Energy storage systems, particularly battery energy storage systems (BESS), play a crucial role in peak shaving and demand charge management. Here’s how they help:
Peak Shaving
- Storing Energy During Off-Peak Hours: BESS stores energy during periods of low electricity demand, when prices are typically lower. This stored energy is then used during peak hours to reduce strain on the grid and lower consumption costs.
- Reduction of Peak Demand: By discharging stored energy during peak periods, these systems help reduce the peak demand on the grid, which is essential for maintaining grid stability and reducing infrastructure needs.
- Flexibility and Quick Response: BESS can respond quickly to changes in demand, ensuring that power is available when needed without straining the grid.
Demand Charge Management
- Avoiding High Demand Charges: Demand charges are based on the maximum power drawn from the grid over a set period. Peak shaving with BESS can reduce these charges by minimizing peak usage, thus lowering overall energy costs.
- Optimization of Energy Usage: Energy management systems integrated with BESS can identify energy-intensive processes and automate load shifting, ensuring that stored energy is used during peak periods to optimize energy efficiency and reduce demand charges.
- Cost Savings: The ability to store energy cheaply and use it during peak hours can lead to substantial cost savings, especially for high-demand loads like EV charging stations and HVAC systems.
Benefits and Applications
- Renewable Energy Integration: BESS can store excess energy from renewable sources like solar or wind during off-peak hours, making it available for use during peak periods and enhancing sustainability.
- Industrial and Commercial Applications: Peak shaving is particularly beneficial in industries with high power demands, such as manufacturing, data centers, and large commercial buildings.
By leveraging energy storage systems, businesses and consumers can optimize their energy use, reduce costs, and contribute to a more stable and sustainable grid.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-energy-storage-systems-help-in-peak-shaving-and-demand-charge-management/
