E3 Minnesota Energy Storage Cost-Benefit Study (2020) is an economic analysis that evaluates the costs and benefits of deploying energy storage systems in Minnesota’s electricity grid. Conducted by E3 (Energy and Environmental Economics), the study quantitatively compares the investment and operational costs of various storage technologies—such as battery systems—against the grid and societal benefits they produce. The analysis considers factors like avoided transmission and distribution upgrades, reduced fuel use, improved reliability and resilience, deferment of generation capacity, environmental impacts, and peak-load management. By modeling how storage can support grid flexibility and integrate more renewable energy, the study helps policymakers and utilities determine whether specific storage investments are cost-effective in achieving state energy goals. It offers recommendations on valuation methods and policy design to capture the full range of benefits from energy storage deployment.
