Analysis of the value of battery storage with wind and photovoltaic generation to the Sacramento Municipal Utility District

This report describes the results of an analysis to determine the economic and operational value of battery storage to wind and photovoltaic (PV) generation technologies to the Sacramento Municipal Utility District (SMUD) system. The analysis approach consisted of performing a benefit-cost economic assessment using established SMUD financial parameters, system expansion plans, and current system operating procedures. This report presents the results of the analysis. Section 2 describes expected wind and PV plant performance. Section 3 describes expected benefits to SMUD associated with employing battery storage. Section 4 presents preliminary benefit-cost results for battery storage added at the Solano wind plant and the Hedge PV plant. Section 5 presents conclusions and recommendations resulting from this analysis. The results of this analysis should be reviewed subject to the following caveat. The assumptions and data used in developing these results were based on reports available from and interaction with appropriate SMUD operating, planning, and design personnel in 1994 and early 1995 and are compatible with financial assumptions and system expansion plans as of that time. Assumptions and SMUD expansion plans have changed since then. In particular, SMUD did not install the additional 45 MW of wind that was planned for 1996. Current SMUD expansion plans and assumptions should be obtained from appropriate SMUD personnel