Battery energy storage systems (BESS) offer significant potential cost savings for businesses through several strategies:
Potential Cost Savings
- Peak Shaving: Businesses can store energy during off-peak hours when electricity prices are lower and use it during peak hours when prices are higher. This reduces the need to purchase electricity at high rates, leading to substantial cost savings over time.
- Time-of-Use Pricing Plans: By leveraging these plans, businesses can benefit from lower rates during off-peak hours, further reducing their energy costs.
- Demand Response Programs: Participating in demand response programs allows businesses to earn additional revenue by reducing their energy consumption during peak demand periods.
- Reduced Reliance on Grid Services: By providing backup power during outages, businesses can minimize the financial impacts of lost productivity and reduce their reliance on costly backup generators.
- Integration with Renewable Energy: BESS enables businesses to better utilize renewable energy sources like solar and wind by storing excess energy for use during periods of low generation. This reduces reliance on fossil fuels and decreases energy costs associated with intermittent renewable sources.
Estimates of Cost Savings
- McKinsey suggests that BESS could reduce energy costs in certain commercial and industrial settings by up to 80%.
- Texas energy storage deployments have reported savings of $750 million in energy costs for consumers over a single summer season.
Future Outlook
As technology advances and battery costs decrease, the financial attractiveness of BESS for businesses is expected to increase, offering even greater cost savings potential in the future.
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