Today, as businesses and communities worldwide make strides toward sustainable energy practices, the importance of effective energy storage is becoming increasingly clear. Commercial energy storage systems play a pivotal role in this transformative journey, enabling us to utilize renewable energy more efficiently and reliably. In this article, we will not only answer some of the most common questions about commercial battery storage systems, but also briefly explore the differences between commercial, grid-scale, and residential storage solutions.
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We will also highlight the role of innovative technologies in advancing commercial battery storage, using Exro Technologies' Cell Driver™ Technology as an example. Our 90kW/192kWh Cell Driver™ is a commercial battery energy storage system that showcases the future of this crucial technology.
Whether you're a business owner seeking renewable energy solutions, an industry expert staying up-to-date with the latest advancements, or simply an enthusiast curious about the future of sustainable technology, this article aims to provide valuable insights. Let's start our exploration by diving right into these common questions.
A commercial battery storage system is a clean technology designed to store electrical energy for use at a later time. These systems serve as the backbone of a business's energy infrastructure, providing the ability to store electricity when demand is low and dispatch it when demand is high. This ability to control when and how electricity is used provides a significant advantage, allowing businesses to operate more efficiently and sustainably.
Commercial battery storage systems utilize advanced battery technologies, which are installed on a business's premises. The stored energy can be derived from various sources, including the grid during off-peak times or from renewable energy installations such as solar panels or wind turbines. Once stored, this energy can be used in several ways: it can be dispatched during peak demand times to reduce energy costs, used as a backup power source during outages, or even fed back into the grid in certain scenarios.
Commercial battery storage systems are not just about energy independence—they are also about smart energy management. These systems can be programmed to optimize energy use based on various factors, such as energy prices, peak demand times, and the business's specific energy needs. In essence, a commercial battery storage system allows businesses to take control of their energy use, improving efficiency, reducing costs, and supporting sustainability efforts.
Exro Technologies' 90kW/192kWh Cell Driver™ is a prime example of this technology, offering businesses a reliable and efficient solution for managing their energy needs while supporting the transition to renewable energy sources.
Commercial battery storage systems work by capturing and storing electrical energy, and then providing that energy when it's needed. This process involves several stages:
Charging: The first step is charging the system. This involves taking electricity from a source—whether it's from the grid or from a renewable energy system like solar panels or wind turbines—and storing it in the system's batteries. The energy is often stored in the form of chemical energy within these batteries, ready to be converted back into electrical energy when needed.
Storing: Once charged, the energy is stored until it's needed. Advanced battery technologies used in these systems can hold a substantial amount of energy for extended periods. This stored energy can be used at any time, providing flexibility in managing energy demands.
Discharging: When energy is required—for instance, during peak demand times, during a power outage, or when renewable sources aren't producing energy—the system discharges, converting the stored chemical energy back into electrical energy and delivering it where it's needed.
Managing: Most commercial energy storage systems also have a management component. This is typically a computer system that manages the flow of energy, deciding when to charge and discharge based on various factors like energy prices, demand patterns, and the overall energy needs of the business.
Exro Technologies' Cell Driver™ is equipped with an advanced Energy Management System that dynamically and intelligently manages the system. It's designed to efficiently manage energy use, storing power when demand and prices are low and supplying it when demand is high or during power outages. The result is a more reliable, efficient, and cost-effective approach to managing a business's energy needs.
Commercial battery storage systems offer numerous benefits to businesses, making them an increasingly popular choice in today's energy landscape. Here are some of the main advantages:
Energy Cost Savings: By charging during off-peak times when energy prices are lower and discharging during peak demand times when prices are higher, these systems can generate significant cost savings. This practice, known as load shifting or peak shaving, can dramatically reduce a business's energy bill.
Demand Charge Management: Businesses often face demand charges based on their highest peak energy usage. With battery storage systems, businesses can draw power from their storage system during periods of peak demand, effectively reducing peak grid energy usage and associated demand charges.
