Battery Energy Pricing Model

The Battery Energy Pricing Model calculates the required energy price for an industrial-scale battery. The model allows you to find out how much would be the extra electricity costs per kWh when adding a battery to a solar park or similar or a similar renewable energy project. The model requires the definition of a target Internal Rate of Return (IRR) your battery project should show. Based on this return, a macro is used to calculate the required Energy Sales Price. This price can be added as a premium to e.g. the electricity costs in kWh of e.g. a solar park to compensate for the additional energy security provided by the battery.

,
, , , , , , , , , , , , ,

 

If you ever wanted to know how expensive it would be to add a battery to a solar park, you will need this Battery Energy Pricing Model. This model schedules the installed battery capacity and their planned replacement to provide steady battery capacity over a forecast horizon of up to 30 years.

Installing a battery for a solar park can be quite expensive. This model allows you to estimate the costs of such a battery project and by assuming a target IRR work backward on what the required electricity price needs to be.

 

The Excel Spreadsheet model template consists of the following:

  • Assumption Sheet – contains the general settings and assumptions of this model such as the model’s currency (e.g. USD or EUR), inflation assumption, tax rate, and many more assumptions.
  • Executive Summary Sheet – contains a summary of the forecast capacity, energy storage, and sales volumes, forecasted Profit and Loss, Free Cash Flow Forecast, and Financial Metrics Summary. The Executive Summary sheet also contains a Calculator to calculate the required Electricity price. A sensitivity analysis is included as well.
  • Capacity Fading Worksheet – to calculate the expected Battery Capacity Index assuming the battery capacity will fade out over time
  • Battery Block – here you can enter the specs of every Battery Block you add to the Battery and when it will come online as well as the capital expenditures per Battery Block.
  • Forecast – includes a forecast for up to 30 years with the expected energy storage and sales volume, profit and loss, debt schedule, free cash flow forecast, calculation of Net Working Capital, Depreciation, and similar financials.

 

There are also worksheets with all Terms used and Instructions on how to use the Spreadsheet Model included.

The model is a fully editable MS Excel spreadsheet and this model contains a Macro. A Macro Documentation is provided as well.

File Type:

  • 1 Full Excel Template – .xlsm (Macro enabled Workbook in MS Excel)
  • 1 PDF Macro Documentation – .pdf
  • 1 PDF Demo – Free PDF version of the model

 

You must log in to submit a review.