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cost/benefit analysis
the modules be replaced at 10-year intervals. Costs and benefits for these options are
summarized as follows:
Table 4-5. Cost/Benefit of Power Quality Applications
Base Case
Alternate
Power Quality PQ & LL
Initial Installed Cost, M$ 6.0 6.5
Total Cost, M$ (Note 1) 9.9 12.2
Total Benefits, M$ (Note 2) 10.0 15.2
NPV, M$ (Note 3) 0.1 3.0
Notes:
(1) Total Costs: Present value of initial capital, operating, replacement,
taxes and insurance costs
(2) Total Benefits: Present value of avoided costs and revenues
(3) NPV: Total Benefits minus Total Costs
4.2.3 Application 3: 26 MW Automatic Generation Control (200 NAS PQ
Modules)
The base-case AGC application assumes that this service is valued at $20/MWh, based on typical
rates of the New York Independent System Operator (NYISO). The NAS system is equipped
with grid interactive PCS architecture equivalent to DSTATCOM systems and with NAS energy
storage that can deliver 2.6 times rated power (130 kW per module) for up to one hour. Based
on providing AGC for 16 hours per day, 350 days per year, the NPV of this system is negative
($0.8M).
However, if a NAS system also comprised of 200 NAS PQ modules is configured for functional
equivalence with the NiCad-based GVEA BESS (see footnote, page 3-6), the NAS system
appears to be a cost effective alternative, especially when energy density (space cost) is
considered. 6
For this configuration, a NAS system can deliver 40MW at 4 times rated power
(200 kW per module) for up to 15 minutes. The cost of the GVEA BESS is estimated to be
$1220/kW based on initial cost in a temperature controlled space plus capitalized values for
operating, maintenance, taxes and insurance costs. This comparison yields a NPV for the NAS
system of $4.9M. Costs and benefits for these options are summarized as follows:
6
This comparison assumes that NiCad systems are housed in a temperature controlled building, while NAS is in an
exterior enclosure, which would be the case in most of the U.S. In Alaska, NAS would also require interior space
and the NPV would decrease to about $4.1M.
4-4