Cost Benefits of Peak Shaving with Energy Storage
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Reduced Demand Charges:
- Impact: Demand charges often constitute a significant portion of commercial and industrial electricity bills, accounting for up to 70% of total energy costs in the United States.
- Benefit: By using stored energy during peak hours, businesses can significantly lower their demand charges, as they are billed based on the highest power usage during specific intervals (typically 15 minutes).
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Cost Savings by Avoiding High Peak Rates:
- Impact: Electricity prices are typically higher during peak demand periods.
- Benefit: Energy stored during off-peak hours (when electricity is cheaper) can be used during peak hours, avoiding the higher rates and reducing overall electricity bills.
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Improved Grid Stability and Reduced Infrastructure Costs:
- Impact: Reducing peak demand alleviates strain on the grid, which can lead to more reliable electricity supply and reduce the need for costly infrastructure upgrades.
- Benefit: This contributes to a more stable grid and helps prevent potential outages, which are costly for both consumers and utilities.
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Energy Efficiency and Autonomy:
- Impact: Peak shaving enhances energy efficiency by optimizing usage patterns and reduces reliance on the grid during high-demand periods.
- Benefit: Consumers gain more control over their energy usage and can ensure a steady supply even during power outages by utilizing stored energy.
In summary, incorporating energy storage systems for peak shaving provides substantial cost benefits by reducing demand charges, optimizing energy consumption during cheaper off-peak hours, and improving grid stability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-benefits-of-using-energy-storage-for-peak-shaving/
