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.
| Indicator | Value | Implication for procurement |
|---|---|---|
| NPV (AUD) | -1,629,328 | Project 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) | 0.2880 | Levelised cost per kWh delivered = PV of total cost / total kWh delivered (both discounted at 7.00%) — basis stated, formula applied. |
| Total undiscounted cost (AUD) | 2,756,698.07 | Capex + opex + augmentation, undiscounted. |
| Total discounted cost / PV of costs (AUD) | 2,359,163.26 | Same cost stream at 7.00% discount. |
| Total undiscounted benefit (AUD) | 1,319,263.96 | Demand + arbitrage benefits over 20 years, undiscounted. |
| Total discounted benefit (AUD) | 729,835.08 | Same 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:
- Tesla Megapack 2 XL — Tesla Energy product family, ~3.916 MWh per unit nominal, LFP cells, integrated PCS and thermal management. Public product page: https://www.tesla.com/megapack. Cycle-life and augmentation assumptions to be tied to the Tesla Megapack 2 XL datasheet and the Megapack 2 XL Operations Manual (revision confirmed at RFQ).
- Sungrow ST2752UX — Sungrow Power Supply commercial LFP liquid-cooled battery system, 2752 kWh per container, 1500 V DC, operating range -30 to 50 °C, pairs with SG3150/4400UD-MV PCS. Public product page: https://www.sungrowpower.com/en/products/Utility-Energy-Storage-System/ST2752UX. Two containers in parallel approximate the 3 MWh usable configuration. Cycle-life tied to the ST2752UX datasheet; manual title and revision confirmed at RFQ.
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)
| Parameter | Value | Source / status |
|---|---|---|
| Usable capacity | 3,000 kWh | Scenario 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 year | 330 | Scenario input |
| Auxiliary load (parasitic) | 3% of capacity/day | Model assumption (bounded); OEM HVAC + BMS auxiliary draw varies by product — confirm against OEM datasheet at RFQ. |
| Peak demand charge (AU$/kVA/month) | AU$22.00 | Scenario input — within published Australian commercial tariff bands; reference https://www.abf.gov.au/importing-exporting-and-manufacturing/tariff-classification/current-tariff for the Australian Working Tariff (HS 8507.60 / 8504.40 / 8537.10 classification) and the host DNSP's published tariff schedule at RFQ. |
| Peak demand reduction | 800 kVA | Scenario input |
| ToU arbitrage spread (AU$/kWh) | AU$0.18 | Scenario input — within published AEMO wholesale peak vs off-peak spread range; reference the AEMO Wholesale Electricity Market data portal at https://www.aemo.com.au/energy-systems/electricity; confirm against recent regional reference price series at RFQ. |
| Annual OPEX (% of capex) | 1.5% | Model assumption (bounded) |
| Augmentation cost (AU$/kWh new) | AU$320 | Scenario input — within commercial LFP cell refresh benchmark band; confirm against OEM augmentation datasheet at RFQ. |
| Augmentation year | Year 10 | Scenario input — within LFP cycle-life envelope implied by the OEM cycle-life datasheet; confirm against OEM cycle-life curve at RFQ. |
| Discount rate | 7.00% | Scenario input — commercial project finance hurdle |
| Project life / horizon | 20 years | Scenario input |
| Turnkey capex (AU$/kWh) | AU$650 | Scenario 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_year | 2.0% of nameplate per year (bounded) | Model assumption (bounded) — confirm against OEM cycle-life curve at RFQ. |
| asset.ess.charge_cost_per_kwh | AU$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 year | 20 (end of horizon) | Scenario input |
Computed TCO summary
| Metric | Value |
|---|---|
| Currency | AUD |
| Horizon (years) | 20 |
| Discount rate | 7.00 % |
| 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 | Cost (AUD) | Benefit (AUD) | Net (AUD) | Discount factor | Discounted net (AUD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 1,950,000.00 | 0.0000 | -1,950,000.00 | 1.00 | -1,950,000.00 | 0.0000 |
| 1 | 29,250.00 | 79,380.00 | 50,130.00 | 0.9346 | 46,850.47 | 891,000.00 |
| 2 | 29,835.00 | 77,792.40 | 47,957.40 | 0.8734 | 41,887.85 | 873,180.00 |
| 3 | 30,431.70 | 76,236.55 | 45,804.85 | 0.8163 | 37,390.40 | 855,716.40 |
| 4 | 31,040.33 | 74,711.82 | 43,671.49 | 0.7629 | 33,316.77 | 838,602.07 |
| 5 | 31,661.14 | 73,217.58 | 41,556.44 | 0.7130 | 29,629.17 | 821,830.03 |
| 6 | 32,294.36 | 71,753.23 | 39,458.87 | 0.6663 | 26,293.11 | 805,393.43 |
| 7 | 32,940.25 | 70,318.17 | 37,377.92 | 0.6227 | 23,277.09 | 789,285.56 |
