Energy storage systems, particularly battery energy storage systems (BESS), play a crucial role in reducing peak demand charges by implementing a strategy known as peak shaving. Here’s how they help:
Peak Shaving Process
- Charging During Off-Peak Hours: Batteries are charged from the grid during off-peak hours when electricity costs are lower. This process does not increase the demand charges because it occurs when demand is typically lower.
- Discharging During Peak Hours: The stored energy is then discharged to power equipment or facilities during peak hours when demand charges are higher. This reduces the total power drawn from the grid during these periods, thus lowering the peak demand charges.
- Savings and Benefits: By shaving the peak demand, businesses can significantly lower their electrical bills. Demand charges can account for a substantial portion of utility bills, sometimes exceeding 50% for commercial and industrial users. Energy storage systems not only reduce these charges but also provide backup power during outages, enhancing resilience and reducing potential losses due to downtime.
Key Benefits of Energy Storage for Peak Shaving
- Flexibility: Energy storage can manage peaks at any time of day, unlike solar which is limited to daylight hours.
- Cost Savings: Reduces demand charges significantly, which can amount to substantial savings over time.
- Operational Continuity: Provides backup power during outages, minimizing operational losses.
In summary, energy storage helps reduce peak demand charges by acting as a buffer between peak demand periods and the electrical grid, allowing for more efficient and cost-effective energy management.
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