Use-Case / TCO — 750 kWh BESS at a Coastal Landfill Gas-to-Power Site

Scenario ID: landfill-ess-750kwh-sea-r9 · Geography: North Sea coastal LFG site · Equipment: CATL EnerC cabinet (2 paralleled) + Huawei SUN2000-330KTL-H1 + Sungrow SG125HT · Horizon: 20 years · Discount rate: 7.00 % real · Evidence date: 2026-09-22

Verdict (one line). At the computed base case the project does not pay back over the 20-year horizon: NPV = −140,958.38 USD; IRR = −6.15%; simple payback = none; discounted payback = none; LCOS = 0.1773 USD/kWh (17.73 ¢/kWh). The combination of 7% real discount rate, front-loaded capex (240,000 USD) and the year-12 replacement leaves PV of costs (363,074.01 USD) above PV of benefits (222,115.62 USD). Limitation: revenue overlay assumes a fixed per-kWh discharge value with 2% p.a. decline and a constant round-trip efficiency; both are bounded model defaults pending RFQ-stage confirmation.
Decision metricValuePass?
NPV (USD, real, 20 yr, r=7%)−140,958.38No
IRR−6.15%No (below hurdle)
Simple payback (year)—No
Discounted payback (year)—No
LCOS (USD/kWh)0.1773Above 14 ¢/kWh screen
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1. Scope and equipment

A 750 kWh / 375 kW lithium-iron-phosphate (LFP) battery storage system is colocated with a 1.6 MW landfill-gas (LFG) reciprocating engine. The BESS smooths engine output, stores daytime surplus for evening grid feed-in, and provides frequency-response services to the TSO. The site sits roughly 800 m from the high-water line; the cabinet enclosure is specified to IP66 with ISO 9223 C4 (salt-fog) coating class, both treated as scenario assumptions bounded by the inputs in §2.

The equipment stack referenced in this scenario, with manufacturer pages used for capacity and topology confirmation:

All three references are to OEM product or family pages that confirm the model designations cited above. Specific OEM manual titles and revisions (BMS torque, SoC window, DC voltage limits) are issued by the OEM under NDA and are confirmed at RFQ; at publication the numeric operating envelope is bounded by the scenario assumptions listed in §2.

2. Inputs to the scenario model

The scenario model used the inputs in the table below. Sourced rows cite the specific document; bounded defaults are explicit model assumptions (not sourced facts).

ParameterValueUnitBasis
Nameplate energy750kWhScenario spec (2 × CATL EnerC 372 kWh)
Nameplate power375kW (0.5C)Scenario spec
Initial CapEx (year 0)240,000.00USDScenario spec (320 USD/kWh × 750 kWh)
Annual O&M (year 1)4,800.00USD/yrScenario spec (2.0% of CapEx, escalated 2% p.a.)
Replacement event (year 12)144,000.00USD nominalScenario spec (60% of initial CapEx)
Horizon20yearsScenario spec
Discount rate (real)7.00%Scenario spec
Annual energy (year 1)222,750.00kWh/yrScenario spec (330 cycles × 675 kWh/cycle)
Degradation (energy)−2.0%/yrModel assumption (bounded default) — applied to annual energy
ESS usable fraction (asset.ess.usable_pct)90%Model assumption (bounded default) — nameplate-to-usable conversion
Round-trip efficiency (asset.ess.round_trip_eff)92%Model assumption (bounded default) — charge/discharge round-trip
Value per kWh discharged (year 1)0.133USD/kWh dischargedModel assumption (bounded default) — grid-service overlay; declined 2% p.a.
Charge cost per kWh (year 1)0.0216USD/kWh chargedModel assumption (bounded default) — embedded in O&M schedule
Residual value (amount)0USDModel assumption (bounded default) — zero at horizon end
Residual value (year)20yearModel assumption (bounded default)
Operating profile referenceFrequency response + arbitrage—Scenario spec; UK reference: Ofgem retail market indicators

3. TCO summary — computed figures (from COMPUTED TABLES)

TCO summary
MetricValue
CurrencyUSD
Horizon (years)20
Discount rate7.00 %
Total undiscounted cost (USD)500,627.38
Total discounted cost / PV of costs (USD)363,074.01
Total undiscounted benefit (USD)401,500.49
Total discounted benefit (USD)222,115.62
NPV (USD)-140,958.38
IRR-0.0615
Simple payback (year)—
Discounted payback (year)—
LCOS (USD/kWh)0.1773

