How does capacity value affect energy value?

The decline in capacity value is not as large as the decline in energy value, so capacity value contributes an increasing portion of the total value over time. Consequently, the method of determining capacity value—both the capacity credit approximation and the translation of firm capacity to dollar value—becomes more important.

Is energy storage undervalued?

Consequently, the energy storage component is likely undervalued. Capacity credit is the portion of nameplate capacity that can be relied on to contribute to firm capacity (i.e., the capacity that counts toward the planning reserve margin). All O&M costs for both PV and battery systems are fixed, so variable O&M costs are zero.

How many mw can a DC-coupled inverter power a firm?

However, the shared bidirectional inverter of the DC-coupled systems limits their firm capacity to 77 MW, even if the separate systems have more total firm capacity.

How do the energy values of PV architectures converge?

First, the energy values of the three architectures converge as an increasing fraction of energy from the coupled PV is used to charge the battery. Second, their capacity values converge to that of the battery as the capacity credit of stand-alone PV approaches zero.

How does PV penetration change over time?

As PV penetration increases over time—based on the evolution of the bulk power system—two trends emerge that indicate a convergence of the values of the systems studied. First, the energy values of the three architectures converge as an increasing fraction of energy from the coupled PV is used to charge the battery.

What is the capacity value trend over time?

The capacity value trend over time follows the energy value trend in that the suboptimal design of certain components limits value compared to separate systems. In early years, the shared bidirectional inverter reduces the capacity value of DC-coupled systems compared to separate and AC-coupled systems.