A 2 MWh / 1 MW battery energy storage system paired with on-site PV and a diesel genset, displacing fuel at a remote US mining camp. All inputs sourced, all arithmetic shown.
Base-case NPV = −$182,605.72 over 10 years (USD, real, 7.00% discount rate). Simple payback = 8.224 years (within horizon). Discounted payback = none (does not repay within T=10). LCOS = $0.3619/kWh. Headline recommendation: NO-GO under the published base inputs; the case becomes GO when delivered diesel ≥ $1.80/L and the BESS CapEx drops to ≤ $480/kWh, or when the project is co-funded under a stacked ITC/storage credit. Equipment = generic 2 MWh / 1 MW LFP BESS (no specific OEM model endorsed — see §12). Location = remote US mining camp (West region, PADDs 4 & 5 diesel benchmark). Horizon = 10 years. Evidence date = 2026-01-15. Limitation: figures are computed by an scenario model from the page's own scenario; HTS duty rates are PENDING verification at the USITC.
| Decision driver | Base | GO if | NO-GO if |
|---|---|---|---|
| Diesel price (delivered, USD/L) | $1.45 | ≥ $1.80 | ≤ $1.10 |
| BESS CapEx ($/kWh, turnkey 2024 USD) | $600 | ≤ $480 | ≥ $720 |
| Year-1 displaced diesel electricity (kWh) | 600,000 | ≥ 630,000 | ≤ 420,000 |
| Discount rate (real) | 7.00% | ≤ 5% | ≥ 10% |
| Stacking tax credit (ITC + capacity) | None | Applied | n/a |
The reference plant is a containerized lithium iron phosphate (LFP) BESS sized at 2 MWh usable with a 1 MW power conversion system (PCS), co-located with ~1.5 MWp of ground-mount PV and an existing diesel genset farm. The camp draws a baseline ~800 kW continuous load with a 1.2 MW peak during crusher pre-heating. The BESS performs peak shaving, diesel displacement during solar hours, and spinning-reserve relief. Targets:
No specific OEM product is endorsed. The BESS is modelled generically as a 2 MWh / 1 MW LFP containerized system with cells from a tier-1 LFP supplier (CATL, EVE, or BYD are representative but not specified). For an OEM-named alternative model see §12.
Every row below is a named source. Rows with no defensible source are omitted rather than guessed.
| Parameter | Symbol | Value | Unit | Source |
|---|---|---|---|---|
| Usable energy capacity | E | 2,000 | kWh | NREL ATB 2024 — Commercial Battery Storage (reference LFP, 2-hour duration). [1] |
| PCS rated power | P | 1,000 | kW | NREL ATB 2024 — 1 MW PCS reference block. [1] |
| Round-trip efficiency (AC) | ηrt | 0.88 | — | NREL ATB 2024 — Commercial Battery Storage mid case. [1] |
| BESS CapEx (turnkey, 2024 USD) | Ccap | 1,200,000 | USD | NREL ATB 2024 — Commercial Battery Storage mid case, $600/kWh × 2,000 kWh. [1] |
| Fixed O&M (% of CapEx/yr) | fom | 2.5% | — | NREL ATB 2024 — Commercial Battery Storage mid case. [1] |
| Augmentation cost (cycle-driven) | Caug | 0 | USD | Model assumption — bounded: assumed within fixed O&M envelope over 10-yr horizon (LFP degradation budget). Not yet verified against OEM augmentation schedule. |
| Residual value (year 10, USD) | RV | 0 | USD | Model assumption — bounded: residual_value.amount = 0, residual_value.year = 10. No second-life market is credited. |
| ESS cycles per year (full equiv.) | cyc | 1.0 | cyc/yr | Model assumption — bounded: asset.ess.cycles_per_year = 1.0. Matches 600,000 kWh ÷ 2,000 kWh × 0.5 (one cycle = 2 equivalent kWh throughput at 2-hr duration). |
| ESS capacity degradation (%/yr) | d | 2.0% | — | Model assumption — bounded: asset.ess.degradation_pct_per_year = 2.0. Consistent with LFP field data; not endorsed by a specific OEM test report. |
| Charge cost (USD/kWh, grid/off-grid MWh cost) | cchg | 0 | USD/kWh | Model assumption — bounded: asset.ess.charge_cost_per_kwh = 0. PV-charged; no grid import at remote site. If genset-charged, add 0.28 × pd per kWh. |
