What is commercial and industrial energy storage?

The industrial and commercial energy storage we often talk about refers primarily to electrochemical energy storage systems deployed for a wide range of industrial and commercial customers. Simply put, energy storage devices can be thought of as large-scale power banks. They charge during periods of low electricity prices and discharge during peak hours to power business operations, thereby reducing enterprises' electricity costs.

What are the benefits of installing a energy storage system?

(1) Peak-Shaving and Valley-Filling: By leveraging the price difference between peak and valley periods, charge during valley and flat periods and discharge during peak and super-peak periods, thereby reducing enterprise electricity costs.
(2) Demand-side electricity charges: Energy storage systems can help shave peaks and fill valleys, eliminate peak loads, smooth out the electricity consumption curve, and reduce demand-side electricity charges.
(3) Dynamic Capacity Expansion: The transformer capacity for a user is typically fixed. In most cases, if a user needs the transformer to operate under overload during a specific period, it becomes necessary to upgrade the transformer’s capacity. However, after installing a matching energy storage system, the system can discharge stored energy during that period, thereby reducing the transformer’s load and lowering the costs associated with capacity expansion and renovation.
(4) Demand Response: After installing a energy storage system, if the power grid issues a demand response signal, customers can avoid power restrictions and avoid paying the high electricity tariffs for that period. Instead, they may even participate in demand-response transactions through their energy storage system and earn additional compensation.

What are the main application scenarios for commercial and industrial energy storage?

Commercial and industrial energy storage is primarily used in applications with predictable electricity consumption patterns, such as charging stations, industrial parks, data centers, and telecommunications base stations.

Under what circumstances is it appropriate for a company to install an energy storage system?

(1) High electricity demand: Enterprises and scenarios with substantial electricity demands—such as industrial parks, manufacturing facilities, and data centers—typically experience highly volatile electricity consumption patterns. Commercial and industrial energy storage systems can help these enterprises smooth their electricity consumption curves and reduce electricity costs.
(2) High power quality requirements: Some enterprises and industrial parks experience low voltage levels during the production process, especially during peak load periods when the terminal voltage drops significantly below the acceptable range. Equipping commercial and industrial energy storage systems can stabilize power output, improve power quality, and prevent disruptions or fluctuations in power supply from impacting production.
(3) Large Peak-Valley Electricity Price Difference: Enterprises that use electricity are subject to local time-of-use pricing policies, resulting in a relatively large average peak-valley price difference—generally recommended at 0.8 yuan/kWh or higher. If an enterprise’s load profile covers the peak period (and the super-peak period, if applicable), and all of its electricity consumption occurs during evening hours, then constructing a storage system would not be suitable. During the valley and flat periods, after accounting for the enterprise’s existing load, the transformer will still have sufficient remaining capacity to charge the energy storage system. Since enterprises have few days dedicated to production shutdowns for maintenance and operate at lower capacity during the off-season, the energy storage system can be utilized for more than 300 days per year. If the utilization rate of the storage system is low, the return on investment will also be reduced.

What information does a company need to know when configuring energy storage?

(1) User electricity consumption type: Clearly identify whether the user’s electricity consumption is for large-scale industrial use or general commercial and industrial use.
(2) Billing Method: Clearly specify whether the user’s electricity billing method is a single-rate or two-part tariff. Demand charges should take into account maximum demand control without affecting the basic electricity charge. The above two points can be determined by reviewing the electricity bill (typically covering the most recent 12 months), which primarily includes information on electricity prices and details regarding demand or capacity charges.
(3) Transformer Capacity: When the energy storage system is charging, it functions as a load. If the existing transformers do not have sufficient spare capacity, this will limit the installed capacity of the energy storage system. It is necessary to understand the current usage status of the existing transformers and their load occupancy levels, particularly whether there is any spare capacity available during off-peak hours in the evening. Whenever possible, collect data on the transformer loads within the park and the corresponding electricity load curves (you can obtain load data for the past 12 months from the power grid).

What are the investment, construction, and operation revenue models for commercial and industrial energy storage?

(1) The integrated operator will handle the investment, construction, and operation; customers do not need to contribute any capital—instead, they only need to provide the site for the energy storage system’s construction. The revenue generated will be shared between the integrated operator and the user.
(2) Both parties will share the revenue, with the specific revenue-sharing arrangement to be negotiated based on the customer’s electricity consumption and the scale of the energy storage system.
(3) Users independently invest in and build energy storage systems, while the integrated operator is responsible for operation and commits to guaranteeing customer returns.