What is levelized cost of Storage (LCOS)?

of Levelized Cost of Storage (LCOS), it is essential to evaluate the electricity purchasing cost and the total electricity generated. studies. In this paper, a price arbitrage algorithm is developed, according to which decisions are made at each time step whether to charge, discharge or stand by.

What is Lazard's LCoS?

Lazard’s LCOS examines the cost of energy storage in the context of its specific applications on the grid and behind-the-meter; each use case analyzed herein, and presented below, represents an application of energy storage that market participants are utilizing now or will be utilizing in the near future

What is levelized cost of electricity (LCOE)?

For conventional generation technologies, the levelized cost of electricity (LCOE) is a well-known metric. In the context of electricity storage however, such LCOE-like metrics are only limitedly applicable as the finite energy storage capacity can limit the charge and discharge scheduling decisions of the storage operator.

What is levelized cost of delivery (lcod)?

Together with the levelized cost component of the iRES capacity, they come to a metric termed the Levelized Cost of Delivery (LCOD), which, although analyzed in a different manner, sums up to a similar metric as Pawel (2013) introduced. Poonpun and Jewell (2008) calculate a storage cost as a cost added to each kWh of stored energy.

Why is storage efficiency neglected in LCoS metrics?

Storage efficiency is implicitly neglected when the charging cost is not accounted for. LCOS metrics independent of the charging cost are most broadly applicable. Limited energy capacity might limit storage dispatchability. Limited dispatchability leads to distorted conclusions when using LCOS metrics.

What are LCoS capital costs?

Capital costs reported are based on year 1 costs for systems designed for all LCOS use cases. Capital cost units are the total investment divided by the storage equipment’s energy capacity (kWh rating) and inverter rating (kW rating). Capital cost outlook represents average expected cost reductions across use cases.