http://www.brattle.com/system/news/..._Distributed_Electricity_Storage_in_Texas.pdf
Our analysis shows that deploying electricity storage on distribution systems across Texas could provide substantial net benefits to the state. We estimate that up to 5,000 MW (15,000 MWh, assuming a three-to-one ratio of storage to discharge capability) of grid-integrated, distributed electricity storage would be cost effective from an ERCOT system-wide societal perspective based on a forecast of installed cost of storage of approximately $350/kWh. Our analysis assumes that the storage deployment plan will be developed to capture as much benefits as possible by integrating value from increasing customer reliability, improving the T&D systems, and transacting in the wholesale power markets. Our analysis accounts for the net impact that deploying storage would have on generation investments in ERCOT’s “energy-only” wholesale electricity market. The resulting generation investment response sustains market prices sufficient to support the development of the generating capacity necessary to maintain ERCOT’s resource adequacy.
We also evaluate the benefits of grid-integrated storage deployed by TDSPs from an average
electricity customer’s perspective. Our analysis shows that deploying 3,000 MW (9,000 MWh) of storage across ERCOT (with 1,000 MW on Oncor’s system) would reduce residential customer bills slightly and provide additional reliability benefits in the form of reduced power outages for customers located in areas where storage is installed. Considering both the impact on electricity bills and improved reliability of grid-integrated storage, total customer benefits would significantly exceed costs. However, while beneficial from an integrated, system-wide
perspective, an efficient scale of storage deployment would not be reached if deployed solely by
merchant developers in the wholesale market, by retail customers, or only for capturing T&D
benefits.
Storage investments could not be undertaken at an efficient scale solely by merchant developers in the Texas restructured electricity market because the value that a merchant storage developer can capture and monetize through transacting in the wholesale power market alone is too low compared to costs. For instance, we find that approximately 30–40% of the total system-wide benefits of storage investments are associated with reliability, transmission, and distribution functions that are not reflected in wholesale market prices and, therefore, cannot be captured by meutility mrchant storage investors. Even at the low projected storage costs, the opportunity to arbitrage wholesale power market prices and sell ancillary services would not likely attract merchant storage investments at a significant scale. This means that relying only on merchant investors to develop storage in ERCOT would result in under-investment in storage from a state-wide perspective. Moreover, without being integrated in T&D planning and operations, merchant electricity storage would be under-utilized and unable to capture the high additional value offered by targeted deployment within the state’s transmission and distribution systems.
Well, Mr. Bripat, I think these people's opinions carry more weight.
