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System benefits of industrial battery storage: A comparison of grid and facility control and dispatch

Journal Article · · Sustainable Energy, Grids and Networks
Customer-owned, distributed battery installations are being incentivized by utilities to increase installed battery capacity. In many of these incentive agreements, the battery owner relinquishes battery control to the utility in exchange for incentive money. The industrial sector has lagged in storage installation when compared to the residential and commercial sectors. This study compares the economic advantages to utilities and industrial facilities in different dispatch control situations. The study presents a novel framework for the optimization of multiple systems using load profiles from the industrial, residential, and commercial sectors. Case studies are presented to illustrate different dispatch scenarios. Further, the simulations showed more fiscal benefit for the industrial facilities to dispatch the battery for electrical demand reduction than utility dispatch. In the case studies, facility dispatch control resulted in an increase of facility savings by a factor of about 8.7 when compared to utility dispatch. Battery size plays a significant factor on the impact of the grid’s generating costs, showing that larger batteries can provide significant benefit even if dispatched by the facility. Future policies concerning industrial battery installations should consider overall economic benefits to utility and facility in the form of rate structures and incentive participation based on battery size.
Research Organization:
Univ. of Utah, Salt Lake City, UT (United States)
Sponsoring Organization:
USDOE; USDOE Office of Energy Efficiency and Renewable Energy (EERE)
Grant/Contract Number:
EE0007712; EE0009708
OSTI ID:
2418530
Alternate ID(s):
OSTI ID: 1900079
Journal Information:
Sustainable Energy, Grids and Networks, Journal Name: Sustainable Energy, Grids and Networks Journal Issue: C Vol. 32; ISSN 2352-4677
Publisher:
ElsevierCopyright Statement
Country of Publication:
United States
Language:
English

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