Smart batteries, typically part of Battery Energy Storage Systems (BESS), optimize energy storage during peak demand hours by leveraging advanced technologies and strategies. Here’s how they do it:
Key Strategies for Optimizing Energy Storage
1. Peak Shaving
- Mechanism: Smart batteries store energy during off-peak hours when electricity is cheaper and less in demand. This stored energy is then discharged during peak hours to reduce the strain on the grid.
- Effect: By supplying stored energy during peak periods, smart batteries help reduce peak demand, thereby optimizing energy distribution and reducing the likelihood of grid overload.
2. Load Shifting
- Mechanism: Similar to peak shaving, load shifting involves charging batteries during off-peak hours but focuses on shifting the energy usage to periods when renewable sources are abundant or grid demand is lower.
- Effect: This strategy optimizes energy usage by ensuring that non-essential loads are shifted to periods of lower demand, further balancing the grid’s load profile.
3. Energy Arbitrage
- Mechanism: Advanced software, like Enel’s Distributed Energy Resources Optimization Software (DER.OS), monitors grid conditions and predicts facility loads. It then selects optimal times for charging and discharging based on energy prices, maximizing economic returns through energy arbitrage—buying low and selling high.
- Effect: This maximizes the economic value of battery storage by taking advantage of price differences between off-peak and peak hours.
4. Optimization through Bidding in Markets
- Mechanism: In systems like the National Electricity Market (NEM) of Australia, optimization is achieved by making smart bidding decisions. The goal is to maximize revenues by strategically offering energy storage services in different markets (e.g., ancillary services).
- Effect: This strategy involves optimizing battery usage to capture the highest value from available market opportunities, contributing to grid stability.
5. Value Stream Co-Optimization
- Mechanism: This involves managing distributed energy resources, including solar + storage deployments, to capture multiple value streams simultaneously (e.g., distribution support, merchant value streams).
- Effect: By optimizing across different layers, operators can enhance revenue streams while ensuring grid resilience and efficiency.
6. Real-Time Monitoring and Control
- Mechanism: Continuous monitoring of battery health, grid conditions, and environmental factors allows for real-time adjustments in charging and discharging strategies.
- Effect: This ensures the battery operates safely and efficiently, optimizing storage capacity and preventing potential issues.
These strategies enable smart batteries to optimize energy storage effectively during peak demand hours, ensuring grid reliability, enhancing economic efficiency, and supporting the integration of renewable energy sources.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-smart-batteries-optimize-energy-storage-during-peak-demand-hours/