4. Year-by-year cash flow — computed (from COMPUTED TABLES)

Year-by-year cash flow
YearCost (USD)Benefit (USD)Net (USD)Discount factorDiscounted net (USD)Energy (kWh)
0240,000.000.0000-240,000.001.00-240,000.000.0000
14,800.0024,158.2519,358.250.934618,091.82222,750.00
24,896.0023,675.0818,779.080.873416,402.38218,295.00
34,993.9223,201.5818,207.660.816314,862.88213,929.10
45,093.8022,737.5517,643.750.762913,460.33209,650.52
55,195.6722,282.8017,087.130.713012,182.88205,457.51
65,299.5921,837.1416,537.560.666311,019.67201,348.36
75,405.5821,400.4015,994.820.62279,960.77197,321.39
85,513.6920,972.3915,458.700.58208,997.11193,374.96
95,623.9720,552.9514,928.980.54398,120.38189,507.46
105,736.4420,141.8914,405.440.50837,323.00185,717.31
115,851.1719,739.0513,887.880.47516,598.03182,002.97
12149,968.2019,344.27-130,623.930.4440-57,998.59178,362.91
136,087.5618,957.3812,869.820.41505,340.52174,795.65
146,209.3118,578.2412,368.920.38784,796.88171,299.74
156,333.5018,206.6711,873.170.36244,303.38167,873.74
166,460.1717,842.5411,382.370.33873,855.60164,516.27
176,589.3717,485.6910,896.310.31663,449.49161,225.94
186,721.1617,135.9710,414.810.29593,081.37158,001.42
196,855.5816,793.259,937.670.27652,747.85154,841.39
206,992.6916,457.399,464.690.25842,445.86151,744.57

5. Interpretation

Cost and benefit discounting are reported on the same real, end-of-year basis at r = 7%. The PV of costs (363,074.01 USD) is the sum of the discounted Cost column over years 1–20 plus the year-0 capex of 240,000 USD (discount factor 1.00); PV of benefits (222,115.62 USD) is the sum of the discounted Benefit column over years 1–20. NPV is PV(benefits) − PV(costs) = 222,115.62 − 363,074.01 = −140,958.38 USD.

The year-12 line carries the replacement capex (144,000 USD nominal) plus that year's O&M (5,968.20 USD), totalling 149,968.20 USD — a single-year net outflow (−130,623.93 USD nominal, −57,998.59 USD discounted) that drives the cumulative discounted balance to its deepest point.

Because the cumulative discounted net cash flow never crosses zero, neither simple nor discounted payback occurs within the 20-year horizon. IRR is therefore negative (−6.15%), below any positive hurdle rate.

LCOS = PV(costs) / PV(throughput). With PV(throughput) = Σ kWh_t × 1/(1.07)^t over years 1–20, LCOS = 363,074.01 / PV(throughput) = 0.1773 USD/kWh.

6. What would have to change to clear the screen

Illustrative point estimates only; not in the COMPUTED TABLES block. Use the RFQ form to obtain a binding re-run through the scenario model.

7. Trade-compliance notes

ItemStatusReference
HS sub-heading (EU import)PENDING — lookup via EU TARIC consultation; cross-check against WCO HS Nomenclature 2022 edition: WCO HS 2022EU TARIC + WCO HS 2022
HS sub-heading (US import)PENDING — lookup via USITC HTS searchUSITC HTS
HS sub-heading (UK import)PENDING — lookup via UK Global TariffUK Global Tariff
EU Battery RegulationApplies to LFP BESS placed on the EU market — carbon footprint, recycled-content and due-diligence obligations under Regulation (EU) 2023/1542 (EUR-Lex 2023/1542); passport labelling and BMS requirements in force from staged datesEUR-Lex 2023/1542
Incoterms (shipment to site)Use ICC Incoterms 2020 DAP or DDP for BESS cabinets — ICC Incoterms 2020ICC Incoterms 2020
Dangerous goods (lithium batteries, sea freight)UN 38.3 test summary required; ship under IMDG Class 9, see IATA DGR for the modal programme and UN Manual of Tests and Criteria (ST/SG/AC.10/11/Rev.7) for the test provisionsUN ST/SG/AC.10/11/Rev.7
Wood packaging (ISPM 15)Heat-treated / marked pallets required — IPPC ISPMsIPPC ISPM 15
Cargo insuranceInstitute Cargo Clauses (A) recommended — IUA clauses libraryICC (A) 2009

8. Applicable standards (named in text, editions in force)

UN 38.3 (UN ST/SG/AC.10/11/Rev.7) IEC 62619:2022 ed2 — Safety requirements for secondary lithium cells and batteries for use in industrial applications incl. stationary/ESS (IEC 62619:2022) IEC 62485-5:2020 — Safety requirements for stationary lithium-ion batteries (IEC 62485-5:2020) IEC 62109-1:2010 — PCE safety general requirements (IEC 62109-1:2010) UL 1973 (UL 1973) UL 9540A NFPA 855 ISO 9223 C4 IEC 61851-1:2017 (IEC 61851-1:2017) if EV bi-directional charging is added

9. HS code block (PENDING, with lookup path)

HS 2025: PENDING — exact sub-heading to be confirmed at RFQ via EU TARIC consultation (link), USITC HTS (link) and UK Global Tariff (link), cross-referenced against WCO HS Nomenclature 2022 edition (link). Section heading likely candidates: 8507 (electric accumulators) with lithium-ion preference. Dual-use (EU): not listed. Export-control (US): ECCN 3A991 (mass-market batteries).

10. Next steps

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Evidence date: 2026-09-22. Tradvolt editorial. computed figures are limited to the COMPUTED TABLES in §3 and §4; all other quantitative commentary is illustrative.