging Cost Escalation 1%
Solar Sizing (MW) 0.000 Storage O&M Cost (%) 1.1% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 244 Storage Efficiency (% RT) 87.4% Cost of Equity 12% Regional EPC Scalar 1.09
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $0.00 WACC 11% Useful Life (years) 20
New York 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 6,369.6 $ 6,438.7 $ 6,644.9 $ 6,729.7 $ 6,760.0 $ 7,098.5 $ 2,844.4 $ 3,037.2
Energy Arbitrage - 75.2 81.1 81.9 85.9 93.0 98.3 107.4 116.9
Frequency Regulation - 667.4 684.5 779.2 831.9 824.0 858.0 933.7 1,035.6
Spinning/Non-Spinning Reserves - 596.3 613.9 696.2 743.3 736.3 769.5 834.3 925.3
Resource Adequacy - 712.5 741.0 769.5 750.5 788.5 1,054.5 969.0 959.5
Distribution Deferral - 4,318.2 4,318.2 4,318.2 4,318.2 4,318.2 4,318.2 - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - - - - - - - - -
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (1,147.1) $ (1,160.1) $ (1,452.3) $ (1,466.3) $ (1,480.8) $ (1,528.5) $ (1,589.6) $ (1,657.5)
Storage O&M - (289.0) (296.2) (303.6) (311.2) (318.9) (360.9) (408.3) (461.9)
Storage Warranty - - - (278.7) (278.7) (278.7) (278.7) (278.7) (278.7)
Storage Augmentation Costs - (751.9) (751.9) (751.9) (751.9) (751.9) (751.9) (751.9) (751.9)
Solar O&M - - - - - - - - -
Storage Charging - (106.2) (112.0) (118.1) (124.5) (131.3) (137.1) (150.7) (165.0)
EBITDA $- $ 5,222.5 $ 5,278.7 $ 5,192.7 $ 5,263.5 $ 5,279.2 $ 5,570.0 $ 1,254.8 $ 1,379.7
Less: MACRS D&A - (23,966.1) - - - - - - -
EBIT $- $ (18,743.6) $ 5,278.7 $ 5,192.7 $ 5,263.5 $ 5,279.2 $ 5,570.0 $ 1,254.8 $ 1,379.7
Less: Interest Expense - (383.5) (375.1) (366.0) (356.3) (345.7) (278.8) (180.6) (36.2)
Less: Cash Taxes - - - - - (116.0) (1,382.8) (280.7) (351.1)
Tax Net Income $- $ (19,127.1) $ 4,903.6 $ 4,826.7 $ 4,907.2 $ 4,817.5 $ 3,908.3 $ 793.5 $ 992.4
MACRS D&A - 23,966.1 - - - - - - -
EPC (5,768.6) - - - - - - - -
Storage Module Capital (14,685.1) - - - - - - - -
Inverter / AC System Capital (1,144.3) - - - - - - - -
Balance of System Capital (2,368.0) - - - - - - - -
Solar Capital - - - - - - - - -
ITC - - - - - - - - -
Debt 4,793.2 - - - - - - - -
Principal - (104.7) (113.1) (122.2) (131.9) (142.5) (209.4) (307.6) (452.0)
After-Tax Levered Cash Flow $ (19,172.9) $ 4,734.3 $ 4,790.5 $ 4,704.5 $ 4,775.3 $ 4,675.0 $ 3,698.9 $ 485.8 $ 540.4
Levered Project IRR 22.8%
Levered Project NPV 8,679,758
Model Assumptions
Storage Size (MW) 10.000 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 26%
Storage Capacity (MWh) 60.000 Storage EPC Cost (%) 33.8% Cost of Debt 8% Charging Cost Escalation 1%
Solar Sizing (MW) 0.000 Storage O&M Cost (%) 1.5% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 78 Storage Efficiency (% RT) 87.5% Cost of Equity 12% Regional EPC Scalar 1.25
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $0.00 WACC 11% Useful Life (years) 20
Texas 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 6,878.7 $ 7,016.5 $ 7,157.0 $ 7,300.2 $ 7,446.2 $ 8,221.2 $ 9,076.9 $ 10,021.6
Energy Arbitrage - 4,513.1 4,603.4 4,695.4 4,789.3 4,885.1 5,393.6 5,955.0 6,574.8
Frequency Regulation - 598.5 610.2 622.1 634.5 647.2 714.6 789.0 871.1
Spinning/Non-Spinning Reserves - 1,767.1 1,802.9 1,839.5 1,876.3 1,913.9 2,113.0 2,332.9 2,575.7
Resource Adequacy - - - - - - - - -
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - - - - - - - - -
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (1,956.6) $ (1,980.1) $ (2,365.5) $ (2,390.3) $ (2,415.6) $ (2,552.3) $ (2,707.0) $ (2,882.0)
