Battery Storage Potential: Strategies to Increase Usefulness

In South Africa, most people associate battery storage with backup power. If a facility—such as a home, commercial building, or other facility—has batteries, there is an expectation of temporary grid autonomy.

A similar misconception occurred in the early days of grid-tied solar, where people assumed that installing solar panels would provide grid independence during power failures. However, this is not always the case, and there are many exceptions. Battery Energy Storage Systems (BESS) have a diverse range of applications that go beyond providing backup power alone.

These systems can function as both risk management and cost-saving tools. By effectively managing risk, all applications of battery storage, including backup power, contribute to cost savings.

Optimizing Battery Storage Applications

1. Risk management

battery storage
Battery storage is commonly known for its ability to provide backup power. It is a form of risk management where battery storage is used to keep power on to a facility during a power outage.

Additionally, the frequency of load shedding will incur regular costs in the form of diesel for backup generators. Opting for using battery storage for backup power will avoid these costs, resulting in significant savings.

2. Cost saving

Simply put, this is when you are using a battery to make money on a regular basis.

Arbitrage

This applies to customers with a variable energy tariff. Batteries are charged either at night when the electricity cost is lowest, or during the daytime using solar energy. During the morning and afternoon peak (tariff) times, the stored energy is released and used to reduce utility consumption. The cost savings are realized through the tariff differential between peak and off-peak tariffs.

Peak demand management

Reducing maximum demand tariff through kVA reduction involves discharging batteries at strategic times. This ensures that the demand from council is kept below a certain level to avoid maximum demand charges. Care should be taken when recharging batteries to ensure maximum demand is not accidentally exceeded, which would negate the benefit.

Increasing renewable penetration

The amount of grid-tied PV installed can rarely exceed the customer’s demand. This is true for behind-the-meter generation, and the current situation in South Africa where energy is typically not fed back to the utility (Eskom). Although rare exceptions exist, they are not the norm. Solar energy that would otherwise be wasted or lost can now be stored and used later when solar production has stopped.

Off-grid

Having no grid available becomes expensive. Customers have only one option: burn diesel. Especially outside city limits, diesel must be transported, stored, and used to run generators, which require servicing.

A renewable energy system that utilizes solar power to generate electricity and batteries for storage, realizes a much lower levelized cost of energy to end users when compared to diesel generators.

Since 2008, SPS has revolutionized energy in Sub-Saharan Africa by bringing affordable, clean energy solutions to businesses. Its solutions help clients cut electricity costs and carbon emissions, delivering a sustainable approach to power. Its fully-integrated approach allows the company to create value for both its clients and its partners.

By Johan Wolmarans