<div dir="ltr">Hi all,<div><br></div><div>I revised the battery storage document for tomorrow's meeting. </div><div>I changed capital cost data and now RESOLVE inputs are close to ATB capital costs. Compared with ATB scenarios, SWITCH capital costs are significantly higher.</div><div>As Sarah pointed out, setting a reasonable discount rate is important. Therefore I calculated annualized capital costs for 7% and 2.5% (ATB case) discount rates.</div><div><br></div><div>(FIY, ATB website provides excel and csv files, and the csv file, which I used for the first analysis, has various problems such as lacking data. </div><div>I recommend using an excel file instead. )</div><div><br></div><div>Best regards,</div><div>Kenji</div></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Sep 23, 2020 at 12:23 AM Kenji Shiraishi <<a href="mailto:kenjis@berkeley.edu">kenjis@berkeley.edu</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"><div dir="ltr"><div><div dir="ltr"><div dir="ltr"><div>Hi Sarah,</div><div><br></div><div>Thank you very much for the critical points. I used the "CAPEX" (M10 to AR16), but I should have used power capital costs (such as AX20 through something like BT20), instead.</div><div>The "CAPEX" that I used is the summary of both battery energy capital costs and battery power capital costs. I misunderstood the definition of CAPEX. </div><div><br></div><div>I will revise the document tomorrow morning and send it to you. Annualized power capital costs will be much closer to the number of RESOLVE. </div><div><br></div><div>Best regards,</div><div>Kenji</div><div><br></div><div><br></div></div></div></div><br></div><br><div class="gmail_quote"><div dir="ltr" class="gmail_attr">On Wed, Sep 23, 2020 at 12:02 AM Sarah Kurtz <<a href="mailto:skurtz@ucmerced.edu" target="_blank">skurtz@ucmerced.edu</a>> wrote:<br></div><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
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<p class="MsoNormal">Hi, Kenji,<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">This is a super nice summary.<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">I’m getting somewhat different results from the ATB.<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
<p class="MsoNormal">First, we might talk about whether 7% is still the right number for the discount rate.
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<p class="MsoNormal">But, when I annualize the ATB numbers, I get substantially lower numbers than you do. I wonder if we are using different versions.<u></u><u></u></p>
<p class="MsoNormal">I see Capex in $/kW for 4 hr battery and 2 hr batteries in cells M10 to AR16.<u></u><u></u></p>
<p class="MsoNormal">Then, I see that someone has used those numbers to derive both $/kWh and $/kW with those being listed in cells AX10 through something like BT22.<u></u><u></u></p>
<p class="MsoNormal">If I use the 4 hr battery numbers I get something like what you get, but if I use the $/kWh and $/kW that are on the far right, I get different numbers.<u></u><u></u></p>
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<p class="MsoNormal">Sarah<u></u><u></u></p>
<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal"><b><span style="font-size:12pt;color:black">From: </span></b><span style="font-size:12pt;color:black">LDES-coremodel <<a href="mailto:ldes-coremodel-bounces@lists.ucmerced.edu" target="_blank">ldes-coremodel-bounces@lists.ucmerced.edu</a>> on behalf of Kenji Shiraishi <<a href="mailto:kenjis@berkeley.edu" target="_blank">kenjis@berkeley.edu</a>><br>
<b>Date: </b>Tuesday, September 22, 2020 at 11:40 PM<br>
<b>To: </b>"<a href="mailto:ldes-coremodel@lists.ucmerced.edu" target="_blank">ldes-coremodel@lists.ucmerced.edu</a>" <<a href="mailto:ldes-coremodel@lists.ucmerced.edu" target="_blank">ldes-coremodel@lists.ucmerced.edu</a>><br>
<b>Subject: </b>[LDES-coremodel] Battery storage cost projections<u></u><u></u></span></p>
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<p class="MsoNormal">Hi all,<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">I have summarized the battery storage cost projection of NREL ATB 2020 as attached. <u></u><u></u></p>
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<p class="MsoNormal">It would be great if you could skim it before our regular meeting. <u></u><u></u></p>
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<p class="MsoNormal">Based on their scenario description, Moderate scenario seems appropriate as the base case scenario of SWITCH. Costs in Moderate scenario is about 2/3 of current SWITCH model. It is partly because of the difference in lifetime (ATB assumes
15 years, while SWITCH assumes 10 years.)<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">The costs inputs of RESOLVE are much lower than those in Advanced scenarios of ATB. I would like to talk about the units of the cost inputs in the next meeting.<u></u><u></u></p>
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<p class="MsoNormal"><u></u> <u></u></p>
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<p class="MsoNormal">Best regards,<u></u><u></u></p>
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<p class="MsoNormal">Kenji<u></u><u></u></p>
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<p class="MsoNormal"><br clear="all">
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<p class="MsoNormal">---<br>
Kenji Shiraishi<br>
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Researcher,<br>
Renewable and Appropriate Energy Laboratory (RAEL)<br>
450 Sutardja Dai Hall<br>
Ph.D. student, Goldman School of Public Policy (GSPP)<br>
University of California, Berkeley<br>
<br>
<a href="https://rael.berkeley.edu/people/shiraishi-kenji/" target="_blank">https://rael.berkeley.edu/people/shiraishi-kenji/</a><u></u><u></u></p>
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<p class="MsoNormal"><a href="https://www.kenjishiraishi.com/" target="_blank">https://www.kenjishiraishi.com/</a><u></u><u></u></p>
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