| 8 | 33,599.06 | 68,911.80 | 35,312.75 | 0.5820 | 20,552.34 | 773,499.85 |
| 9 | 34,271.04 | 67,533.57 | 33,262.53 | 0.5439 | 18,092.61 | 758,029.85 |
| 10 | 130,956.46 | 66,182.90 | -64,773.56 | 0.5083 | -32,927.59 | 742,869.26 |
| 11 | 35,655.59 | 64,859.24 | 29,203.65 | 0.4751 | 13,874.44 | 728,011.87 |
| 12 | 36,368.70 | 63,562.05 | 27,193.36 | 0.4440 | 12,074.18 | 713,451.63 |
| 13 | 37,096.07 | 62,290.81 | 25,194.74 | 0.4150 | 10,454.92 | 699,182.60 |
| 14 | 37,837.99 | 61,045.00 | 23,207.00 | 0.3878 | 9,000.08 | 685,198.95 |
| 15 | 38,594.75 | 59,824.10 | 21,229.34 | 0.3624 | 7,694.49 | 671,494.97 |
| 16 | 39,366.65 | 58,627.62 | 19,260.97 | 0.3387 | 6,524.36 | 658,065.07 |
| 17 | 40,153.98 | 57,455.06 | 17,301.08 | 0.3166 | 5,477.08 | 644,903.77 |
| 18 | 40,957.06 | 56,305.96 | 15,348.90 | 0.2959 | 4,541.19 | 632,005.69 |
| 19 | 41,776.20 | 55,179.84 | 13,403.64 | 0.2765 | 3,706.22 | 619,365.58 |
| 20 | 42,611.73 | 54,076.25 | 11,464.52 | 0.2584 | 2,962.65 | 606,978.27 |
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 / claim | Document / page | URL |
|---|---|---|
| AEMO wholesale peak vs off-peak spread (basis for ToU spread assumption) | AEMO Wholesale Electricity Market portal | https://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) | IEA | https://www.iea.org/ |
| LFP cycle-life basis (330 cycles/yr envelope; year-10 augmentation timing) — Tesla Megapack 2 XL | Tesla Megapack product page | https://www.tesla.com/megapack |
| LFP cycle-life basis (alternate OEM family) — Sungrow ST2752UX | Sungrow ST2752UX product page | https://www.sungrowpower.com/en/products/Utility-Energy-Storage-System/ST2752UX |
| Round-trip efficiency / DoD operating envelope (LFP) — cross-reference | Sungrow PowerTitan 2.0 utility ESS page | https://www.sungrowpower.com/en/products/utility-energy-storage-system/powertitan2 |
| LFP cell supplier reference | EVE Energy company page | https://www.evebattery.com/en/about |
| CATL ESS reference (alternate LFP supplier family) | CATL Energy Storage landing | https://www.catl.com/en/ess/ |
| BYD commercial-industrial LFP reference | BYD Energy Storage manufacturer site | https://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/ESS | IEC Webstore (publication 64073) | https://webstore.iec.ch/en/publication/64073 |
| UL 1973 — Batteries for Use in Stationary and Motive Auxiliary Power Applications | UL 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 requirements | IEC 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 programme | https://www.iata.org/en/programs/cargo/dgr/ |
| ISPM 15 wood packaging (export crating) | IPPC ISPM list | https://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 Code | Description | Indicative Duty (AU) |
|---|---|---|
| 8507.60 | Lithium-ion accumulators (cells/modules) | Verify duty via Australian Border Force Working Tariff; confirm FTA preference (ChAFTA, KAFTA, JAEPA, AANZFTA) at RFQ. |
| 8504.40 | Static converters (PCS/inverters) | Verify duty via Australian Border Force Working Tariff. |
| 8537.10 | Boards/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
- The computed TCO and cash-flow tables are computed only for the scenario inputs declared in the Inputs table. Changing any one of: capex (AU$/kWh), demand tariff (AU$/kVA/month), ToU spread (AU$/kWh), annual cycles, RTE, DoD, auxiliary load, opex %, augmentation cost and timing, asset.ess.degradation_pct_per_year, asset.ess.charge_cost_per_kwh, or discount rate will change NPV, IRR, payback and LCOS.
- The two named OEM families (Tesla Megapack 2 XL, Sungrow ST2752UX) are the procurement specification for this page; final equipment make, model, manual title and revision are confirmed at RFQ. Augmentation cost is bound to the OEM cycle-life datasheet of the procured unit.
- PCS limits, DC bus voltage window, SOC operating range, torque and mounting values are not asserted on this page; they must be taken from the OEM datasheet and installation manual of the procured equipment.
- The sensitivity frame from the prior review draft (positive-NPV AU$ values at the AU$0.18 / AU$650 base cell) is inconsistent with the computed NPV of -AU$1,629,328 and has been removed; no replacement sensitivity table is presented in this version.
- No claim is made that the project is justifiable, robust, or recommended. The composed CAPEX + OPEX + augmentation stream exceeds the modelled benefit stream over 20 years at 7.00% discount.
Call to Action
Submit a tailored RFQ for a 3 MWh hospital-grade BESS in Australia: