COMMERCIAL AND INDUSTRIAL ENERGY STORAGE
Increase Profitability by Reducing Electricity Costs:
- Customer is a leading provider of facility solutions with several billion dollars in revenue and over 100,000 employees in offices throughout the United States and various international locations.
- They wanted to use energy storage in behind-the-meter applications to save their customers money on their electricity costs.
- They needed the storage projects to have a <7 year breakeven at least a 12% IRR.
- The primary drivers for generating savings were Time-of-Use shifting and Peak Demand reduction.
- According to GSM research, demand charges contribute anywhere from 20% to 50% of a C&I customer’s electricity bill.
- Most large U.S. based C&I customers are on TOU tariffs, and therefore benefit from managing when they use electricity from the Grid.
- Need to be able to have a good rate capability e.g., C/2 to hit the peak load reduction requirements and be able to also time shift usage.
- Battery must be able to perform >7300 100% DoD cycles as it effectively gets more than one full cycle per day and must last for 20 years of full cycling.
- Encell can enable these financial parameters to be met in markets where the spread in demand charges between Peak and Off-Peak periods are >$10 per kW.