Storage O&M - (522.4) (535.5) (548.9) (562.6) (576.7) (652.5) (738.2) (835.2)
Storage Warranty - - - (361.2) (361.2) (361.2) (361.2) (361.2) (361.2)
Storage Augmentation Costs - (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1)
Solar O&M - (420.0) (430.5) (441.3) (452.3) (463.6) (524.5) (593.4) (671.4)
Storage Charging - - - - - - - - -
EBITDA $- $ 4,922.1 $ 5,036.4 $ 4,791.5 $ 4,909.9 $ 5,030.6 $ 5,668.9 $ 6,369.9 $ 7,139.6
Less: MACRS D&A - (50,472.7) - - - - - - -
EBIT $- $ (45,550.6) $ 5,036.4 $ 4,791.5 $ 4,909.9 $ 5,030.6 $ 5,668.9 $ 6,369.9 $ 7,139.6
Less: Interest Expense - (1,153.7) (1,128.5) (1,101.2) (1,071.8) (1,040.1) (838.9) (543.2) (108.8)
Less: Cash Taxes - - - - - - - (1,223.6) (1,476.5)
Tax Net Income $- $ (46,704.3) $ 3,907.9 $ 3,690.3 $ 3,838.1 $ 3,990.5 $ 4,830.0 $ 4,603.1 $ 5,554.3
MACRS D&A - 50,472.7 - - - - - - -
EPC (4,443.6) - - - - - - - -
Storage Module Capital (20,266.0) - - - - - - - -
Inverter / AC System Capital (1,265.1) - - - - - - - -
Balance of System Capital (2,129.2) - - - - - - - -
Solar Capital (44,000.0) - - - - - - - -
ITC 21,631.2 - - - - - - - -
Debt 14,420.8 - - - - - - - -
Principal - (315.1) (340.3) (367.6) (397.0) (428.7) (629.9) (925.6) (1,360.0)
After-Tax Levered Cash Flow $ (36,052.0) $ 3,453.3 $ 3,567.6 $ 3,322.8 $ 3,441.1 $ 3,561.8 $ 4,200.1 $ 3,677.5 $ 4,194.3
Levered Project IRR 8.8%
Levered Project NPV (5,240,060)
Model Assumptions
Storage Size (MW) 20.000 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 21%
Storage Capacity (MWh) 80.000 Storage EPC Cost (%) 19.8% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 40.000 Storage O&M Cost (%) 2.2% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 43 Storage Efficiency (% RT) 87.2% Cost of Equity 12% Regional EPC Scalar 0.95
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $10.50 WACC 11% Useful Life (years) 20
California 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 353.5 $ 361.9 $ 372.7 $ 379.4 $ 385.1 $ 422.1 $- $-
Energy Arbitrage - 11.6 12.4 14.1 14.2 14.0 15.0 15.8 16.1
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - 38.3 41.9 48.1 48.4 47.4 50.5 51.2 52.3
Resource Adequacy - 71.2 71.2 71.2 71.2 71.2 71.2 71.2 71.2
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0
Bill Management - 219.3 223.3 226.3 232.6 239.5 272.3 311.7 355.7
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (90.5) $ (91.4) $ (109.8) $ (110.7) $ (111.7) $ (116.9) $- $-
Storage O&M - (35.9) (36.8) (37.8) (38.7) (39.7) (44.9) - -
Storage Warranty - - - (17.4) (17.4) (17.4) (17.4) - -
Storage Augmentation Costs - (54.5) (54.5) (54.5) (54.5) (54.5) (54.5) - -
Solar O&M - - - - - - - - -
Storage Charging - - - - - - - - -
EBITDA $- $ 263.0 $ 270.5 $ 263.0 $ 268.7 $ 273.4 $ 305.2 $- $-
Less: MACRS D&A - (1,565.1) - - - - - - -
EBIT $- $ (1,302.1) $ 270.5 $ 263.0 $ 268.7 $ 273.4 $ 305.2 $- $-
Less: Interest Expense - (25.0) (23.3) (21.4) (19.4) (17.3) (3.5) - -
Less: Cash Taxes - - - - - - (84.4) - -
Tax Net Income $- $ (1,327.2) $ 247.2 $ 241.5 $ 249.2 $ 256.2 $ 217.3 $- $-
MACRS D&A - 1,565.1 - - - - - - -
EPC (474.2) - - - - - - - -
Storage Module Capital (662.7) - - - - - - - -
Inverter / AC System Capital (216.7) - - - - - - - -
Balance of System Capital (211.6) - - - - - - - -
Solar Capital - - - - - - - - -
ITC - - - - - - - - -
Debt 313.0 - - - - - - - -
Principal - (21.6) (23.3) (25.2) (27.2) (29.4) (43.2) - -