Resilience and Reliability: Commercial battery storage systems can provide backup power during grid outages, ensuring uninterrupted operations. This is crucial for businesses that rely on constant power supply, such as refrigerated facilities, hospitals, and manufacturing facilities.
Support for Renewable Energy: These systems are an ideal complement to renewable energy sources like solar and wind. They can store excess energy produced during peak production times for use when production is low or non-existent, such as at night for solar power.
EV Charging Buffer: As electric vehicle (EV) use increases, so does the demand for charging stations. Commercial battery storage can help manage the load of EV charging stations by storing power during low-demand periods and supplying it during times of high demand, preventing overloads and maintaining a stable power supply.
Reduced Carbon Footprint: By optimizing energy usage and enabling the effective use of renewables, commercial battery storage systems can help businesses reduce their carbon footprint and contribute to sustainability goals.
Grid Services: In some cases, businesses with commercial battery storage systems can participate in demand response programs or provide other grid services, which can generate additional revenue or savings.
Exro Technologies' Cell Driver™ embodies these benefits, offering an efficient and reliable solution for commercial energy management. By using the Cell Driver™ system, businesses can optimize their energy usage, support their sustainability goals, and ensure they have reliable power when they need it most.
The amount of energy a commercial energy storage system can store varies widely based on the specific system and its configuration. It's typically measured in kilowatt-hours (kWh), a unit of energy that represents the amount of work that can be done by one kilowatt of power in one hour.
Smaller commercial battery storage systems might have a capacity of a few dozen kilowatt-hours, suitable for small businesses or facilities. Larger systems, designed for bigger operations or industrial use, can store hundreds or even thousands of kilowatt-hours. The capacity needed will depend on the energy needs of the business, the variability of their energy supply and demand, and their goals for using the system, such as backup power provision or cost savings.
For instance, Exro Technologies' Cell Driver™ has a capacity of 192 kilowatt-hours. This substantial capacity makes it suitable for a wide range of commercial applications, providing ample energy storage for businesses to manage their energy use effectively, support renewable energy integration, and ensure reliability and resilience of their power supply.
The duration of energy storage in commercial systems largely depends on the technology and design of the system. While most modern battery storage systems are designed for daily energy cycling—charging during periods of low demand or high renewable energy production and discharging during high demand or low production periods—they can theoretically hold their charge for a longer duration if left unused.
For instance, lithium-ion battery packs, a common technology in commercial battery storage systems, can retain most of their charge for an extended period. In favourable conditions, they lose only around 2 to 3 percent of their charge per month when left unused.
However, it's important to note that the optimal use of these systems isn't to store energy indefinitely. They are designed to actively manage energy supply and demand, which involves regular charging and discharging.
The lifecycle of these systems, on the other hand, can vary based on numerous factors, including the quality of the components, the management of the charge and discharge cycles, environmental conditions, and the level of maintenance. Generally, a well-maintained commercial energy storage system can have a lifetime of 10 to 20 years.
Exro Technologies' Cell Driver™ provides a stellar example of this technology at work. Unlike other systems, the Cell Driver™ is equipped with a patented Battery Control System™ (BCS). This advanced technology actively manages each individual cell within the system, monitoring its state of charge and state of health. This means the system can intelligently decide which cells to use at any given moment, allowing certain cells to rest when they're not needed - enhancing the overall safety and performance of the system.
This active management approach not only improves the safety of the system but also significantly extends its lifecycle. By allowing the optimal utilization and rest of individual cells, the Battery Control System™ ensures that the Cell Driver™ can provide reliable and efficient energy management over an extended period, making it an ideal long-term solution for businesses while also enabling the use of second-life EV and telecommunication batteries.
Battery storage plays a crucial role in our transition to a more sustainable energy landscape, but it's important to understand the distinctions between commercial battery storage, grid-scale storage, and residential storage. These systems differ not only in scale and capacity but also in the permits, certifications, and installation considerations they require.
