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White paper examines costs, benefits of grid-connected energy storage

The “White Paper Analysis of Utility-Managed, On-Site Energy Storage in Minnesota” report examines the potential costs and benefits of grid-connected electrical energy storage technology located at the utility customer’s home or business. The report, commissioned by the Minnesota Department of Commerce and prepared by Strategen Consulting, includes an overview of energy storage technologies and applications in Minnesota, including both battery and thermal storage. The study team modeled costs and benefits of battery-based standalone storage and storage integrated with solar photovoltaic (PV) and it considered both residential and commercial customer sites.

Four different general operational use cases for energy storage were identified and investigated:
  • Customer controlled for bill savings
  • Utility controlled for distribution system benefits
  • Utility controlled for distribution and market benefits
  • Shared customer and utility controlled for bill savings and market revenue
The project team modeled each use case to calculate project lifetime costs and benefits, performed an analysis of key barriers to implementation, and provided recommendations to address key gaps to energy storage implementation. Read the full report (pdf).