The price of
energy storage is decreasing rapidly, making it increasingly useful as a tool
to manage peak demand, defer capital investments, and provide reserves services
to the bulk power system. To assist cooperatives with calculating the costs and
benefits of applying energy storage to their systems, NRECA has produced three
analytical models to determine the value of energy storage for peak demand
management, deferring capital investments, and arbitraging different energy
prices. This advisory explains the models and how they were developed and
tested with the help of White River Valley EC and the support of the U.S.
Department of Energy.