Utilities See Value in Storage Alongside PV, and Will Pay

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Hawaii co-operative turns to storage to integrate renewables
  • Solar plus storage PPAs are falling but system setups vary

Solar plus storage levelized costs of electricity (LCOEs), with varying solar to storage power output ratios

Source: Bloomberg New Energy Finance
Note: These all assume 30% ITC for all years. For underlying data and assumptions, see accompanying spreadsheet.

As utilities add more renewable energy, whether voluntarily or due to mandates, some are turning to energy storage to help integrate it. Alongside wind or solar, storage allows a utility to increase renewable energy generation despite the reduced need for either during peak generation hours. A common way of integrating storage has been via combined storage plus solar power purchase agreements (PPAs). In the U.S., these projects also may benefit from the investment tax credit, which would not otherwise be available to standalone storage projects. Although limited to a few instances to date, we expect the frequency of these deployments will increase, including beyond the U.S.

Clients can access the full report here.

BNEF Shorts are research excerpts available only on the BNEF mobile app and the Bloomberg Terminal, highlighting key findings from our reports. If you would like to learn more about our services, please contact us.

About BloombergNEF

BloombergNEF (BNEF) is a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance and policy professionals navigate change and generate opportunities.
 
Sign up for our free monthly newsletter →

Want to learn how we help our clients put it all together? Contact us