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Assessing the Techno-Economics and Environmental Attributes of Utility-Scale PV with Battery Energy Storage Systems (PVS) Compared to Conventional Gas Peakers for Providing Firm Capacity in California

Author

Listed:
  • Sashwat Roy

    (Energy & Environmental Policy Program, University of Delaware, Newark, DE 19711, USA)

  • Parikhit Sinha

    (First Solar Inc., Tempe, AZ 85281, USA)

  • Syed Ismat Shah

    (Energy & Environmental Policy Program, University of Delaware, Newark, DE 19711, USA)

Abstract

The United States needs to add at least 20 GW of peaking capacity to its grid over the next 10 years, led by large-scale projects in California, Texas and Arizona. Of that, about 60% must be installed between 2023 and 2027, meaning that the energy storage industry has more time to build an economic advantage by lowering costs and improving performance to compete with conventional gas peakers. In this paper, we assess the technical feasibility of utility-scale PV plus battery energy storage (PVS) to provide high capacity factors during summer peak demand periods using a target period capacity factor (TPCF) framework as an alternative to natural gas peakers. Also, a new metric called “Lifetime Cost of Operation” (LCOO) is introduced to provide a metric, focusing on the raw installation and operational costs of PVS technology compared to natural-gas fired peaker plants (simple cycle or conventional combustion turbine) during the target period window. The target period window is the time period during which it is valuable for power plants to provide firm capacity usually during early or late evening peak demand periods in the summer months (from April to September); a framework for which is increasingly being asked for by utilities in recent request for proposals (RFPs). A 50 MW AC PV system with 60 MW/240 MWh battery storage modelled in California can provide >98% capacity factor over a 7–10 p.m. target period with lower LCOO than a conventional combustion turbine natural gas power plant.

Suggested Citation

  • Sashwat Roy & Parikhit Sinha & Syed Ismat Shah, 2020. "Assessing the Techno-Economics and Environmental Attributes of Utility-Scale PV with Battery Energy Storage Systems (PVS) Compared to Conventional Gas Peakers for Providing Firm Capacity in California," Energies, MDPI, vol. 13(2), pages 1-24, January.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:2:p:488-:d:310573
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    References listed on IDEAS

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    1. Wiser, Ryan & Millstein, Dev & Mai, Trieu & Macknick, Jordan & Carpenter, Alberta & Cohen, Stuart & Cole, Wesley & Frew, Bethany & Heath, Garvin, 2016. "The environmental and public health benefits of achieving high penetrations of solar energy in the United States," Energy, Elsevier, vol. 113(C), pages 472-486.
    2. Kenneth Gillingham & James H. Stock, 2018. "The Cost of Reducing Greenhouse Gas Emissions," Journal of Economic Perspectives, American Economic Association, vol. 32(4), pages 53-72, Fall.
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    Cited by:

    1. Nawaz Edoo & Robert T. F. Ah King, 2021. "Techno-Economic Analysis of Utility-Scale Solar Photovoltaic Plus Battery Power Plant," Energies, MDPI, vol. 14(23), pages 1-22, December.
    2. Marco Raugei & Alessio Peluso & Enrica Leccisi & Vasilis Fthenakis, 2020. "Life-Cycle Carbon Emissions and Energy Return on Investment for 80% Domestic Renewable Electricity with Battery Storage in California (U.S.A.)," Energies, MDPI, vol. 13(15), pages 1-22, August.

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