Battery Energy Storage Systems (BESS) play a significant role in reducing electricity costs by leveraging several strategies:
- Energy Arbitrage and Load Shifting: BESS enables the storage of energy during periods when electricity is cheap (off-peak hours) and using it during times when energy prices are high (peak demand). This allows consumers to avoid paying higher rates during peak periods, thereby reducing their electricity bills.
- Peak Shaving: By discharging stored energy during peak demand periods, BESS reduces the need for more expensive peak power, which is often generated by less efficient and costlier sources like peaker plants. This approach helps lower overall electricity costs by mitigating the strain on the grid during peak times.
- Cost Savings through Renewable Energy Integration: BESS facilitates the efficient use of renewable energy by storing excess energy generated during low-demand periods (e.g., midday solar power) and releasing it when demand is higher (e.g., evening). This integration reduces reliance on more expensive fossil fuel-based power generation, leading to cost savings and a more consistent energy supply.
- Reducing Demand Charges: For commercial users, BESS can help minimize demand charges, which are fees based on the highest electricity usage during a billing period. By smoothing out peak demand, BESS systems can significantly lower these charges, contributing to overall cost reductions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-role-does-bess-play-in-reducing-electricity-costs/
