Nevada could cost-effectively deploy between 750MW and 1,000MW of energy storage by 2030, according to an economic study commissioned by the state’s rulemakers to investigate the potential for the technology.
Massachusetts, California, New York and Arizona are among the US states to have already implemented or closely investigated the implementation of procurement targets for energy storage, mainly by utilities. A 2017 Nevada Senate Bill, SB204, ordered the state Public Utilities Commission of Nevada (PUCN) to determine whether biennial targets for energy storage deployment by electric utility entities would be in the public interest.
To that end, the PUC and the Nevada Governor’s Office of Energy (GOE) commissioned economists from Brattle Group to produce the study, ‘The economic potential for energy storage in Nevada’, a 90+ page document which has been filed as a docket by PUCN.
Brattle took into account numerous variables in its modelling, including the use of energy storage systems for ‘stacked applications’ i.e. for providing multiple services, the impact of cost savings made by generating and storing power during low-priced hours and looked at various different applications and their value to the Nevada network.
Essentially, Nevada’s future power mix could cost-effectively incorporate storage, the study found, although deployment levels vary under the different market scenarios modelled by Brattle. At the low end, where battery and other costs remain relatively high, some 700MW of storage could be deployed cost-effectively, while if high end expectations on cost reduction are proven correct, the figure could be closer to 1,000MW. In other words, while the analysis found that energy storage, which could include other technologies as well as advanced battery storage, could be a useful addition to Nevada’s networks and for consumers, much depends on the future cost declines of the technology and its deployment.
The economists also made the prediction that behind-the-meter (BTM) storage will carry a compelling business case, although opportunities may be fairly limited compared to booming markets for C&I energy storage such as California. Brattle predicts that without any supporting incentive programmes, around 7MW of storage could be deployed cost-effectively BTM, rising to 31MW by 2030. The addition of incentive programmes could boost this figure by between 6MW and 39MW.
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