- Cost Savings: Energy storage systems, such as battery energy storage systems (BESS), can significantly reduce demand charges by shaving off peak demand during high-cost hours. This is particularly beneficial for commercial and industrial customers who face high demand charges based on their peak power consumption.
- Stability and Reliability of the Grid: By storing energy during off-peak hours and discharging it during peak demand periods, BESS can improve the stability and reliability of the power grid. This helps in managing the variability of renewable energy sources and avoids the strain on the grid during peak times.
- Environmental Benefits: When energy is stored from renewable sources and used during peak demand periods, it reduces the need to activate fossil fuel-based power plants. However, if the energy is stored from non-renewable sources, it may merely shift emissions.
- Optimization of Renewable Energy Use: Energy storage enhances the efficiency of renewable energy systems by allowing excess energy produced during off-peak hours (e.g., from solar panels during the day) to be stored and used later. This maximizes the self-consumption of renewable energy, reducing reliance on the grid during peak times.
- Improved Energy Management and Predictability: Businesses can manage their energy expenses more predictably by using energy storage to flatten their demand curve. This strategic approach helps companies optimize operational costs and possibly qualify for more favorable utility rate plans.
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