Environmental Engineering Reference
In-Depth Information
Site work
7%
Non-repeat
engineering
support
17%
NAS battery
45%
PCS & system
integration
21%
Battery
enclosures
4%
Factory-to-site
costs
6%
FIGURE 6.3
Major cost components for installed NaS-based DESS. (Courtesy of NGK Insulators Ltd.)
Figure 6.3 provides a breakdown of the associated costs for the instal-
lation of the DESS. The other costs included the NaS batteries purchased
from NGK (Nagoya, Japan), the power conversion system (PCS), built and
installed by S&C Electric Company, and the 17-foot high steel enclosures
that hold 20 NaS batteries. As is the case with initial implementations of new
technologies, the cost of this DESS installation was affected by some fac-
tors unique to first installations and represent costs not expected in future
installations.
Rationale for Using NaS-Based DESS
Any company must ask several questions when considering the purchase
of a new capital asset, especially one involving new technology: (1) Is the
purchase warranted? (2) What are the current limitations of our infrastruc-
ture and what future problems may we encounter? (3) What benefits will our
company gain? (4) Are there cheaper alternatives? In addition to these issues,
AEP is experiencing exponential growth in the number of customer-owned
distributed generation (DG) systems that are requesting connections to the
grid. These DG systems were made possible by the advances in cost and effi-
ciency of many renewable energy systems (solar panels, wind turbines, etc.).
Among the operational challenges that AEP faces are: (1) non-optimized
location of generation, (2) uncertain availability of generation, (3) low reli-
ability of available generation, (4) inadequate dispatching or scheduling con-
trol over generation, and (5) safety concerns related to energy backfeed. After
evaluating the benefits, strengths, and weaknesses of various solutions, AEP
concluded that energy storage would allow grid operators to maintain con-
trol over the grid, improve service reliability, and would accrue benefits from
the presence of the customer-owned DGs on the grid. The most cost-effective
product on the market was the NaS-based DESS.
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