A BESS system equipped with powerful hardware is only half the story. The other half, which determines the profitability and ROI of the project, lies in the intelligence of the software – specifically the operating strategy programmed into the Energy Management System (EMS).
EMS can be programmed to execute a variety of strategies, depending on your business goals and the structure of the electricity market. Here are four of the most common and smart strategies EMS uses to turn your BESS into a “money-making machine.”
1. Energy Arbitrage
- Concept: This is the most basic and direct strategy, based on the principle of “buy low, sell high”.
- How EMS works:
- Analysis: EMS is programmed with EVN's 3-level electricity price schedule (off-peak, normal, peak).
- Act: It will automatically command the BESS. Fully charged from the grid at night (off-peak hours, cheapest prices) and discharged to supply the factory during the day (peak hours, most expensive).
- Result: Businesses will buy less electricity from the grid at high prices, and instead use the cheap energy that has been stored, creating a direct saving on their electricity bills.
2. Peak Shaving
- Concept: The strategy focuses on reducing “demand charges,” a fee on many large businesses’ electricity bills that is based on the highest level of usage during a billing cycle.
- How EMS works:
- Analysis: The EMS continuously monitors the total power consumption of the plant. It is able to predict when the load is about to reach a new peak.
- Act: As soon as the load is detected to be about to exceed the threshold, the EMS will immediately command the BESS to discharge energy to meet the increased load. This keeps the power purchased from the grid from exceeding the registered peak level.
- Result: Reduce or completely eliminate peak power charges, a huge expense in the electricity bills of manufacturing businesses.
3. Renewable Energy Optimization
- Concept: This strategy aims to maximize 100% of output from rooftop solar systems.
- How EMS works:
- Analysis: The EMS simultaneously monitors the solar power output being generated and the plant's consumption.
- Act:
- When solar output > demand, EMS will direct the excess electricity into charger for BESS.
- When solar output < demand (e.g. evening, cloudy sky), EMS will Discharge stored solar energy from BESS for use.
- Result: Maximize clean energy self-consumption, reduce grid-purchased electricity, and accelerate payback time for both solar and BESS systems.
4. Participate in Demand Response
- Concept: This is a more advanced strategy, where businesses can receive payments from the electricity utility (EVN) for voluntarily reducing their electricity consumption during times of grid stress.
- How EMS works:
- Analysis: The EMS receives a “load response event” signal from the utility.
- Act: Instead of cutting production, the EMS would immediately order the BESS to release power to the plant. From the grid's perspective, the plant would appear to have reduced its consumption.
- Result: Enterprises can maintain normal production activities while receiving incentive payments from the load response program, creating a new source of revenue. This mechanism is being developed in Vietnam and will be a great opportunity in the future.
The real power of a BESS system lies in the EMS’s ability to execute intelligent operational strategies. An advanced EMS can combine multiple strategies simultaneously, continuously analyzing and making the most optimal decisions to maximize economic benefits. When choosing a BESS solution, ask the vendor carefully about the algorithms and operational strategies that their EMS software can support. That is the key to maximizing ROI on your investment.
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