Effective Battery Energy Storage Systems for Reducing Demand Charges
Overview
Demand charges, which reflect the maximum amount of power a customer uses during a billing cycle, can significantly affect commercial and industrial electricity bills. Battery energy storage systems are increasingly being used to mitigate these charges by reducing peak demand.
Types of Battery Energy Storage Systems
Several types of battery energy storage systems are effective for demand charge reduction:
- Lithium-Ion Batteries
- These batteries offer high power-to-energy ratios, making them ideal for peak shaving and demand charge reduction. They are particularly effective in reducing peak power levels over short periods.
- Lead-Acid Batteries
- While less efficient than lithium-ion, lead-acid batteries can still be used for demand charge reduction in certain applications.
- Second-Life Electric Vehicle (EV) Batteries
- Repurposing end-of-life EV batteries provides a cost-effective and sustainable solution for energy storage. These can be optimized for use in energy storage systems, offering a lower-cost alternative.
How Battery Energy Storage Reduces Demand Charges
- Peak Shaving: Systems charge batteries during off-peak hours and discharge them during peak hours, reducing the need for grid power and thus lowering demand charges.
- Load Leveling: Batteries help maintain a consistent power demand profile, smoothing spikes and reducing peak usage.
Implementation Considerations
- Sizing and Integration: Properly sizing the energy storage system to match peak demand patterns is crucial for maximizing savings. Systems should be integrated with intelligent software to optimize energy usage.
- Cost-Effectiveness: High demand charges ($15/kW or more) often make battery storage economically viable.
By integrating these battery energy storage systems, businesses can significantly reduce their demand charges while benefiting from backup power and improved energy resilience.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-types-of-battery-energy-storage-systems-are-most-effective-for-reducing-demand-charges/
