Creating a Storage Business Assessment Tool

Navigant created a tool for TenneT to provide a deeper understanding of storage project viability and drivers

Challenge

TenneT, a Dutch TSO, wanted to engage with its stakeholders on the economic viability and various design options of a large-scale storage project. Many investors have a keen interest to develop storage projects, but do not always see the potential business case across various technologies, potential future cost reductions, and the uncertainty of market prices. 

Solution

Navigant Consulting, Inc. developed a tool that allows users to set almost 50 parameters, ranging from size, technological performance, taxes, (re-)investment parameters, market price series, and more to asses storage opportunities. Eight projects (batteries, pumped hydro, CAES, hydrogen) are predefined as the starting point. The model optimizes storage dispatched across multiple market price series based on hourly series. Predefined market series are frequency containment reserve (FCR), automatic frequency restoration reserve (aFRR), and day ahead markets. Historic price series can be used, adapted in terms of volatility, or can be created completely new by the user. The output is a detailed cash flow analysis and a net present value (NPV) breakdown, including sensitivities and comparisons across design options.

Impact

TenneT now offers a complete, user-friendly tool to all interested parties to gain a deeper understanding of the business case potential. The tool is made publicly available by TenneT and used in stakeholder engagements. It offers any user (expert or not) an intuitive means to gain deeper understanding in the viability of storage projects and main drivers. The tool is available here.

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