CEE 5200
Utility-scale battery economics at DeCordova
Result in one line
A levelized cost of storage of $166.79 per MWh, traced to non-modular design rather than to regulation.
Context
- Course
- CEE 5200
- Semester
- Spring 2025
- Team
- Jakobi Davis, Adigun Olusola
- My part
- Project lead. I did all of the levelized cost of storage math, and delivered most of the final presentation.
The problem
People often blame market rules for holding big batteries back. I wanted to test that on one real plant. We took the DeCordova battery facility in Granbury, Texas, broke down what it actually costs, and checked how much of that the rules explain.
What we built
I calculated the levelized cost of storage for DeCordova in Python, using 2023 ERCOT real-time market data. Then we compared it to Moss Landing in California's CAISO market, and worked through ERCOT's NPRR 1186 and the storage incentives in the Inflation Reduction Act.
What we found
- Levelized cost of storage, per MWh$166.79
- ERCOT rule examinedNPRR 1186
- ERCOT compared against CAISO2 markets
DeCordova comes out to $166.79 per MWh, well above the market average. The main reason is the design. The plant isn't modular, so it carries costs a modular build would avoid.
Moss Landing runs into the same problems in a completely different market. The rules shape how a battery gets paid. They don't explain why this one costs so much to build and run.
Where it stops working
This is one facility, so the number isn't an industry average. The rules have also kept changing since we did this, which could shift how a plant like this earns money. It wouldn't change what it costs.