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Pile On The Payoff = When Battery Energy Storage Supports Multiple Uses, ROI Soars

Pile On The Payoff = When Battery Energy Storage Supports Multiple Uses, ROI Soars

Utility executives may be calling battery energy storage (BES) systems the holy grail of renewables integration and other industry challenges, but here’s an ironic reality: Most organizations keep that holy grail half full or even close to empty. That’s because most organizations target few value streams from battery systems, damaging the profitability of the investment.

Learn how storage investments can provide value along a broader continuum of market-based earning (MBE) opportunities. And how BES systems that are controlled using advanced algorithms can balance a variety of factors to deliver the right service at the right time to the benefit of all stakeholders.

Excerpt:

Utility executives may be calling battery
energy storage (BES) systems the holy grail
of renewables integration and other industry
challenges, but here’s an ironic reality: Most
organizations keep that holy grail half full or even
close to empty.

That’s because most organizations target
one, two or – if they’re ambitious – three value
streams from battery systems. But, when you’re
only trying to recoup an investment based on
one or two value streams, the profitability of the
investment suffers.

When researchers at the Rocky Mountain
Institute, a cleantech think tank, studied this
issue, they concluded that, “The prevailing
behind-the-meter energy-storage business
model creates value for customers and the
grid, but leaves significant value on the table.
Currently, most systems are deployed for one
of three single applications: demand charge
reduction, backup power, or increasing solar
self-consumption. This results in batteries sitting
unused or underutilized for well over half of the
system’s lifetime.”1

According to the RMI scholars, a BES system
used only for demand reduction could be
leveraging as little as 5 percent of its useful
life. It’s unlikely it will be used for more than 50
percent of its potential benefit.
“Dispatching batteries for a primary application
and then re-dispatching them to provide
multiple, stacked services creates additional
value for all electricity system stakeholders,” the
RMI team concluded. 2

How can storage investments provide value
along a broader continuum of market-based
earning (MBE) opportunities? They can’t do
it alone. They need to be controlled using
advanced algorithms that can balance a variety
of factors to deliver the right service at the right
time.

 

 

 

 

 

 

 

 

This white paper brought to you by our partners at:

 

Source:  A Honeywell White Paper

LINK: http://www2.greentechmedia.com/l/264512/2017-04-07/8rtn

 

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