How a Battery Energy Storage System (BESS) Can Reduce Demand Charges and Save Money

How a Battery Energy Storage System (BESS) Can Reduce Demand Charges and Save Money

The electricity grid can only support so much energy, after which demand charges and consumption spikes occur, straining the system, driving infrastructure upgrades, and risking outages.peak shaving battery Peak shaving is a strategy that levels out these peaks, mitigating costs without disrupting the operation of a facility. It involves reducing energy use for a short time frame, either by shutting down production or activating on-site power generation. Battery energy storage systems are becoming increasingly essential to powering these efficiencies.

Using energy storage to reduce demand charges and save money is one of the most cost-effective ways for industrial and commercial (C&I) businesses to lower electricity prices and protect themselves from high demand charges.peak shaving battery With the increasing trend towards electrification, this is especially important for managing unpredictable load profiles and peaks.

A smart Energy Management System (EMS) optimizes battery storage for peak shaving by leveraging a combination of strategies and technologies.peak shaving battery These include schedule control that adheres to predetermined charging and discharging schedules based on a site’s load profile, tariff structure, and seasonality; predictive control that uses historical and real-time data along with forecasts to optimally charge and discharge the BESS; and immersion cooling, which submerges batteries in a non-conductive fluid to prevent thermal runaway and maintain thermal balance.

BESSs can support a wide variety of peak shaving applications.peak shaving battery For example, EV charging is a common application that enables facilities to cut electric vehicle (EV) demand charges by up to one-third by limiting the amount of power allocated to each charger during on-peak periods. In addition, BESSs can also help to balance intermittent renewables and reduce grid fees by storing excess energy during low-prices and supplying it back into the grid during peak hours.

In general, a BESS works by storing energy at times when prices and grid demand are low—typically overnight or during the early morning.peak shaving battery The EMS then strategically discharges that energy to support facility loads during the upcoming peak period. This reduces demand on the grid and utility meters, eliminating or minimizing demand charges, and can help businesses save thousands of euros on their electricity bill.

A BESS can be used to reduce demand charges on its own, or in conjunction with other energy-efficient measures, such as shifting usage to periods of lower power prices or grid demand using demand response.peak shaving battery In addition, BESSs can be paired with on-site power generation to further lower electricity costs by cutting out the need to purchase power from the grid.

When evaluating the best solution for your business, it is vital to consider both the total cost of ownership and payback of your battery storage system. This includes the initial investment, installation, operations and maintenance, and life-cycle costs. EVESCO’s energy consultants can conduct a detailed analysis of your business’s situation, including the cost and benefits of BESS peak shaving. We can then determine the optimal battery size, capacity, and features to meet your needs and deliver a positive return on investment. We can also provide a breakdown of the specific savings from peak shaving that will be incurred over your expected battery storage system lifetime.

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