Executive Summary This volume presents the battery storage evaluation tool developed at Pacific Northwest National Laboratory. The tool is used to run a one-year simulation to evaluate the benefits of battery storage for multiple grid applications, including energy arbitrage, balancing service, capacity value, distribution system equipment deferral, and outage mitigation. This tool is based on the optimal control strategies to capture multiple services from a single energy storage device. In

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... s control strategy, at each hour, a look-ahead optimization is first formulated and solved to determine the battery base operating point. The minute-by-minute simulation is then performed to simulate the actual battery operation. The development of this tool was motivated by the need for the distribution planning community to have a tool to analyze energy storage with its multitude of services. The tool described in this report enables distribution system planning engineers to model the dispatch of an energy storage system to meet multiple objectives while estimating the economic value of the system as a grid asset when optimally operated. This volume provides background and a manual for this evaluation tool. Volume 1 of this report presents the findings of the financial feasibility study for energy storage systems in the Puget Sound Energy system, and also documents the optimization tool's structure and application. iii Acknowledgments