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• Power quality benefits result primarily from reliable service, i.e., the avoidance of outages.
The cost of outages varies, of course, by user, and is estimated by events. The high and low
in this case result from a small number of events of low-value events per year to a significant
number of high-value events.
• Load-leveling benefits, or arbitrage benefits, result from the differential between the cost of
on-peak and off-peak power. This varies widely by location and season. Typical values are
quoted.
Table VIII shows Benefit/Cost Ratios based on the Present Value of Benefits listed in Table VII
and costs listed in Tables V and VI. Present Value was calculated for the specific system ratings
indicated using a discount rate of 7%..
Table VII
Estimated Benefits for SMES T&D Applications
System Stabilization
(transmission deferral)
Low Estimate Low Ref High Estimate High Ref
$20/kW/year 1 $150/kW/year 3
Power Quality (reliability) $50/kW/yr 2 $250/KW/yr 4
Load-levelling $65/kW/year 5 $1000/kW/year 6
Table VIII
Benefit Cost Ratios for fixed-size SMES in T&D Applications
Application Present -day
or FOAK
Cost, $
System
NOAK
Cost, $
Stability 2.4 M 2M
Power
quality 800 Κ 420 K
Load
leveling NA 1,005 M
NPV
Benefits,
Low, $
NPV
Benefits,
High, $
BC Ratio,
FOAK or
Present
BC Ratio,
NOAK
6.36x10 5 4.77x10 6 .265 - 2.0 .32 - 2.38
5.30x10 5 2.65x10 6 .66 - 3.31 1.26 - 6.31
6.89x10 8 .685 -
1.06x10 10 NA 10.55
References for Benefits Table VII
1. J. DeSteese, et al “Benefit/Cost Comparisons of SMES in System-Specific Application
Scenarios,” Proc. World Congress on Superconductivity, Munich, Germany, September, 1992.
2. S. Schoenung, “Superconducting Magnetic Energy Storage Benefits Assessment for Niagara
Mohawk Power Corporation,” report prepared for Oak Ridge National Laboratory, DE-AC05-
840R21400, 1994.
3. Zaininger, SAND98-1904 (SMUD Wind and PV study)
4. Calculations by P. Symons for private-sector client
SMES Page 20