Grid-Scale Battery Storage: Grid-scale storage, also known as utility-scale storage, refers to energy storage systems deployed on a larger scale to support the overall electrical grid. These systems are typically located at centralized facilities and provide significant energy storage capacity to stabilize the grid, manage peak demand, and facilitate the integration of renewable energy sources effectively. Grid-scale storage projects involve large battery arrays, pumped hydro storage, compressed air energy storage, or other technologies capable of storing and discharging large amounts of energy. Due to the magnitude of these installations and their impact on the grid, they require comprehensive permits, regulatory approvals, and grid interconnection agreements.
Commercial Energy Storage: Commercial energy storage systems are specifically designed for businesses, industries, and commercial facilities. These systems have lower capacity than grid-scale energy storage but higher capacity than residential systems. Commercial energy storage solutions offer tailored features, such as demand charge management, load shifting, and backup power capabilities, to optimize energy usage, reduce costs, and enhance energy reliability for commercial and industrial settings. They require specific permits and certifications for commercial installations and may not be suitable or approved for use in residential zones due to regulatory requirements.
Residential Storage: Residential storage solutions are designed for individual homes and smaller-scale energy needs. These systems are typically installed within or near residential properties and enable homeowners to optimize their energy usage, increase self-consumption of renewable energy, and provide backup power during outages. Residential storage solutions, such as lithium-ion battery units, are smaller in scale and capacity compared to commercial or grid-scale systems. They require permits and certifications specific to residential installations, ensuring compliance with safety regulations and grid interconnection standards.
Furthermore, it's important to understand the concept of "behind the meter" and "in front of the meter" installations. Commercial and residential energy storage systems are often considered "behind the meter" installations, as they are located on the customer's side of the utility meter. These systems primarily serve the energy needs of the customer and can reduce reliance on the grid. In contrast, grid-scale storage installations are typically considered "in front of the meter" as they are connected directly to the grid and provide services to the larger electrical system.
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Each type of energy storage system requires specific permits, certifications, and regulatory compliance to ensure safe and reliable operation. Understanding these differences and associated considerations helps businesses and homeowners select the appropriate system for their needs while adhering to local regulations and utility requirements.
The Cell Driver™ by Exro Technologies is a fully integrated battery energy storage system (BESS) that revolutionizes stationary commercial and industrial energy storage applications. With its cutting-edge features and advanced communication technology, the Cell Driver™ is designed to optimize performance, reduce costs, and deliver exceptional value.
Equipped with Exro's patented Battery Control System™ (BCS), the Cell Driver™ sets a new standard in energy storage. The BCS ensures maximized cell safety, capacity, and lifetime, providing businesses with peace of mind and reliability.
By harnessing the power of the Cell Driver™, businesses gain precise control over their power usage, enabling them to efficiently manage their electricity consumption and lower energy expenses. This level of control empowers businesses to enhance energy reliability, reduce reliance on the grid, and embrace a more sustainable and independent energy future.
The Cell Driver™ represents a significant advancement in energy storage technology, offering businesses a fully integrated solution that combines performance optimization, cost reduction, and improved energy reliability. Experience the transformative potential of the Cell Driver™ by partnering with Exro Technologies and unlocking the power of efficient and cost-effective energy storage.
Growing demand for renewable energy, an aging electrical grid, costly grid infrastructure improvements, and increasing extreme weather events will require increased energy flexibility to help the grid balance intermittent supply with responsive demand. Energy storage systems – like battery storage – are ideal candidates for providing this flexibility. In addition, these systems offer a wide range of benefits to energy users. In this blog, find out what battery storage is and what value it can add to your organization.
At its core, energy storage unlocks energy flexibility, allowing it to play a critical role in balancing electricity supply and demand, making the electrical grid more reliable and cleaner. Energy storage systems can store surplus energy and dispatch flexible capacity to support the electrical grid during peaks of energy demand, such as when temperatures are high, or when intense weather events and power outages occur.
There are four basic types of energy storage:
Although over 90% of the world’s energy storage capacity is still pumped hydro storage, battery storage is catching up, accounting for the majority of new storage capacity installed. Lithium-ion batteries, in particular, are favored for their high energy efficiency, density, and long cycle life.
