How C&I companies can use batteries to benefit from tariff differences?
As many grids lose firm generating capacity with the closure of coal plants, grid operators are keen to buy services that will help keep the electricity supply stable.
There is a capacity market that pays large energy users to stay flexible in the face of spikes in electricity demand, for instance by reining in consumption. C&I companies can play in this market by switching to battery power and cutting the need for grid supplies whenever there is a surge in demand.
The same goes for demand side response programmes, which are growing in popularity as grid operators struggle to match consumption on the electricity network to the intermittent supplies coming from wind and solar plants.
Finally, C&I companies can use batteries to sell other services beyond energy. Batteries can provide a range of ancillary services, from frequency response to voltage control, creating potentially lucrative income streams for asset owners.
What is the benefit of C&I battery energy storage system?
Electricity bills can be a major headache for certain C&I businesses,. And the expense is not just related to energy consumption, but also charges that apply at times of high electricity demand.
For instance, the electricity bills of heavy energy users can go up dramatically when demand is stressing the grid. This happens during three winterly half-hours a year. Large electricity users also have to pay for capacity market supplier charges, based on users’ energy demand during peak periods. All told, these charges can massively inflate a company’s annual electricity bills.
However, they can also largely be avoided by installing a battery system that can supply power to the business during peak demand periods. The potential savings are potentially significant, but C&I companies should seek expert advice on this topic since regulations are subject to change.