3. Energy Storage and Flexibility

Storage Economics — Quiz

Test your understanding of storage economics with 5 practice questions.

Practice Questions

Question 1

Given a storage project with a capital expenditure (CAPEX) of \500{,}000, a discount rate of 8\%, and a project life of 10 years, what is the approximate annualized capital cost?

Question 2

Under the storage-specific definition of Levelized Cost of Storage (LCOS), which cost element is often excluded?

Question 3

Which revenue stream provides payment for energy storage systems to restore power after a blackout without external supply?

Question 4

If a storage asset earns annual revenue of \$20{,}000 from arbitrage, \$15{,}000 from frequency regulation, and \10{,}000 from capacity payments, what is its total annual revenue when value stacking?

Question 5

Given a storage project with CAPEX = \$200{,}000, annual OPEX = \$5{,}000, discount rate = 5\%, project life = 10 years, and an annual energy throughput of 250 cycles × 100 kWh, what is the approximate Levelized Cost of Storage (LCOS) in \/kWh?