$15000 per 10 year old Tesla battery is the answer to the question, 'how much would a 10 year old Tesla battery be worth to a utility if used to supply peeking power?'
Ans: $15k
They get that number multiplying the going rate for peek power by the remaining battery capacity over 16 years.
Year 1: 0.0385 MW/days X $100 X 365 days = $1405
Over a 16 year investment period adds up to $15k.
Year 1 (corrected): 0.0032 MW-days x ($100 - $70) x 365 days = $35.04
Edit: This assumes they're cycling the battery once per day. Presumably there's only one period each day when they can sell at peak and one period each day when they can buy at off-peak.
What's being purchased is 'standby reserve power per day 'not 'energy per day'
Digging it appears the promise being sold is. Will reserve of 2 hours of peeking power for $100 per megawatt _per day_.
That's where the divide by 2 comes from. because what you are selling is the ability to provide 2 hours of peeking power _if needed_. Not 24 hours worth.
https://www.technologyreview.com/s/602245/why-we-still-dont-...