There are some key characteristics of battery storage:
Most commercially deployed battery energy storage systems have storage durations of two to four hours, used for short-duration applications like ancillary services and shaving demand peaks. As the grid further decarbonizes and balancing intermittent energy resources like solar and wind become more critical to the transition to a decarbonized grid, the use of longer duration energy storage systems may be warranted.
While lithium-ion batteries can discharge for a long time, a sweet spot is around two to four hours, based on the economics. For longer duration applications, alternative technologies may be required.
This is a mockup of an Enel innovation project: a gravitational energy storage system, which integrates Enel’s recycling of decommissioned wind turbine blades into the weights used by Energy Vault’s gravity-based energy storage system.
Because battery storage is flexible – meaning it can spin up and ramp up quickly – it can provide a wide range of services to keep the grid in balance. It can also enable your organization to be more flexible in its energy usage and generate revenue from a variety of value streams. Below we describe the main services that battery storage provides to three stakeholder groups: energy markets, utilities, and customers – per RMI’s framework introduced in The Economics of Battery Energy Storage.
Source: The Economics of Battery Energy Storage
Distributed energy resources (DERs) refer to the smaller energy generation and storage systems located on the consumer’s side of the meter for use on-site (i.e., behind-the-meter). They are typically connected to the lower-voltage distribution network, hence the name “distributed.” Distributed battery energy storage systems have different applications than the utility-scale storage systems that are typically located front-of-meter on the transmission network. Distributed applications pertain to the “customer services” stakeholder group mentioned in the previous question. In the remainder of these questions, we focus on these battery energy storage systems located on the consumer side of the meter, and omit “distributed” for brevity.
The main benefit is energy cost savings. Energy-intensive industries spend a large percentage of their operational budget on their energy bills, every year. In addition, increased pressure to decarbonize from both regulators and stakeholders are driving the need for organizations to more holistically assess how and when they are consuming electricity from the grid. When optimized for your facility’s consumption pattern and utility tariff, battery storage can help you charge and store excess energy when prices are low and switch your consumption to the stored energy when prices are high.
From demand charge management (both when the grid is at its peak and when the facility is at its peak), time-of-use energy arbitrage, and, when applicable, revenues for providing grid services like demand response
There’s also a growing need for on-site backup power, which battery storage, when paired with backup controls, can serve to provide. For example, Enel completed in a solar + storage microgrid at Alltown Fresh service station in Ayer, Massachusetts to support continuous power for service stations near evacuation routes across the state during emergencies. By integrating the system behind the same meter, on-site solar power will help charge electric vehicles (EVs). During a grid outage, the facility’s critical loads can continue to be powered.
Probably not. There are two main components to installing a battery energy storage system at your facility. The first is the technology piece, which includes both the hardware and optimization software. Similar to a GPS navigator guiding you home, the optimization software is what analyzes information in real-time to determine optimal operation of your system – like when and how much to charge and discharge at any point in time.
The second is the operation of the hardware and optimization software to maximize the system’s value. You could capture some value by operating the system according to a set of simple rules. However, capturing the full value of a battery energy storage system requires tapping into multiple value streams, sometimes simultaneously, such as:
Capitalizing on all available value streams requires specific knowledge and expertise about using and constantly updating the optimization software, accessing wholesale energy markets, and maintaining real-time dynamic tariff libraries to unlock this full stack of value. Therefore, we recommend that organizations work with a trusted energy partner, like Enel, who can interface with the complex market dynamics and diverse set of stakeholders like grid operators, utilities, and government agencies. Enel has more than 20 years of experience in this department.
For certain projects, Enel can help finance for you. Enel makes this possible through flexible financing options, which are different variations on a benefit-share agreement. Under such an agreement, Enel puts up the upfront capital cost for the battery energy storage system – meaning that your organization can retain your capital on your core operations, while still benefiting from battery storage. Through the life of the contract, you split the benefits (energy bill savings and grid revenues) with Enel, according to a pre-determined split.
