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CEIC-09-04

"The Air Quality and Human Health Effects of Integrating Utility-Scale Batteries into the New York State Electricity Grid"
By Elisabeth A. Gilmore, Jay Apt, Rahul Walawalkar , Peter J. Adams and Lester B. Lave

Abstract:
In a restructured electricity market, utility-scale energy storage technologies such as advanced batteries can generate revenue through energy arbitrage by charging when prices are low and discharging when electricity prices are high. This strategy also changes the magnitude and distribution of air quality emissions, ambient concentrations, human health effects and social costs and benefits. We evaluate these effects with a case study of 500 MW sodium-sulfur battery installations with 80% roundtrip efficiency displacing peak electricity generators in New York City from 1 – 5 pm and charging using off-peak generation in the New York Independent System Operator (NYISO) electricity grid from 1 – 6 am during summer. First, we map displaced and charging plant types to generators in the NYISO. Second, we convert the changes in emissions into ambient concentrations with a chemical transport model, the Particulate Matter Comprehensive Air Quality Model with extensions (PMCAMx). Finally, we transform the concentrations into their equivalent human health effects and social benefits and costs. Focusing on the relationship between premature mortality and fine particulate matter (PM2.5), we calculate a benefit of 4.5 ¢/kWh and 17 ¢/kWh from displacing a natural gas and distillate fuel oil fueled peaking plant, respectively, in New York City. By contrast, ozone (O3) concentrations increase due to the decrease in nitrogen oxide (NOx) emissions, although the magnitude of the social cost is less certain. Adding the air quality costs from charging, we find that displacing a distillate fuel oil peaking plant yields a net social benefit, while displacing the natural gas peaking plant has a net social cost. Additionally, by using the present base-load capacity for charging, the upstate population experiences an increase in adverse health effects. If wind generation is utilized to charge the battery, both the upstate charging location and New York City would benefit. The Air Quality and Human Health Effects of Integrating Utility-Scale Batteries into the New York State Electricity Grid

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