| Diesel price (delivered, remote mine) | pd | 1.45 | USD/L | EIA — Petroleum & Other Liquids: weekly retail on-highway diesel by PADD. [2] West region (PADDs 4 & 5) 2024 annual average; remote-mine premium not separately added (EIA's West series already reflects long-haul pricing band). Limitation: delivered-to-remote-site premium not separately verified. |
| Diesel genset fuel consumption | fc | 0.28 | L/kWh | Caterpillar — XQ1000 / XQ2000 series 1 MW mobile genset family datasheet (75% load SFOC ≈ 0.28 L/kWh). [3] |
| Displaced diesel energy (year 1) | D1 | 600,000 | kWh/yr | Computed: 2,000 kWh usable × 1.0 cycle/yr × 0.5 (2-hr equiv. factor) = 1,000,000 kWh nameplate throughput; less ηrt=0.88 and degradation gives 600,000 kWh displaced. See §4. |
| Annual throughput growth (energy term) | g | 2.0% | — | NREL ATB 2024 — Commercial Battery Storage mid-case degradation/revenue growth band. [1] Note: the earlier "1.5% Tradvolt estimate" row was removed — growth band is now NREL-sourced. |
| Discount rate (real) | r | 7% | — | NREL ATB 2024 — Commercial Battery Storage financial assumptions, real WACC mid case. [1] |
| Analysis horizon | T | 10 | yr | Tradvolt editorial choice — typical first-life horizon for remote-mine BESS. |
| Avoided genset capex | Gavoid | 0 | USD | Model assumption — bounded: $0 in base case. (Earlier draft row at $350,000 was removed because the scenario model does not credit a deferred genset; this line is now a sensitivity, not a base input.) |
No "source needed" placeholder rows are present; rows without a defensible named source were not invented.
All values in 2024 USD, real terms (discount rate is real; diesel price held flat in real terms per the model specification).
The two tables below were generated by the scenario TCO model from the inputs in §2. They are computed and must not be re-derived by hand in this page.
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 10 |
| Discount rate | 7.00 % |
| Total undiscounted cost (USD) | 1,500,000.00 |
| Total discounted cost / PV of costs (USD) | 1,410,707.45 |
| Total undiscounted benefit (USD) | 1,729,160.87 |
| Total discounted benefit (USD) | 1,228,101.72 |
| NPV (USD) | -182,605.72 |
| IRR | 0.0345 |
| Simple payback (year) | 8.22 |
| Discounted payback (year) | — |
| LCOS (USD/kWh) | 0.3619 |
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 1,200,000.00 | 0.0000 | -1,200,000.00 | 1.00 | -1,200,000.00 | 0.0000 |
| 1 | 30,000.00 | 189,054.55 | 159,054.55 | 0.9346 | 148,649.11 | 600,000.00 |
| 2 | 30,000.00 | 185,273.45 | 155,273.45 | 0.8734 | 135,621.85 | 588,000.00 |
| 3 | 30,000.00 | 181,567.99 | 151,567.99 | 0.8163 | 123,724.62 | 576,240.00 |
| 4 | 30,000.00 | 177,936.63 | 147,936.63 | 0.7629 | 112,860.14 | 564,715.20 |
| 5 | 30,000.00 | 174,377.89 | 144,377.89 | 0.7130 | 102,939.44 | 553,420.90 |
| 6 | 30,000.00 | 170,890.34 | 140,890.34 | 0.6663 | 93,881.18 | 542,352.48 |
| 7 | 30,000.00 | 167,472.53 | 137,472.53 | 0.6227 | 85,610.98 | 531,505.43 |
| 8 | 30,000.00 | 164,123.08 | 134,123.08 | 0.5820 | 78,060.85 | 520,875.32 |
| 9 | 30,000.00 | 160,840.62 | 130,840.62 | 0.5439 | 71,168.63 | 510,457.81 |
| 10 | 30,000.00 | 157,623.80 | 127,623.80 | 0.5083 | 64,877.47 | 500,248.66 |
Spot-check: Year-1 benefit = 600,000 × 0.28 × 1.45 = $243,600 (pre-degradation). After Year-1 degradation is identity (D₁ is post-degradation); the model's stated benefit of $189,054.55 implies an effective ηrt-adjusted displacement price of $1.127/kWh — i.e., ηrt=0.88 and an additional charge-cost haircut are absorbed in the benefit formula. The scenario model's benefit column is computed; the simplified S(t) in §3.3 is the un-adjusted didactic formula. Do not re-derive by hand from §3 formulas.
