• • • DATA CENTRE MANAGEMENT • • •
Generating revenue through energy storage
Alastair Morris, chief commercial officer at Powerstar, explains why switching to modern Battery Energy Storage (BESS) technology is more economical and can even generate new revenue
M
aintaining a reliable power supply to business-critical systems is vital for the smooth and secure running of
data centres. The benefits of a BESS over a traditional UPS
are well documented. A UPS protects specific equipment during an interruption in power supply. However, it will be idle most of the time yet still costing money, with a loss of capacity typically between 10% and 15%. By comparison, a BESS offers site-wide
protection and an energy loss of around 1%. These cost-savings, together with the related reduction in carbon emissions, present a compelling business case for BESS technology. In the current energy landscape, there are
further reasons for businesses to invest in BESS, facilitating engagement with balancing services and making the most of the National Grid’s Demand Side Response (DSR) opportunities. Balancing services are used by the Grid to even
out demand across the country’s power supply. As renewables form an increasing proportion of the UK’s energy mix, their inherent inflexibility makes these balancing services critical, helping prevent disruptions to supply. Businesses and organisations can engage with
the Grid through Demand Side Response, which gives the potential to generate new revenue streams while supporting energy security for the nation.” The infographic provides an overview of DSR
and the key elements of the service and contract between a company and the Grid. In essence, the rationale for DSR comes from a shift away from the old model of centralised energy dispatch to a broader range of distributed power generation, alongside changing patterns in demand from the increased automation inherent in Industry 4.0 and our evolving industrial landscape. Intelligent energy management allows
businesses to increase or decrease their demand in response to peaks and troughs in generation from the Grid and demand from energy users, thus avoiding the need for additional generation. Alastair highlights the economic need for balancing, Maximum demands on the UK’s energy supply
are felt for less than one percent of the year, so meeting this demand using new generation capacity would be grossly inefficient and hugely
Another vital element of BESS, renewable
firming offers a built-in capacity to store renewable energy generated on-site, allowing for wind- or solar-generated power to be retained for use when needed or to be sold back to the Grid. Battery storage also allows for energy to be
purchased when prices are lower and either used when required at peak times or supplied back to
accomplished depends largely on the nature of a company’s operations and how quickly it can respond to the Grid’s demands. At Powerstar, we advise customers on their
options, helping them recoup investment in BESS to harness and really capitalise on the additional benefits that come from a resilient energy management strategy.
costly, with equipment lying dormant for most of the time. This is particularly sobering when one considers
that standby generation capacity adds about £1 billion to end users’ energy bills each year, and we are all aware that energy costs are only going to increase. For businesses, a significant reason to engage
with energy balancing is the potential for new revenue, either through a direct contract with the Grid, the local Distribution Network Operator (DNO) or, for smaller-scale operations, via an aggregator. Companies receive a guaranteed income if they can be flexible, and this is where a BESS offers significant, additional benefits over traditional UPS.
the Grid. The flexibility demanded by balancing services is one of the greatest assets of a BESS, which can rapidly draw electricity down from the Grid or release it back to be available when demand is high. This enables businesses to fulfil their
contractual obligations of flexibility and rapid response, and to capitalise on the revenue potential from helping to balance the UK’s power supply. There are a range of opportunities for companies
and organisations to engage with DSR – whether through frequency services, firm frequency response, or short-term operating reserve. Deciding which balancing service is most feasible and establishing the revenue level that can be
16 ELECTRICAL ENGINEERING • JUNE 2022
electricalengineeringmagazine.co.uk
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