At Peak Power, we are passionate about deploying cutting-edge battery storage technology and driving the sustainable energy revolution. In this blog post, we summarize our battery energy storage operations webinar, exploring the operating and control methodologies that can help your business profitably pursue net zero.
Understanding the Operation and Control of Battery Energy Storage Systems:
Battery energy storage systems can be operated through two primary models: in-house operation and third-party management.
In-house operation gives customers complete control and flexibility over batteries, enabling facilities to manage their savings and develop in-house expertise. However, this model requires specialized knowledge and adds an operational burden for facility managers.
On the other hand, the third-party management model offered by companies like Peak Power eliminates the need for capital expenditure and labour costs, allows for revenue sharing, and provides scalability. While it may not offer the same level of direct control as in-house operation, it frees facility managers to focus on other critical tasks.
So what does optimized battery control look like? The battery is connected to the electricity grid and is equipped with a sophisticated controller and software that manages the charging and discharging processes while considering regulatory and market factors.
Operational Considerations for Different Facility Types
Operational differences exist between manufacturing and office buildings regarding battery energy storage systems. Manufacturing sites often experience fluctuating and unpredictable energy demand due to production schedules, requiring careful planning for charging and discharging the batteries to avoid high electricity demand periods. This unpredictability necessitates advanced forecasting models and intelligent control mechanisms to optimize battery operation effectively.
Conversely, office buildings typically have more predictable energy demand profiles, with standard overnight charging and daytime discharging. These operational variations require tailored strategies for optimizing battery operation in different facility types, ensuring maximum efficiency and value generation. For example, office buildings can effectively manage their energy consumption by optimizing the charging schedule to align with off-peak periods, promoting cost savings and a more sustainable operational model.
Savings and Revenue Streams
Battery energy storage systems offer various value stacks that facilities can take advantage of.
- Demand response programs enable energy storage systems to respond to signals from utilities and grid operators by dispatching the battery during periods of high demand, reducing strain on the grid and earning revenue for their response.
- Coincident peaks occur during periods of high electricity demand, and by avoiding these peaks through intelligent battery operation, customers can significantly reduce their energy costs. Peak shaving is the process of discharging the battery during these coincident peak demand periods, reducing the need to draw electricity from the grid, and avoiding high-demand charges.
- Energy arbitrage involves purchasing electricity at low prices and effectively storing it in a battery system, capitalizing on price differentials, and utilizing the stored energy during high-price periods to generate profits.
By actively participating in these value streams through optimized battery storage operations and controls, customers can benefit from substantial savings and even generate revenue.
Considerations for Charging and Discharging
Optimal charging and discharging strategies are essential for battery energy storage systems, both from a value-stacking perspective and to prevent premature battery degradation.
Setting state-of-charge limits and implementing real-time load monitoring is crucial for optimizing battery operation while adhering to various constraints and adjusting strategies to maximize performance and cost-effectiveness. This strategic approach aligns with load shifting, where energy is stored during periods of lower demand and released during peak-demand hours.
In conclusion, battery energy storage systems offer a transformative solution for achieving net zero goals, reducing operating expenses, and unlocking new revenue opportunities for commercial and industrial facilities.
Peak Power’s comprehensive platform and expertise in deploying, operating, and optimizing battery storage systems empower customers and partners to navigate this evolving energy landscape effectively.
Whether through in-house operation or third-party management, battery energy storage systems provide control, flexibility, and scalability. The ability to participate in various revenue streams enhances the economic viability of battery energy storage systems and ensures a positive return on investment for energy storage asset owners.
We conducted an entire webinar discussing the operation and control aspects and battery energy storage systems. You can watch it on-demand here: