My paper, A Financial Algorithm for Computing the Levelized Cost (US$/MWh; €/MWh) of Storing Wind Electricity (LCOS), was presented at WindPower 2018, 7-10 May, Chicago.
Abstract — This paper discusses the financial and technical principles underlying the levelized cost (LC) method of computing the cost of storing wind electricity (LCOS). The paper presents a CL algorithm. The algorithm equations are presented. The algorithm uses nine recognized energy storage system (ESS) specifications (specs) to compute the levelized cost of the stored Wind electricity. Published specs for the Eos Aurora® and Cabin Creek Pumped Storage ESS are used in case studies to demonstrate the algorithm. Other case studies are provided. For rapid computation, an Excel worksheet is provided. The goal of this paper is to present a standard computational algorithm for financial analysts to use. A financial analyst can do a LC computation based on the paper’s LCOS algorithm and on the algorithm’s nine ESS specs. The paper’s LCOS algorithm gives the analyst who has the nine ESS spec values, a quick “back of the envelope” verification of a developer’s (utility-scale), manufacturer’s (C & I; residential), or researcher’s (prototype) value for the levelized cost ($/MWh; €/MWh) of the stored electricity (LCOS)