After-Tax Levered Cash Flow $ (1,252.1) $ 216.4 $ 223.8 $ 216.3 $ 222.0 $ 226.8 $ 174.1 $- $-
Levered Project IRR 11.9%
Levered Project NPV 32,373
Model Assumptions
Storage Size (MW) 1.000 Storage Extended Warranty (%) 1.6% Debt 20% Combined Tax Rate 28%
Storage Capacity (MWh) 2.000 Storage EPC Cost (%) 54.2% Cost of Debt 8% Charging Cost Escalation 1%
Solar Sizing (MW) 0.000 Storage O&M Cost (%) 3.2% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 440 Storage Efficiency (% RT) 91.1% Cost of Equity 12% Regional EPC Scalar 1.09
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $0.00 WACC 11% Useful Life (years) 10
California 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 477.4 $ 488.3 $ 500.7 $ 510.8 $ 520.4 $ 576.3 $ 638.7 $ 709.0
Energy Arbitrage - 7.5 8.1 8.9 9.1 9.0 9.8 10.3 11.0
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - 22.2 23.9 27.1 27.5 27.1 28.8 30.1 31.3
Resource Adequacy - 71.2 71.2 71.2 71.2 71.2 71.2 71.2 71.2
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0
Bill Management - 363.4 372.0 380.3 389.9 400.1 453.4 514.0 582.4
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (109.5) $ (110.8) $ (130.1) $ (131.5) $ (132.9) $ (140.6) $ (149.4) $ (159.3)
Storage O&M - (35.9) (36.8) (37.7) (38.7) (39.7) (44.9) (50.8) (57.4)
Storage Warranty - - - (17.9) (17.9) (17.9) (17.9) (17.9) (17.9)
Storage Augmentation Costs - (56.1) (56.1) (56.1) (56.1) (56.1) (56.1) (56.1) (56.1)
Solar O&M - (17.5) (17.9) (18.4) (18.8) (19.3) (21.9) (24.7) (28.0)
Storage Charging - - - - - - - - -
EBITDA $- $ 367.9 $ 377.5 $ 370.6 $ 379.3 $ 387.5 $ 435.6 $ 489.3 $ 549.6
Less: MACRS D&A - (2,945.2) - - - - - - -
EBIT $- $ (2,577.3) $ 377.5 $ 370.6 $ 379.3 $ 387.5 $ 435.6 $ 489.3 $ 549.6
Less: Interest Expense - (67.3) (65.8) (64.3) (62.5) (60.7) (48.9) (31.7) (6.3)
Less: Cash Taxes - - - - - - (108.2) (128.1) (152.0)
Tax Net Income $- $ (2,644.7) $ 311.6 $ 306.4 $ 316.8 $ 326.9 $ 278.5 $ 329.5 $ 391.2
MACRS D&A - 2,945.2 - - - - - - -
EPC (474.2) - - - - - - - -
Storage Module Capital (742.9) - - - - - - - -
Inverter / AC System Capital (127.6) - - - - - - - -
Balance of System Capital (277.8) - - - - - - - -
Solar Capital (2,585.0) - - - - - - - -
ITC 1,262.2 - - - - - - - -
Debt 841.5 - - - - - - - -
Principal - (18.4) (19.9) (21.4) (23.2) (25.0) (36.8) (54.0) (79.4)
After-Tax Levered Cash Flow $ (2,103.7) $ 282.2 $ 291.7 $ 284.9 $ 293.6 $ 301.8 $ 241.7 $ 275.5 $ 311.9
Levered Project IRR 13.6%
Levered Project NPV 312,222
Model Assumptions
Storage Size (MW) 0.500 Storage Extended Warranty (%) 1.6% Debt 20% Combined Tax Rate 28%
Storage Capacity (MWh) 2.000 Storage EPC Cost (%) 46.5% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 1.000 Storage O&M Cost (%) 3.1% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 78 Storage Efficiency (% RT) 90.5% Cost of Equity 12% Regional EPC Scalar 1.09
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $17.50 WACC 11% Useful Life (years) 20
California 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue 10.0 $ 7.1 $ 7.3 $ 7.5 $ 7.7 $ 7.9 $ 8.9 $ 10.0 $ 11.4
Energy Arbitrage - - - - - - - - -
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - - - - - - - - -
Resource Adequacy - - - - - - - - -
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - 7.1 7.3 7.5 7.7 7.9 8.9 10.0 11.4
Local Incentive Payments 10.0 - - - - - - - -
Total Operating Costs $- $ (2.6) $ (2.6) $ (3.1) $ (3.1) $ (3.2) $ (3.3) $ (3.5) $ (3.7)
