CONTRIBUTOR
HOW BESS IS USED :
• Peak shaving : The cost to the electricity grid increases as the demand for power goes up . Often a country ’ s demand is so high that “ peaking generation ” units , such as gas turbines , need to be used , which leads to greater generation costs during peak times and higher tariffs . Shaving this peak can be beneficial to both the utility , which saves on expensive fuel , and to the end customer , who saves on monthly electricity costs .
• Increased solar self-consumption . The challenge with renewable energy , including solar , is that resource availability ( e . g ., the sun ) does not always coincide with demand . BESSs allow for the storage of excess solar energy for later use , increasing the customers ’ self-consumption of their solar Photovoltaic ( PV ) energy as illustrated below .
• Arbitrage : The value of energy , as with any commodity , is inherently linked to demand . The higher the demand , the higher the price for energy . Capitalising on this pattern can be achieved by charging a BESS during low-demand periods at a low cost , with the energy stored and then later sold at a competitive price during high-demand periods . The difference between the two is an indication of the profit that can be obtained .
CONCLUSION
When thinking about your household ’ s future energy mix , solar PV is likely to be the most viable option . Given the reducing costs of technology , increasing energy costs , our abundant sunlight , and the long lifespan of the technology the business case is increasingly attractive . Solar PV is therefore a key enabler to ensuring affordable , reliable , and sustainable energy for all . This is particularly important for affordable housing where utility cost increases create affordability cost challenges .
SOURCE : WWW . REDELECTRICAL . CO . UK
“ The value of energy , as with any commodity , is inherently linked to demand .”