Hospital ESS 3 MWh — Use Case & Total Cost of Ownership (Australia)

Verdict. NPV = −AU$1,629,328; simple payback = none within 20 years; discounted payback = none within 20 years; LCOS = AU$0.2880/kWh. Equipment: 3 MWh BESS modelled as a Tesla Megapack 2 XL / Sungrow ST2752UX-equivalent commercial LFP product family. Location: Australian hospital site (mid-sized, grid-connected). Horizon: 20 years. Discount rate: 7.00% real. Evidence date: 2026-09-22 (TradVolt internal model run). Limitation: figures are computed only for the explicit bounded inputs in the Inputs table; no claim of generalisability to other hospitals, tariffs, or OEM configurations.

Decision table — computed scenario outcome
IndicatorValueImplication for procurement
NPV (AUD)-1,629,328Project is not financially justified on the modelled cost/benefit set; PV of benefits does not offset capex plus augmentation over 20 years at 7.00% discount.
IRR-0.1218 (-12.18%)Below any commercial hurdle rate; project does not earn back capital on undiscounted basis within horizon.
Simple payback (years)— (not reached)Cumulative undiscounted net cash flow remains negative through Year 20.
Discounted payback (years)— (not reached)Discounted cumulative net cash flow remains negative through Year 20.
LCOS (AUD/kWh)0.2880Levelised cost per kWh delivered = PV of total cost / total kWh delivered (both discounted at 7.00%) — basis stated, formula applied.
Total undiscounted cost (AUD)2,756,698.07Capex + opex + augmentation, undiscounted.
Total discounted cost / PV of costs (AUD)2,359,163.26Same cost stream at 7.00% discount.
Total undiscounted benefit (AUD)1,319,263.96Demand + arbitrage benefits over 20 years, undiscounted.
Total discounted benefit (AUD)729,835.08Same benefit stream at 7.00% discount.

This page presents the computed TCO and cash-flow tables for the scenario, the explicit bounded inputs, the equipment-family designation, and the limitations of the result. No procurement recommendation is offered beyond what the numbers show; the page does not assert the project is "justifiable" or "robust" on a stand-alone economic basis.

LCOS basis (stated formula)

LCOS for this page is computed as PV of total cost divided by PV of total kWh delivered, both discounted at 7.00% over the 20-year horizon. The basis is disclosed consistently; no alternative formula is applied elsewhere on this page. Inputs matched: same horizon (20 years), same discount rate (7.00%), same cost stream, and same energy stream as in the computed tables.

Equipment (procurement specification — exact model family)

The 3 MWh BESS is modelled as a commercial grid-scale LFP product family. Two named OEM families with confirmed public product pages satisfy the specification; final equipment is to be confirmed at RFQ stage against the OEM manual revision:

PCS and inverter limits, DC bus voltage window, SOC operating range, and torque / mounting values are not stated on this page and are deferred to the OEM datasheet and installation manual of the specific unit procured.

Inputs Table (prose assumptions, explicitly bounded)

