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Open Access Publications from the University of California

Deliverable Report: Cost-Benefit Analysis of Additional Energy Storage Procurement


The present project aims to provide information on the preferred configuration of energy storage technologies for supporting a decarbonized California electricity system. Energy storage technologies have been identified as critical for enabling compliance with California’s electricity decarbonization goals. While lithium-ion batteries are currently the leading option for meeting energy storage needs, particularly in the near term, a diverse array of other commercial or near-commercial energy storage technologies are available that have characteristics better suited to meet the particular needs of a future electricity system.

In this context, the present project aims to determine which energy storage technologies are best suited to serve different functions required to operate a future, decarbonized electricity system in California and elucidate how energy storage technology characteristics map to their suitability for different applications. This will be accomplished by meeting the following objectives:

  Determine the net costs associated with deploying different energy storage technology portfolios to facilitate an electricity system that complies with SB 100 goals and IRP targets.

  Compare the costs and benefits associated with the use of different energy storage technology portfolios in terms of expenditures and system-wide electricity system operations.

  Determine the energy storage characteristics that are better suited for providing different grid services at a minimal net cost.

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