Battery Valuation Methodology

Question 1

data collection

Answer 1

nodal
utility rate, epa, eia, iso
resource characteristics

Question 2

forecasting

Answer 2

econometric and ai
price forecast: fuel, energy, ancillary
demand, solar/wind forecasting

Question 3

npv and dcf

Answer 3

capital costs & o&m
annual sales and purchases
financial and tax terms
dcf
npv

Question 4

stacked services emulation

Answer 4

hourly and subhourly historical and forecast dispatch with stacked services
asset simulations for sales, purchases, and p&l

Question 5

forecast view

Answer 5

base, optimistic, pessimistic

Question 6

econometric price forecasting

Answer 6

methods: implied heat rate (may not work as well once get renewables)
inputs: historical prices
outputs: fuel price forecast, electricity price forecast

Question 7

fundamentals price forecasting

Answer 7

methods: production cost and capacity optimization
inputs: load profile/forecast,
generation existing, planned builds/retirements
fuel prices
transmission constraints
outputs: hourly/sub-hourly energy prices
ancillary services prices
capacity prices

Question 8

npv source

Answer 8

software, capex, opex

Question 9

npv cash flow

Answer 9

revenue, charging cost, epc,
repowering, fixed opex,
variable opex, ess scheduling costs,
land lease cost, insurance cost,
property tax

Question 10

npv calculation

Answer 10

opex cash flow
cumulative cash flow

Question 11

npv result

Answer 11

irr, npv

Question 12

scan which are best nodes

Answer 12

value proposition

Question 13

cost per mw

Answer 13

total installed cost of system divided by instantaneous output power rating of system

Question 14

cost per MWh

Answer 14

cost of system divided by energy output

Question 15

2-factor cost model

Answer 15

kw vs kWh