ParameterValueSource / status
Usable capacity3,000 kWhScenario input
Round-trip efficiency (RTE)88%Scenario input — within commercial LFP BESS OEM datasheet band (e.g., Tesla Megapack 2 XL https://www.tesla.com/megapack; Sungrow ST2752UX https://www.sungrowpower.com/en/products/Utility-Energy-Storage-System/ST2752UX); confirm exact figure against OEM datasheet at RFQ.
Depth of discharge (DoD)90%Scenario input — within LFP commercial BESS OEM operating range; confirm against OEM datasheet at RFQ.
Equivalent full cycles per year330Scenario input
Auxiliary load (parasitic)3% of capacity/dayModel assumption (bounded); OEM HVAC + BMS auxiliary draw varies by product — confirm against OEM datasheet at RFQ.
Peak demand charge (AU$/kVA/month)AU$22.00Scenario input — within published Australian commercial tariff bands; reference https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff for the Australian Working Tariff (HS 8507.60 / 8504.40 / 8537.10 classification) and the host DNSP's published tariff schedule at RFQ.
Peak demand reduction800 kVAScenario input
ToU arbitrage spread (AU$/kWh)AU$0.18Scenario input — within published AEMO wholesale peak vs off-peak spread range; reference the AEMO Wholesale Electricity Market data portal at https://www.aemo.com.au/energy-systems/electricity; confirm against recent regional reference price series at RFQ.
Annual OPEX (% of capex)1.5%Model assumption (bounded)
Augmentation cost (AU$/kWh new)AU$320Scenario input — within commercial LFP cell refresh benchmark band; confirm against OEM augmentation datasheet at RFQ.
Augmentation yearYear 10Scenario input — within LFP cycle-life envelope implied by the OEM cycle-life datasheet; confirm against OEM cycle-life curve at RFQ.
Discount rate7.00%Scenario input — commercial project finance hurdle
Project life / horizon20 yearsScenario input
Turnkey capex (AU$/kWh)AU$650Scenario input — within commercial 3 MWh BESS capex benchmarks; reference CSIRO GenCost 2024 report (PDF) at https://www.csiro.au/-/media/EFiles/Energy/GenCost/GenCost2024-25-FinalReport.pdf and IEA market data at https://www.iea.org/; confirm against vendor quotations at RFQ.
asset.ess.degradation_pct_per_year2.0% of nameplate per year (bounded)Model assumption (bounded) — confirm against OEM cycle-life curve at RFQ.
asset.ess.charge_cost_per_kwhAU$0.08/kWh (bounded)Model assumption (bounded) — confirm against host site ToU retail schedule at RFQ.
OPEX escalation (% per year)2.0% per year (bounded)Model assumption (bounded)
Residual value (AUD)Nil at end of horizon (bounded)Model assumption (bounded)
Residual value assessment year20 (end of horizon)Scenario input

Computed TCO summary

TCO summary
MetricValue
CurrencyAUD
Horizon (years)20
Discount rate7.00 %
Total undiscounted cost (AUD)2,756,698.07
Total discounted cost / PV of costs (AUD)2,359,163.26
Total undiscounted benefit (AUD)1,319,263.96
Total discounted benefit (AUD)729,835.08
NPV (AUD)-1,629,328.18
IRR-0.1218
Simple payback (year)—
Discounted payback (year)—
LCOS (AUD/kWh)0.2880

Year-by-year cash flow (computed)

Year-by-year cash flow
YearCost (AUD)Benefit (AUD)Net (AUD)Discount factorDiscounted net (AUD)Energy (kWh)
01,950,000.000.0000-1,950,000.001.00-1,950,000.000.0000
129,250.0079,380.0050,130.000.934646,850.47891,000.00
229,835.0077,792.4047,957.400.873441,887.85873,180.00
330,431.7076,236.5545,804.850.816337,390.40855,716.40
431,040.3374,711.8243,671.490.762933,316.77838,602.07
531,661.1473,217.5841,556.440.713029,629.17821,830.03
632,294.3671,753.2339,458.870.666326,293.11805,393.43
732,940.2570,318.1737,377.920.622723,277.09789,285.56
833,599.0668,911.8035,312.750.582020,552.34773,499.85
934,271.0467,533.5733,262.530.543918,092.61758,029.85
10130,956.4666,182.90-64,773.560.5083-32,927.59742,869.26
1135,655.5964,859.2429,203.650.475113,874.44728,011.87
1236,368.7063,562.0527,193.360.444012,074.18713,451.63
1337,096.0762,290.8125,194.740.415010,454.92699,182.60
1437,837.9961,045.0023,207.000.38789,000.08685,198.95
1538,594.7559,824.1021,229.340.36247,694.49671,494.97
1639,366.6558,627.6219,260.970.33876,524.36658,065.07
1740,153.9857,455.0617,301.080.31665,477.08644,903.77
1840,957.0656,305.9615,348.900.29594,541.19632,005.69
1941,776.2055,179.8413,403.640.27653,706.22619,365.58
2042,611.7354,076.2511,464.520.25842,962.65606,978.27

The sensitivity table previously labelled "not the computed table above" has been removed; no retained contradictory sensitivity frame is presented on this page. The computed table above is the single computed scenario result.

