Battery Storage Economics: Arbitrage, Degradation & LCOS

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Describe four batteries, from a home unit to a 4-hour grid system, by their duration, C-rate and usable energy, and check how long each can supply a load.
• Compare four storage technologies by the energy they need to deliver one cycle, their losses, the efficiency including auxiliaries and what the losses cost per year.
• Chart a day of hourly power prices, pick the four cheapest and four priciest hours with SMALL and LARGE, and calculate what a 20 MW / 80 MWh battery earns from the spread.
• Calculate how many full cycles the Northfield battery runs per year, combine calendar and cycle fade into an annual capacity loss, project its state of health for 15 years and find when it crosses the 80 % end-of-life line.
• Build five years of stacked revenue for a 50 MW / 100 MWh battery from three streams and show the changing mix in a stacked column chart.
• Simulate a 12 kWh home battery month by month: how much solar surplus it can store, what it delivers in the evening, what that saves, and the simple payback.
• Build a 15-year cost and energy table for the Northfield 2 battery and calculate its levelised cost of storage per MWh delivered.
• Turn the Northfield 2 revenue stack into a 15-year project cash flow, calculate the NPV at 8 % and find the year in which the cumulative cash flow turns positive.