Why do we need BESS for peak shaving behind the meter?

The cost of energy is on the rise. This is especially true for businesses who for a long time have paid demand tariffs on the prices of electricity at peak energy usage times. This means electricity is expensive at times when demand is high. 

Peak shaving is a way to combat these high rates by using battery energy storage systems (BESS) to store excess energy during off-peak hours and release it during peak hours. 

Not only does this help save money, but it also helps stabilize the grid overall. 

We'll take a closer look at how BESS is used for peak shaving behind the meter, and why peak shaving actually is an important measure to avoid building more power infrastructure than necessary.

What is BESS? 

BESS, battery energy storage systems, are large battery systems that work by storing energy and releasing it. 

Energy can be stored during off-peak hours, allowing the use of the stored energy instead of relying on grid power when prices are highest. 

Peak shaving as an important support factor for the grid

Peak demand times happen throughout the day. It´s a bit like rush-hour on a highway; lots of people are doing the same thing at the same time; in our case, using power. 

Just imagine in the morning; everybody arrives at the office at approximately the same time: the lights turn on, the coffee machines start working, computers are turned on, and so on. This creates a peak demand time, as this happens in every building in an area. 

Sometimes it can lead to there being too little power being available, and the grid may seem to be dimensioned all wrong. 

This may create the need for building more capacity in the grid, which is expensive, takes time and is extremely invasive with regards to nature - just think about trees needing to be cut down where power lines are built, or the massive digging needed where cables are dug down. 

BESS helps reduce the strain on the electrical grid by managing load demand and shifting this excess load away from peak hours. The result is one of saving money, experiencing fewer interruptions in service, and help to make the entire electrical grid more efficient.

Why do we need peak shaving in the first place - what are the benefits of a smoother energy load profile?

Peak shaving is a key strategy to help reduce energy costs and improve the overall efficiency of energy usage. 

By flattening out our energy load peaks, we can reduce the amount of electricity needed at any given time, preventing us from overconsuming resources. As a result, peak shaving saves us money and helps us use the energy more sustainably in the long term. It also makes it much easier for energy providers to meet demand with an appropriate supply, making sure that everyone has enough to go around! 

Ultimately, peak shaving is beneficial in many ways: it helps us save money while increasing overall efficiency and helping promote sustainability.

How does BESS help with this, and what are some of the other benefits of having BESS installed at your business premises?

Having Battery Energy Storage Systems (BESS) installed at your business is a great way to increase energy efficiency and sustainability. Not only does this reduce energy bills by using stored solar energy instead of drawing from the grid, but it also provides an additional layer of security should there be power outages or fluctuations. Plus, with some government rebate initiatives available for businesses that install BESS sessions on their premises, you can save money in the long run too! By installing BESS at your business you're taking proactive steps towards improving the environment while saving money and expanding upon your company's resilience.

Are there any drawbacks to using BESS for peak shaving, and how can these be overcome?

Installing a battery energy storage system (BESS) for peak shaving may seem like an ideal solution, but there are some drawbacks that users should consider. One of the biggest issues is the upfront cost of a BESS; purchasing and installing one requires a significant financial investment that may not be accessible to all businesses or households. 

Additionally, current battery technologies still have lifespans that are much shorter than those of conventional power plants. 

The need to replace a BESS more frequently can result in greater long-term costs. 

Fortunately, strategies such as using different battery chemistries and sources of renewable energy can help maximize the efficiency, lifespan, and performance of a BESS - leading to better peak shaving results and higher cost savings over time.

Plan for the future!

This has been a quick run-down of BESS and how it can be used behind the meter to shave peaks off your energy load profile. 

By doing this, you can enjoy a number of benefits including lower energy bills, reduced stress on the grid, and improved power quality at your premises. 

If you've been considering peak shaving as a way to save money and reduce your impact on the environment, we hope this article has provided some useful insights.