Storage O&M - (0.6) (0.6) (0.7) (0.7) (0.7) (0.8) (0.9) (1.0)
Storage Warranty - - - (0.5) (0.5) (0.5) (0.5) (0.5) (0.5)
Storage Augmentation Costs - (1.6) (1.6) (1.6) (1.6) (1.6) (1.6) (1.6) (1.6)
Solar O&M - (0.4) (0.4) (0.4) (0.4) (0.4) (0.5) (0.6) (0.6)
Storage Charging - - - - - - - - -
EBITDA $ 10.0 $ 4.5 $ 4.7 $ 4.4 $ 4.5 $ 4.7 $ 5.6 $ 6.6 $ 7.7
Less: MACRS D&A - (68.1) - - - - - - -
EBIT $ 10.0 $ (63.6) $ 4.7 $ 4.4 $ 4.5 $ 4.7 $ 5.6 $ 6.6 $ 7.7
Less: Interest Expense - (1.6) (1.5) (1.5) (1.4) (1.4) (1.1) (0.7) (0.1)
Less: Cash Taxes (2.8) - - - - - - - (2.1)
Tax Net Income $ 7.2 $ (65.2) $ 3.2 $ 2.9 $ 3.1 $ 3.3 $ 4.4 $ 5.8 $ 5.4
MACRS D&A - 68.1 - - - - - - -
EPC (3.3) - - - - - - - -
Storage Module Capital (26.4) - - - - - - - -
Inverter / AC System Capital (2.0) - - - - - - - -
Balance of System Capital (3.3) - - - - - - - -
Solar Capital (62.3) - - - - - - - -
ITC 29.2 - - - - - - - -
Debt 19.5 - - - - - - - -
Principal - (0.4) (0.5) (0.5) (0.5) (0.6) (0.9) (1.2) (1.8)
After-Tax Levered Cash Flow $ (41.5) $ 2.6 $ 2.7 $ 2.4 $ 2.5 $ 2.7 $ 3.6 $ 4.6 $ 3.6
Levered Project IRR 5.2%
Levered Project NPV (15,565)
Model Assumptions
Storage Size (MW) 0.010 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 28%
Storage Capacity (MWh) 0.040 Storage EPC Cost (%) 11.2% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 0.020 Storage O&M Cost (%) 1.9% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 170 Storage Efficiency (% RT) 88.3% Cost of Equity 12% Regional EPC Scalar 1.09
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $19.78 WACC 11% Useful Life (years) 20
United Kingdom 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 46,754.5 $ 47,302.8 $ 47,378.4 $ 47,456.3 $ 8,922.4 $ 10,003.2 $ 11,220.6 $ 12,592.9
Energy Arbitrage - - - - - - - - -
Frequency Regulation - 44,780.8 44,780.8 44,780.8 44,780.8 - - - -
Spinning/Non-Spinning Reserves - - - - - 6,166.6 6,808.5 7,517.1 8,299.5
Resource Adequacy - 1,973.7 2,521.9 2,597.6 2,675.5 2,755.8 3,194.7 3,703.5 4,293.4
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - - - - - - - - -
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (6,460.8) $ (6,496.9) $ (8,359.2) $ (8,397.1) $ (8,435.9) $ (8,644.7) $ (8,880.5) $ (9,146.6)
Storage O&M - (1,312.2) (1,345.0) (1,378.7) (1,413.1) (1,448.5) (1,638.8) (1,854.1) (2,097.8)
Storage Warranty - - - (1,825.3) (1,825.3) (1,825.3) (1,825.3) (1,825.3) (1,825.3)
Storage Augmentation Costs - (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6) (4,984.6)
Solar O&M - - - - - - - - -
Storage Charging - (164.0) (167.3) (170.7) (174.1) (177.6) (196.0) (216.4) (239.0)
EBITDA $- $ 40,293.7 $ 40,805.8 $ 39,019.2 $ 39,059.3 $ 486.5 $ 1,358.5 $ 2,340.2 $ 3,446.3
Less: MACRS D&A - (19,407.2) (33,259.8) (23,753.1) (16,962.6) (12,127.8) - - -
EBIT $- $ 20,886.5 $ 7,546.1 $ 15,266.1 $ 22,096.6 $ (11,641.3) $ 1,358.5 $ 2,340.2 $ 3,446.3
Less: Interest Expense - (2,173.0) (2,125.5) (2,074.2) (2,018.8) (1,959.0) (1,580.0) (1,023.1) (204.9)
Less: Cash Taxes - (6,549.7) (1,897.2) (4,617.2) (7,027.2) - - - -
Tax Net Income $- $ 12,163.8 $ 3,523.4 $ 8,574.8 $ 13,050.6 $ (13,600.2) $ (221.5) $ 1,317.0 $ 3,241.3
MACRS D&A - 19,407.2 33,259.8 23,753.1 16,962.6 12,127.8 - - -
EPC (16,283.0) - - - - - - - -
Storage Module Capital (96,693.3) - - - - - - - -
Inverter / AC System Capital (6,479.5) - - - - - - - -
Balance of System Capital (16,353.8) - - - - - - - -
Solar Capital - - - - - - - - -
ITC - - - - - - - - -
