FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
DR ALEX MARDAPITTAS
CEO, POWERSTAR
Energy storage with full uninterruptible power supply (UPS) capabilities can keep your business secure while adding new potential revenue streams.
With the increased focus on decarbonisation in the UK, there has been greater attention on the needs of the grid. There are concerns on how it can cope with an expected growth in electricity demand, and the consequences this will have for facilities which need to operate in a secure environment to maintain operational stability while actively reducing energy consumption and carbon emissions.
This is accelerated by initiatives such as the electrification of the UK transport network and implementation of the Clean Growth Strategy policies that intend to make the UK a world-leading green economy. These need to be underpinned by a smart, flexible and responsive grid – something that the current antiquated, centralised grid is unable to provide.
One openly discussed solution is the concept of a decentralised energy network. In this scenario, the centralised grid is supported by local microgrids that are all capable of generating and distributing energy independent of the National Grid. This would allow for a more flexible system as energy users could manage their own demand and supply while also using the technologies that contribute towards decentralisation in the most effective manner. Additionally, as energy will be generated and stored locally, it also increases efficiency in the supply of energy.
An integral component in delivering a more efficient and reliable decentralised energy network is energy storage. Even as a standalone technology, this offers tangible benefits. Firstly, it enables the user to participate in peak shaving to reduce non-commodity charges (which, according to Centrica Business Solutions, are set to make up 60 per cent of the energy bill by 2020). It does this by storing energy during low distribution use of system (DUoS) periods and then ‘time-shifting’ the energy to be used during peak periods to generate cost savings. Additionally, it can be used to accurately predict and avoid Triads. The impact of this is that the end user will save money and lessen the strain on the centralised grid by removing consumption at peak times, consequently boosting the reliability of the grid.
However, this is merely scratching the surface of what energy storage can achieve for a company. Bespoke solutions can offer additional benefits, such as integrated full uninterruptible power supply capabilities, that provide a step-level change to a company’s operations. Integrated full UPS capabilities can provide rapid or even seamless support that connects to the load within milliseconds of the detection of an energy-related failure, such as a blackout or brownout. Furthermore, having UPS integrated as part of a business’s energy storage solution negates the need for additional backup.
Full UPS capabilities offer facilities power resilience and ensure that costly downtime from energy-related failures (which, according to Centrica Business Solutions, has been found to cost as much as 17 per cent of a company’s annual revenues) is avoided. As well as protecting against great financial cost, it avoids the damage to reputation that can be caused by an energy-related failure such as failure to deliver within the supply chain, negative customer experience or, in extreme cases, data breaches and even loss of power to life-saving equipment. UPS can protect the intangible features that contribute to a company’s positive brand equity and add value to its processes.
NEW REVENUE OPPORTUNITIES
In addition to this, intelligent energy storage assets can be connected to the National Grid and help provide the vital support it needs to balance demand. The grid needs help maintaining its operational frequency boundaries and keeping up with growing demand, so it provides financial rewards to companies that can supply energy to the grid or temporarily reduce demand during peak periods or increase their consumption when the grid has an excess of supply. This process is called demand side response (DSR), and it promotes the flexible and intelligent use of energy, introducing new revenue streams to a company.
Perhaps the most notable example of DSR providing new revenue opportunities is through partaking in energy arbitrage. This, to put it simply, is the process by which the end user stores energy generated during off/mid-peak DUoS periods and sells energy back to the grid for a profit during peak periods.
Additionally, reserve services can provide a boost to the revenue capabilities of DSR by intelligently responding to grid events to help the grid balance its demand. Battery energy storage systems in particular are well positioned to take advantage, due to their rapid response capabilities which allow for effective management of demand. This smart and flexible use of energy is enabled through an intelligent energy management system (EMS).
Aside from revenue opportunities, the smart, responsive and flexible use of energy that DSR promotes has the ability to maximise renewable generation. This is achieved by storing the renewable energy when it is available and then supplying it to the grid as demand requires. This not only helps the grid to balance demand, it mitigates the effect of intermittent supply as well as increasing the amount of green energy in the UK’s energy mix, reducing reliance on fossil fuels and CO2 emissions. Smart use of energy reduces the load on the grid, boosts reliability, and provides a business with greater control of its consumption.
The viability of energy storage solutions is increasing as businesses introduce flexible funding options that allow customers to implement the technology and receive the benefits without investing a significant portion of capital expenditure.
Experienced providers of energy storage systems can deliver a bespoke concept-to-completion service which ensures that this complicated technology is suited to the needs of the client. They will also be able to provide advice on optimising processes and minimising consumption, while creating a solution to suit specific needs and maximise ROI.