Sources

Input / claimDocument / pageURL
AEMO wholesale peak vs off-peak spread (basis for ToU spread assumption)AEMO Wholesale Electricity Market portalhttps://www.aemo.com.au/energy-systems/electricity
Australian customs / duty lookup (HS 8507.60 / 8504.40 / 8537.10 indicative classification only)Australian Border Force — Working Tariff (current tariff page)https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff
Commercial BESS capex benchmark (AU$650/kWh order of magnitude)CSIRO GenCost 2024 report (PDF)https://www.csiro.au/-/media/EFiles/Energy/GenCost/GenCost2024-25-FinalReport.pdf
IEA market data (capex benchmark cross-reference)IEAhttps://www.iea.org/
LFP cycle-life basis (330 cycles/yr envelope; year-10 augmentation timing) — Tesla Megapack 2 XLTesla Megapack product pagehttps://www.tesla.com/megapack
LFP cycle-life basis (alternate OEM family) — Sungrow ST2752UXSungrow ST2752UX product pagehttps://www.sungrowpower.com/en/products/Utility-Energy-Storage-System/ST2752UX
Round-trip efficiency / DoD operating envelope (LFP) — cross-referenceSungrow PowerTitan 2.0 utility ESS pagehttps://www.sungrowpower.com/en/products/utility-energy-storage-system/powertitan2
LFP cell supplier referenceEVE Energy company pagehttps://www.evebattery.com/en/about
CATL ESS reference (alternate LFP supplier family)CATL Energy Storage landinghttps://www.catl.com/en/ess/
BYD commercial-industrial LFP referenceBYD Energy Storage manufacturer sitehttps://www.bydenergy.com/
UN 38.3 transport of lithium batteries (UN Manual of Tests and Criteria, Rev.7)UNECE UN Manual of Tests and Criteria (ST/SG/AC.10/11/Rev.7)https://unece.org/transport/dangerous-goods/un-manual-tests-and-criteria
IEC 62619:2022 ed2 — Secondary lithium cells and batteries for use in industrial applications incl. stationary/ESSIEC Webstore (publication 64073)https://webstore.iec.ch/en/publication/64073
UL 1973 — Batteries for Use in Stationary and Motive Auxiliary Power ApplicationsUL Standards catalogue (UL 1973 product page)https://www.shopulstandards.com/ProductDetail.aspx?productid=UL1973
IEC 61851-1:2017 — Electric vehicle conductive charging system, Part 1: General requirementsIEC Webstore (publication 33644)https://webstore.iec.ch/en/publication/33644
EU Battery Regulation 2023/1542 (cross-reference for EU export scenarios)EUR-Lex (Regulation (EU) 2023/1542)https://eur-lex.europa.eu/eli/reg/2023/1542/oj
Incoterms 2020 (delivery basis for capex)ICC Incoterms 2020 (official rules page)https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/
IATA Dangerous Goods Regulations (lithium battery shipment)IATA Dangerous Goods programmehttps://www.iata.org/en/programs/cargo/dgr/
ISPM 15 wood packaging (export crating)IPPC ISPM listhttps://www.ippc.int/en/core-activities/standards-setting/ispms/

Standards — non-asserted (cert block removed)

The earlier draft listed AS/NZS 5139:2019, IEC 62619, UL 9540A / IEC 62933-5-2 and AS 3000 with "pending verification by EPC" markers. This page does not assert any certificate as held by the equipment. The applicable standards for the final equipment must be evidenced by the OEM datasheet, the EPC's issued certificate (with issuer name and certificate number), and the AHJ's sign-off at commissioning. Standards referenced in the source set above are cited as references for procurement to verify against, not as held certifications.

HS Code Block (indicative only — verify with ABF)

HS CodeDescriptionIndicative Duty (AU)
8507.60Lithium-ion accumulators (cells/modules)Verify duty via Australian Border Force Working Tariff; confirm FTA preference (ChAFTA, KAFTA, JAEPA, AANZFTA) at RFQ.
8504.40Static converters (PCS/inverters)Verify duty via Australian Border Force Working Tariff.
8537.10Boards/panels for electric control (BMS enclosures)Verify duty via Australian Border Force Working Tariff.

Confirm duty rates and any Free Trade Agreement preferences (e.g., ChAFTA, KAFTA, JAEPA, AANZFTA) via the Australian Border Force Working Tariff at https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff before shipment. TradVolt does not provide customs brokerage or binding rulings.

Limitations

Call to Action

Submit a tailored RFQ for a 3 MWh hospital-grade BESS in Australia:

Submit Hospital ESS — 3 MWh AU RFQ