Storage as an energy business deal has two basic value streams
  1.. CAPACITY - this is an ancillary services play (all services but mainly
constraint, kVARS) and also the value of avoided cost in line substation
upgrades.
  2.. LOAD SHIFT - peak to off peak
I know little about hydro. I know a good deal about the value of capacity
and load shift. And a good deal about grid interconnect

What I'm trying to determine are the following general issues
  1.. CAPACITY - In a perfect world this unit won't run very much if at all.
It competes with a peaker. Therefore you want to optimize for for first cost
not effeciency. Minimum size would be about 200 kW. General issues, round
trip effeciency, minimum head height, gal per kW, what technology? $ per kW
equipment installed only.
  2.. LOAD SHIFT - This will run every day so effeciency is more important
than first cost. At least 30% round trip effeciency is the hurdle rate. Same
general issue and minimum size, 200kW, round trip effeciency, minimum head
height, gal per kW, what technology? $ per kW equipment installed only.
There is no reason why this storage can't go exist with a seasonal dam or
other unfirm renewable generation.

I'm doing both the deals now with other storage technologies.

Bill Shanner


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