Demand Charge Management involves reducing peak electricity demand to lower costs on utility bills. Since demand charges are based on the highest power usage in a billing cycle, strategies like load shifting, battery storage, and demand response help minimize spikes. Businesses and consumers can optimize energy use, improve efficiency, and enhance grid stability by controlling peak loads. Effective management leads to cost savings and supports sustainability efforts.

Posts

Aggregation of BTM Battery Storages to Provide Ancillary Services in Wholesale Electricity Markets

/in /by

The behind the meter battery energy storage systems (BTM-BESSs) have been deployed widely by indus-trial/commercial buildings to manage electricity transaction with utilities in order to reduce customers’ electricity bills. Commercial BTM battery storages are mainly employed to cut the customers’ monthly demand peaks, which is rewarded by significant decrease in the monthly demand charge. However, given complexity of demand charge management problems, the rates of return on investments for installation of BTM-BESSs are not appealing enough. In this paper, an aggregation model for BTM-BESSs is proposed in order to provide the opportunity for the BTM-EMS units to participate in the multiple wholesale markets to provide ancillary services, in addition to the demand charge management, to maximize owners’ payoff from installation of BTM-BESSs. Finally, the efficiency of the proposed aggregation model is validated through the simulation studies on the real value data.

Read more

Optimal Sizing and Operation of Energy Storage for Demand Charge Management and PV Utilization

/in /by

This paper presents a method to determine optimal energy and power capacity of distributed Energy Storage Systems (ESS) in behind-the-meter applications to maximize local Photovoltaic (PV) utilization or minimize Demand Charge (DC) cost. The problem is solved as a multi-objective optimization model to obtain a set of Pareto optimal solutions for each scenario in each month. An approach is then presented to map the monthly Pareto fronts into a single yearly Pareto front. A cost benefit analysis has also been carried out to show the compromise between PV utilization, DC cost, and ESS cost.

Read more