ABSTRACT
Similar to how the previous chapter focuses on PV resources, this chapter focuses solely on the battery storage resources that our utility has decided are needed to serve 100% of its GWh load by the target year. A projection of battery storage installed costs through the year 2030 is presented first. Then, a look is taken at the tax credits for battery storage that were provided by the 2022 Inflation Reduction Act (IRA) legislation. This includes a discussion of why the 2022 IRA tax credits may lead utilities to install more PV MW than battery MW. The duration of batteries, and the relationship between battery duration and battery firm capacity value, is examined next. A method is presented to determine what the needed duration of an incremental battery addition is. Our utility sees that the needed battery duration increases as more battery MW are added and that this has cost implications.
