Energy Storage Peak Shaving Feasibility: Case Studies in Upstate New York

TL;DR

This study evaluates the economic feasibility of using battery energy storage systems for peak shaving in New York's municipal utilities, showing potential cost savings and future cost reductions.

Contribution

It provides a benefit-cost analysis of BESS for municipal utilities in New York, highlighting its current and future cost-effectiveness for peak shaving.

Findings

BESS can be cost-effective for some utilities.

Cost-effectiveness improves as battery prices decrease.

Energy storage reduces utility costs during peak periods.

Abstract

This paper presents the results of a benefit-cost analysis involving the application of battery energy storage systems (BESS) for three of New York State's municipal electric departments (MEDs). New York's municipal electric utilities generally have allocations to receive hydroelectric energy from the New York Power Authority (NYPA). When the NYPA firm hydro allocation is exceeded, the utility must procure energy from other sources, generally at significantly higher prices. Additionally, the municipal utility pays to transmit the energy from the generation source to the utility gateway. There are multiple ways that these MED's can use energy storage technology to reduce their costs. This paper develops benefit and cost analyses, and concludes that BESS technology is cost-effective in some cases, and will become more cost-effective in the future as battery prices decrease.