Wind is an intermittent source of electricity. If the electricity from a wind plant could be economicallystored, it would increase the market value of the electricity. This increase in the market value of windelectricity would be realized in: 1. Capacity payments; 2. Avoidance of out of balance payments duringthe transmission of wind electricity; 3. Extra revenue earned by selling the wind electricity at the peakprice in a time of day pricing tariff. The increase in the market value has to be greater than the cost ofstoring the wind electricity.The storage of wind electricity as hydrogen has been proposed. This paper discusses the technical andfinancial principles underlying the levelized cost method of computing the cost of wind electricity storedin a model Hydrogen Storage System (HSS) located next to a model Colorado Wind Plant (WP). Topicsinclude wind plant intermittency, the HSS technology, the electric energy storage cycle (charging,storage, discharge), the levelized cost method, sizing the HSS for a specific wind plant, HSS storage cycleefficiency, HSS capacity cost, energy revenue, capacity revenue, peak pricing, depreciation, cost ofcapital, fixed and variable operating and maintenance costs.This paper presents two worksheets with benchmark variable values; “Computing the Capacity (MW),Capacity Cost ($/MW) and Storage Cycle Efficiency (%) of a Model HSS" and a “Computing theLevelized Cost ($/MWh) of Wind Electricity Stored in a Model HSS”. This paper discusses thesebenchmark values as it analyzes the worksheets. Readers can use the worksheet with their own variablevalues to compute the levelized cost of stored wind electricity.This paper concludes that, even though it is technically possible, based on the current capacity cost andstorage cycle efficiency of HSS technology, wind electricity can not be economically stored in a HSS.
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