3 ms·
If they can buy power at $20 and sell it for $50 / MWh, then their 12.5 MWh storage capacity generates $375 / cycle. They'd have to cycle it many times per day
by tlb 11y ago
If they can buy power at $20 and sell it for $50 / MWh, then their 12.5 MWh storage capacity generates $375 / cycle. They'd have to cycle it many times per day to make significant amounts of money. Does the grid require more than 1 or 2 cycles per day? (Solar cycles once / day, domestic demand has 2 peaks).
- dragontamer 11y ago> Kelly also said that the economics of the Nevada project will be aided by recent pricing trends at CAISO, which has been seeing negative pricing from over generation from wind power at night and from solar power in the morning. Under those circumstances, the ARES project could be paid to take power off the grid, Kelly said. Its cheaper to keep running a Wind Turbine and PAY to put energy onto the grid, than to actually power-off a Wind Turbine. If those Turbines stop spinning, its very, very difficult to get them spinning again. But someone needs to "take" the energy. This ARES project is going to be paid in both directions. They profit as Wind / Solar farms pay for the privilege for their excess energy to be stored somewhere, and then they profit later in the day as they sell the energy back to the grid.
- marcosdumay 11y agoWell, you only have to compare it against the capital required by the project. If it is too small to get you any money, it's still large enough to build as a part of something else, or to build a lot of replicas. But yes, with a capital requirement of “a little under $55 million”, there's either some misreporting around, or this thing is a big no go.