As a result, your organization shares in the value created by the battery energy storage system, with no downside risk. Enel recoups its original investment with its split of the generated value. This zero-capex financing model is only made possible through Enel’s ability to underwrite future (uncertain but predictable) value streams. At Enel, we are confident in our ability to deliver on the full value of battery storage – and you can rest assured that through our partnership, we have aligned incentives to drive optimal performance for the system.
Lithium-ion battery storage has a great safety record. Tesla, a top energy storage system integrator worldwide, with more than 15 GWh of installed global capacity (as of ), has had only three confirmed fires. None of these incidents were behind-the-meter systems that require more stringent safety standards. Based on investigation reports, these incidents were primarily caused by improper installation of the system, meaning that these risks can be entirely mitigated through proper installation and maintenance.
At Enel, we adhere to the strictest industry standards of safety:
Beyond what industry standards require, we strive to work out of the box in the development and sharing of best practices, both internally and externally:
Our battery units are housed in containers, connected to the electrical grid, and safeguarded by advanced safety features, which are monitored 24/7 digitally and remotely for safe operation. Throughout the development and construction of our battery energy storage projects, we work closely with local fire departments to meet the safety requirements in our communities. Enel is a party to fire safety standards such as NFPA 855 (a member from Enel sits on the committee) and a member of the Energy Storage Association. We’ve also signed the Energy Storage Association’s Corporate Responsibility Pledge, further demonstrating our commitment to safety when deploying energy storage resources.
That is what we strive for. A battery energy storage system is composed of a container, batteries, a power conversion system, HVAC thermal management, fire suppression system, and other system controls and communications. At their end of life, systems are collected, sorted, and disassembled. While most of the system components can be recycled through direct processes (like for scrap metal and electronics), the battery modules require special treatment for the processing and recycling of lithium-ion batteries.
Depending on the chemistries used in the lithium-ion batteries, there are different processes for extracting and reusing the raw materials. At a high level, waste batteries are mechanically crushed, dried, and sieved into what is referred to as a “black mass.” Precious metals are then extracted from the black mass through pyrometallurgy and hydrometallurgy:
In evaluating these processes, it’s important to consider their environmental and resource impacts. Many studies have found that hydrometallurgy is a more suitable recycling method than pyrometallurgy, as it allows for a higher recovery of precious metals with lower energy consumption, greenhouse gas emissions, minimal air emissions, and purification. However, this may change as new technologies and improvements become economically viable.
Looking ahead, Enel is committed to best practices for sustainability and circularity. At the system’s end of life, we will work with our suppliers to pursue the most sustainable recycling or repurposing applications.
A long-awaited win in the Inflation Reduction Act of is the new eligibility of standalone energy storage for the 30% full credit investment tax credit (ITC). Previously, standalone energy storage systems had to be attached to a solar PV or wind system to be eligible for the upfront investment incentives, and they had to charge from that system 75% of the time. Now that standalone energy storage qualifies for the ITC, these requirements are no longer necessary to qualify for the incentive.
This gives energy storage projects, like lithium-ion batteries, more siting and operational flexibility – as well as the ability to capture additional value streams like energy arbitrage, ancillary services, grid stability services, and more. Beyond the 30% full credit, there are opportunities to layer on bonus tax credits for meeting certain requirements on domestic content, energy communities, and low-income communities. Learn more about how to make the most of the Inflation Reduction Act tax credits.
You may be a good candidate – but a feasibility study is needed. Battery storage can be a good fit for organizations that want to reduce their energy costs, improve energy resilience, and reduce their carbon footprint. However, the specific benefits and costs will depend on several factors, including your energy usage, location, and project complexity. It is recommended that you first conduct a feasibility study to determine if battery storage is the right fit.
Industries that have high energy costs (due to energy usage or high tariffs) are good candidates for battery storage. Industries that fall into this category include commercial real estate, industrial manufacturing, data centers, governments, and schools. Battery storage is particularly well-suited for industries that operate during peak demand periods, as it can help reduce peak demand charges.
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