Industrial Application of Battery Energy Storage Systems: Peak shaving

Abstract

The quality problems of power purchased from the public electricity grid may affect the performance of industrial equipment that are sensitive to voltage fluctuations. With the cost of energy storage systems decreasing year by year the addition of new features (e.g. voltage and reactive power control) becomes feasible in addition to industrial applications (such as UPS) that have been used before. By installing the appropriate energy storage system, peak loads can be reduced and spread throughout the day (peak shaving). With the peak shaving ESS application significant cost savings are available to both retail consumers and grid operators but the ones that could profit the most are industrial consumers as they not only pay for fixed power but for predetermined peak loads as well. The purpose of this paper is to demonstrate battery energy storage system applications used in industrial environment, highlighting the peak shaving function which has significant economic and technical potential. The design of the peak shaving function is described and explained using the consumption data of an industrial consumer.