Debt 27,161.9 - - - - - - - -
Principal - (593.5) (641.0) (692.3) (747.7) (807.5) (1,186.5) (1,743.4) (2,561.6)
After-Tax Levered Cash Flow $ (108,647.7) $ 30,977.4 $ 36,142.1 $ 31,635.5 $ 29,265.5 $ (2,280.0) $ (1,408.0) $ (426.3) $ 679.8
Levered Project IRR 4.4%
Levered Project NPV (9,932,582)
Model Assumptions
Storage Size (MW) 100.000 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 35%
Storage Capacity (MWh) 400.000 Storage EPC Cost (%) 14.4% Cost of Debt 8% Charging Cost Escalation 2%
Solar Sizing (MW) 0.000 Storage O&M Cost (%) 1.1% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 55 Storage Efficiency (% RT) 87.4% Cost of Equity 12% Regional EPC Scalar 1
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $0.00 WACC 11% Useful Life (years) 20
Australia 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 8,868.8 $ 9,113.4 $ 9,364.8 $ 9,623.3 $ 9,888.9 $ 11,332.0 $ 12,987.8 $ 14,887.6
Energy Arbitrage - 6,584.6 6,760.7 6,941.6 7,127.3 7,318.1 8,351.8 9,532.8 10,882.4
Frequency Regulation - 455.6 469.3 483.4 497.9 512.8 594.5 689.2 799.0
Spinning/Non-Spinning Reserves - - - - - - - - -
Resource Adequacy - 1,828.5 1,883.3 1,939.8 1,998.0 2,058.0 2,385.7 2,765.7 3,206.2
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - - - - - - - - -
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (1,956.6) $ (1,980.1) $ (2,365.5) $ (2,390.3) $ (2,415.6) $ (2,552.3) $ (2,707.0) $ (2,882.0)
Storage O&M - (522.4) (535.5) (548.9) (562.6) (576.7) (652.5) (738.2) (835.2)
Storage Warranty - - - (361.2) (361.2) (361.2) (361.2) (361.2) (361.2)
Storage Augmentation Costs - (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1) (1,014.1)
Solar O&M - (420.0) (430.5) (441.3) (452.3) (463.6) (524.5) (593.4) (671.4)
Storage Charging - - - - - - - - -
EBITDA $- $ 6,912.2 $ 7,133.3 $ 6,999.3 $ 7,233.0 $ 7,473.2 $ 8,779.7 $ 10,280.8 $ 12,005.6
Less: MACRS D&A - (14,467.6) (23,148.1) (13,888.9) (8,333.3) (8,333.3) - - -
EBIT $- $ (7,555.4) $ (16,014.8) $ (6,889.5) $ (1,100.3) $ (860.1) $ 8,779.7 $ 10,280.8 $ 12,005.6
Less: Interest Expense - (1,157.4) (1,132.1) (1,104.8) (1,075.3) (1,043.4) (841.6) (545.0) (109.2)
Less: Cash Taxes - - - - - - - (3,407.5) (4,163.8)
Tax Net Income $- $ (8,712.8) $ (17,146.9) $ (7,994.3) $ (2,175.6) $ (1,903.5) $ 7,938.1 $ 6,328.3 $ 7,732.7
MACRS D&A - 14,467.6 23,148.1 13,888.9 8,333.3 8,333.3 - - -
EPC (4,677.5) - - - - - - - -
Storage Module Capital (20,266.0) - - - - - - - -
Inverter / AC System Capital (1,265.1) - - - - - - - -
Balance of System Capital (2,129.2) - - - - - - - -
Solar Capital (44,000.0) - - - - - - - -
ITC - - - - - - - - -
Debt 14,467.6 - - - - - - - -
Principal - (316.1) (341.4) (368.8) (398.3) (430.1) (632.0) (928.6) (1,364.4)
After-Tax Levered Cash Flow $ (57,870.2) $ 5,438.6 $ 5,659.7 $ 5,525.8 $ 5,759.4 $ 5,999.7 $ 7,306.2 $ 5,399.7 $ 6,368.3
Levered Project IRR 8.7%
Levered Project NPV (8,544,983)
Model Assumptions
Storage Size (MW) 20.000 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 35%
Storage Capacity (MWh) 80.000 Storage EPC Cost (%) 20.9% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 40.000 Storage O&M Cost (%) 2.2% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 350 Storage Efficiency (% RT) 87.2% Cost of Equity 12% Regional EPC Scalar 1
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $10.50 WACC 11% Useful Life (years) 20
Ontario 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 489.5 $ 502.1 $ 515.1 $ 528.4 $ 542.0 $ 615.7 $- $-
