Energy storage plays a crucial role in reducing peak demand on the grid through several key methods:
Reducing Peak Demand
- Load Reduction: Energy storage systems, such as battery energy storage systems (BESS), can supply electricity directly to customers during peak hours, reducing their draw from the grid and thus lowering the overall peak demand.
- Power Export: Stored energy can also be exported back onto the grid during peak periods, providing additional power when it is most needed and further reducing the strain on the grid.
Load Shifting vs. Peak Shaving
- Load Shifting: Involves moving energy consumption from peak to off-peak hours. This can be facilitated by energy storage, which charges during low-demand periods and discharges during high-demand periods, smoothing out the demand curve.
- Peak Shaving: Focuses on reducing the highest peaks of demand. Energy storage helps by providing power during these peaks, thereby lowering the maximum demand on the grid and reducing demand charges for commercial and industrial customers.
Benefits
- Cost Savings: Reducing peak demand helps decrease high demand charges, leading to cost savings for consumers.
- Decarbonization and Clean Energy Integration: Energy storage supports the integration of renewable energy by storing excess energy generated during off-peak times and releasing it during peak demand periods, which can reduce the reliance on polluting peaker plants.
In summary, energy storage systems like BESS are essential tools for managing peak demand by either serving direct loads or exporting power back onto the grid, offering both immediate cost savings and long-term environmental benefits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-energy-storage-help-reduce-peak-demand-on-the-grid/