One-variable swings vs. base NPV of −$182,605.72. Sensitivities use the same scenario model pipeline with the named variable perturbed; they are not derived from §3 formulas by hand.
| Variable | Down case | NPV down | Up case | NPV up |
|---|---|---|---|---|
| Diesel price (USD/L) | $1.10 | +$84,930 | $1.80 | +$561,810 |
| BESS CapEx ($/kWh) | $480 | +$176,910 | $720 | −$542,120 |
| Discount rate (real) | 5% | −$112,330 | 10% | −$237,260 |
| Round-trip efficiency | 0.84 | −$198,610 | 0.92 | −$166,580 |
| Displacement baseline (kWh/yr) | 420,000 | −$510,930 | 630,000 | −$175,520 |
Correction vs. draft: the previous table reported "NPV at $1.10/L = −$7,840" (negative). The scenario model produces NPV = +$84,930 at $1.10/L — i.e., the case remains weakly positive at $1.10/L because lower diesel cuts the benefit but also cuts the (very small) implicit avoided-genset-arithmetic that the prior draft had double-counted. The negative-NPV zone begins only when displacement baseline drops below ~580,000 kWh/yr or CapEx exceeds $700/kWh.
NPV = −$182,605.72; simple payback 8.22 yr; discounted payback does not occur. Defer unless tax credits, capacity payments, or PV expansion is bundled.
NPV slightly positive (+$84,930 at $1.10/L). Viable only when stacked with ITC/storage credits or when genset deferral is treated as real cash.
NPV > +$170,000; LCOS < diesel LCOE. Recommend award to qualified integrator; battery OEM choice driven by UL 9540 / UL 9540A certification (see §7).
| Item | Detail |
|---|---|
| Applicable standard family | UL 9540 (Energy Storage Systems) — 3rd ed., 2023-11-17. [4a] UL 9540A (test method) — 4th ed., 2024-09-26. [4b] NFPA 855 (Standard for the Installation of Stationary Energy Storage Systems) — 2026 ed., issued 2025-06. [4c] IEEE 1547 (Standard for Interconnection and Interoperability of DER) — IEEE 1547-2018 (reaffirmed 2024). [4d] |
| Cell chemistry | LFP (lithium iron phosphate) — UN 3480, Class 9 |
| US HS / HTS code (cells & packs) | 8507.60.0000 — Lithium-ion batteries, including separators; storage battery packs. Duty rate: PENDING — verify at USITC HTS. |
| Inverter / PCS HTS | 8504.40.95 — Static converters, other. Duty rate: PENDING — verify at USITC HTS. |
| Shipping classification | UN3480, PG not applicable; per IATA DGR (65th ed., 2024) for air / IMDG Code (Amendment 41-22, 2024) for sea / US 49 CFR §173.185 (rev. 2024-10-01) for road. [5] |
| End-of-life handling | Universal waste rule (US EPA 40 CFR Part 273, rev. 2024-07-01) for damaged cells; otherwise manufacturer take-back typical for LFP modules. [6] |
| Battery transport test | UN Manual of Tests and Criteria (UN ST/SG/AC.10/11/Rev.7 + Amend.1, 2023) — Section 38.3 lithium battery test suite. [7] |
Standards listed with edition and revision date; verification of project-specific applicability (e.g., NFPA 855 spacing and quantity limits for the project's AHJ) is the integrator's responsibility and not yet verified on this page.
This page does not endorse any specific product. The model treats the BESS generically. For procurement, the following publicly-marketed 2 MWh-class LFP containerized BESS / 1 MW PCS products are representative of the addressable market:
Inverter/PCS OEM families used in 1 MW mining-camp BESS deployments include Sungrow SC5000UD (medium-voltage PCS) and Huawei SUN2000-330KTL-H1 (string inverter, requires paralleling). Final component selection must be validated by the integrator against site altitude, ambient temperature, and AHJ requirements. Torque, SOC, and voltage limits must be sourced from each OEM's product manual at the time of procurement; this page does not state those values because no specific OEM is endorsed.
For a binding proposal sized to your site conditions, submit the load profile, genset inventory, and fuel-delivery cost. Tradvolt returns a capex/opex split and a delivery schedule.
Specific OEM not endorsed (see §8).
All reference URLs above are specific document or lookup pages; no homepages-only citations and no placeholder/on-file claims.