Energy Arbitrage - - - - - - - - -
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - - - - - - - - -
Resource Adequacy - - - - - - - - -
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - 56.5 57.9 59.3 60.8 62.3 70.5 79.8 90.2
Demand Response–Utility - - - - - - - - -
Bill Management - 433.0 444.3 455.8 467.6 479.7 545.2 619.8 704.6
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (148.0) $ (150.6) $ (170.8) $ (173.6) $ (176.4) $ (191.9) $ (87.0) $ (100.9)
Storage O&M - (35.9) (36.8) (37.8) (38.7) (39.7) (44.9) - -
Storage Warranty - - - (17.4) (17.4) (17.4) (17.4) - -
Storage Augmentation Costs - (54.5) (54.5) (54.5) (54.5) (54.5) (54.5) - -
Solar O&M - - - - - - - - -
Storage Charging - (57.5) (59.3) (61.0) (62.9) (64.7) (75.1) (87.0) (100.9)
EBITDA $- $ 341.5 $ 351.5 $ 344.3 $ 354.8 $ 365.6 $ 423.8 $ (87.0) $ (100.9)
Less: MACRS D&A - (218.1) (373.7) (266.9) (190.6) (136.3) - - -
EBIT $- $ 123.4 $ (22.2) $ 77.4 $ 164.2 $ 229.3 $ 423.8 $ (87.0) $ (100.9)
Less: Interest Expense - (24.4) (22.7) (20.9) (18.9) (16.8) (3.4) - -
Less: Cash Taxes - (34.6) - (4.0) (50.8) (74.4) (147.2) - -
Tax Net Income $- $ 64.3 $ (45.0) $ 52.5 $ 94.4 $ 138.1 $ 273.3 $ (87.0) $ (100.9)
MACRS D&A - 218.1 373.7 266.9 190.6 136.3 - - -
EPC (435.0) - - - - - - - -
Storage Module Capital (662.7) - - - - - - - -
Inverter / AC System Capital (216.7) - - - - - - - -
Balance of System Capital (211.6) - - - - - - - -
Solar Capital - - - - - - - - -
ITC - - - - - - - - -
Debt 305.2 - - - - - - - -
Principal - (21.1) (22.8) (24.6) (26.5) (28.7) (42.1) - -
After-Tax Levered Cash Flow $ (1,220.8) $ 261.3 $ 306.0 $ 294.8 $ 258.5 $ 245.7 $ 231.2 $- $-
Levered Project IRR 20.1%
Levered Project NPV 399,363
Ontario 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Model Assumptions
Storage Size (MW) 1.000 Storage Extended Warranty (%) 1.6% Debt 20% Combined Tax Rate 35%
Storage Capacity (MWh) 2.000 Storage EPC Cost (%) 49.8% Cost of Debt 8% Charging Cost Escalation 3%
Solar Sizing (MW) 0.000 Storage O&M Cost (%) 3.2% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 225 Storage Efficiency (% RT) 91.1% Cost of Equity 12% Regional EPC Scalar 1
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $0.00 WACC 11% Useful Life (years) 10
Australia 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue $- $ 621.6 $ 650.8 $ 682.6 $ 704.7 $ 727.9 $ 859.2 $ 1,021.4 $ 1,222.3
Energy Arbitrage - - - - - - - - -
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - - - - - - - - -
Resource Adequacy - - - - - - - - -
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - 621.6 650.8 682.6 704.7 727.9 859.2 1,021.4 1,222.3
Local Incentive Payments - - - - - - - - -
Total Operating Costs $- $ (109.5) $ (110.8) $ (130.1) $ (131.5) $ (132.9) $ (140.6) $ (149.4) $ (159.3)
Storage O&M - (35.9) (36.8) (37.7) (38.7) (39.7) (44.9) (50.8) (57.4)
Storage Warranty - - - (17.9) (17.9) (17.9) (17.9) (17.9) (17.9)
Storage Augmentation Costs - (56.1) (56.1) (56.1) (56.1) (56.1) (56.1) (56.1) (56.1)
Solar O&M - (17.5) (17.9) (18.4) (18.8) (19.3) (21.9) (24.7) (28.0)
Storage Charging - - - - - - - - -
EBITDA $- $ 512.1 $ 540.0 $ 552.5 $ 573.3 $ 595.0 $ 718.5 $ 872.0 $ 1,062.9
Less: MACRS D&A - (833.7) (1,333.9) (800.3) (480.2) (480.2) - - -
EBIT $- $ (321.6) $ (793.9) $ (247.8) $ 93.1 $ 114.8 $ 718.5 $ 872.0 $ 1,062.9
Less: Interest Expense - (66.7) (65.2) (63.7) (62.0) (60.1) (48.5) (31.4) (6.3)
Less: Cash Taxes - - - - - - (234.5) (294.2) (369.8)
Tax Net Income $- $ (388.3) $ (859.1) $ (311.5) $ 31.1 $ 54.6 $ 435.5 $ 546.4 $ 686.8
MACRS D&A - 833.7 1,333.9 800.3 480.2 480.2 - - -
EPC (435.0) - - - - - - - -
Storage Module Capital (742.9) - - - - - - - -
Inverter / AC System Capital (127.6) - - - - - - - -
Balance of System Capital (277.8) - - - - - - - -
Solar Capital (2,585.0) - - - - - - - -
ITC - - - - - - - - -
Debt 833.7 - - - - - - - -
Principal - (18.2) (19.7) (21.2) (22.9) (24.8) (36.4) (53.5) (78.6)
After-Tax Levered Cash Flow $ (3,334.7) $ 427.2 $ 455.1 $ 467.6 $ 488.4 $ 510.1 $ 399.1 $ 492.9 $ 608.2
Levered Project IRR 14.3%
Levered Project NPV 646,862
Model Assumptions
Storage Size (MW) 0.500 Storage Extended Warranty (%) 1.6% Debt 20% Combined Tax Rate 35%
Storage Capacity (MWh) 2.000 Storage EPC Cost (%) 42.6% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 1.000 Storage O&M Cost (%) 3.1% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 250 Storage Efficiency (% RT) 90.5% Cost of Equity 12% Regional EPC Scalar 1
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $17.50 WACC 11% Useful Life (years) 20
Germany 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Total Revenue 12.6 $ 7.5 $ 7.8 $ 8.0 $ 8.2 $ 8.5 $ 9.8 $ 11.4 $ 13.2
Energy Arbitrage - - - - - - - - -
Frequency Regulation - - - - - - - - -
Spinning/Non-Spinning Reserves - - - - - - - - -
Resource Adequacy - - - - - - - - -
Distribution Deferral - - - - - - - - -
Demand Response–Wholesale - - - - - - - - -
Demand Response–Utility - - - - - - - - -
Bill Management - 7.5 7.8 8.0 8.2 8.5 9.8 11.4 13.2
Local Incentive Payments 12.6 - - - - - - - -
Total Operating Costs $- $ (2.6) $ (2.6) $ (3.1) $ (3.1) $ (3.2) $ (3.3) $ (3.5) $ (3.7)
Storage O&M - (0.6) (0.6) (0.7) (0.7) (0.7) (0.8) (0.9) (1.0)
Storage Warranty - - - (0.5) (0.5) (0.5) (0.5) (0.5) (0.5)
Storage Augmentation Costs - (1.6) (1.6) (1.6) (1.6) (1.6) (1.6) (1.6) (1.6)
Solar O&M - (0.4) (0.4) (0.4) (0.4) (0.4) (0.5) (0.6) (0.6)
Storage Charging - - - - - - - - -
EBITDA $ 12.6 $ 5.0 $ 5.2 $ 4.9 $ 5.1 $ 5.3 $ 6.5 $ 7.9 $ 9.6
Less: MACRS D&A - (19.4) (31.1) (18.6) (11.2) (11.2) - - -
EBIT $ 12.6 $ (14.4) $ (25.9) $ (13.7) $ (6.1) $ (5.9) $ 6.5 $ 7.9 $ 9.6
Less: Interest Expense - (1.6) (1.5) (1.5) (1.4) (1.4) (1.1) (0.7) (0.1)
Less: Cash Taxes (4.4) - - - - - - - (3.3)
Tax Net Income $ 8.2 $ (16.0) $ (27.4) $ (15.2) $ (7.5) $ (7.3) $ 5.4 $ 7.2 $ 6.1
MACRS D&A - 19.4 31.1 18.6 11.2 11.2 - - -
EPC (3.1) - - - - - - - -
Storage Module Capital (26.4) - - - - - - - -
Inverter / AC System Capital (2.0) - - - - - - - -
Balance of System Capital (3.3) - - - - - - - -
Solar Capital (62.3) - - - - - - - -
ITC - - - - - - - - -
Debt 19.4 - - - - - - - -
Principal - (0.4) (0.5) (0.5) (0.5) (0.6) (0.8) (1.2) (1.8)
After-Tax Levered Cash Flow $ (69.4) $ 3.0 $ 3.2 $ 2.9 $ 3.1 $ 3.4 $ 4.6 $ 6.0 $ 4.3
Levered Project IRR 2.5%
Levered Project NPV (36,513) Rating (kWh) 10.0
Germany 2018 2019 2020 2021 2022 2023 2028* 2033* 2038*
Model Assumptions
Storage Size (MW) 0.010 Storage Extended Warranty (%) 1.5% Debt 20% Combined Tax Rate 35%
Storage Capacity (MWh) 0.040 Storage EPC Cost (%) 10.3% Cost of Debt 8% Charging Cost Escalation 0%
Solar Sizing (MW) 0.020 Storage O&M Cost (%) 1.9% Equity 80% O&M Escalation 2.5%
Full DOD Cycles Per Year 250 Storage Efficiency (% RT) 88.3% Cost of Equity 12% Regional EPC Scalar 1
Depth of Discharge (%) 100% Solar Fixed O&M ($/kW-yr.) $19.78 WACC 11% Useful Life (years) 20
ESS
SM BOS PCS • Racking Frame/Cabinet
SM Storage Module • Battery Management System (“BMS”)
• Battery Modules
• Container
DC
Balance of • Monitors and Controls
BOS
System • Thermal Management
• Fire Suppression
DC AC
Switch
Power • Inverter
AC PCS Conversion • Protection (Switches, Breakers, etc.)
Breaker
System • Energy Management System (“EMS”)
• Project Management
Engineering, • Engineering Studies/Permitting
EPC Procurement & • Site Preparation/Construction
Construction • Foundation/Mounting
Power • Commissioning
Conversion
System
• SCADA
• Shipping
Other (not included in
• Grid Integration Equipment
Storage Modules analysis)
• Metering
• Land
Thermal energy storage uses conventional cryogenic technology, compressing and storing air into a liquid form
5 MW – Highview
Thermal (charging) then releasing it at a later time (discharge). Best suited for large-scale applications; the technology is still 20+ years
100 MW+ Power
emerging but has a number of units in early development and operation
Flow batteries store energy through chemically changing the electrolyte (vanadium) or plating zinc (zinc bromide).
Physically, systems typically contain two electrolyte solutions in two separate tanks, circulated through two independent
loops, separated by a membrane. Emerging alternatives allow for simpler and less costly designs utilizing a single tank, Sumitomo,
25 kW –
Flow Battery‡ single loop, and no membrane. UET, Primus 20 years
100 MW+
The subcategories of flow batteries are defined by the chemical composition of the electrolyte solution; the most Power
prevalent of such solutions are vanadium and zinc bromide. Other solutions include zinc chloride, ferrochrome and zinc
chromate
Lead-acid batteries date from the 19th century and are the most common batteries; they are low cost and adaptable to
Enersys, GS
numerous uses (e.g., electric vehicles, off-grid power systems, uninterruptible power supplies, etc.) 5 kW –
Lead Acid‡ Yuasa, East 5 – 10 years
“Advanced” lead-acid battery technology adds ultra-capacitors, increasing efficiency, lifetimes and improve partial state- 2 MW
Penn Mfg.
of-charge operability(2)
Chemical
Lithium-ion batteries have historically been used in electronics and advanced transportation industries; they are
increasingly replacing lead-acid batteries in many applications, and have relatively high energy density, low self- LG Chem,
discharge and high charging efficiency 5 kW – Samsung,
Lithium-Ion‡ 10 years
Lithium-ion systems designed for energy applications are designed to have a higher efficiency and longer life at slower 100 MW+ Panasonic,
discharges, while systems designed for power applications are designed to support faster charging and discharging BYD
rates, requiring extra capital equipment
“High temperature”/“liquid-electrolyte-flow” sodium batteries have high power and energy density and are designed for
1 MW –
Sodium‡ large commercial and utility scale projects; “low temperature” batteries are designed for residential and small NGK 10 years
100 MW+
commercial applications
Zinc batteries cover a wide range of possible technology variations, including metal-air derivatives; they are non-toxic, Fluidic
non-combustible and potentially low cost due to the abundance of the primary metal; however, this technology remains 5 kW – Energy, EOS
Zinc‡ unproven in widespread commercial deployment 100 MW+ Energy
10 years
Storage