AESSEAL needed help protecting their operations from power disruptions while driving forward net zero strategies.
By deploying a battery energy storage system on your site you will have the ability to generate income for your business, reducing your total energy costs and the payback time on your investment.
Unlike a traditional Uninterruptible Power Supply (UPS) system, which cannot be used to generate additional revenue, a Powerstar UPS can be used as an income stream while serving your site with power resilience.
How is revenue generated?
In simple terms, the energy that is stored in the battery energy storage system can be sold to the National Grid, thus generating revenue for your business.
In order to do this, you will need a contract with National Grid or your local Distribution Network Operator (DNO).
These contracts can take some time to put into place and often require the services of a third-party aggregator to manage your asset and ensure your contractual obligations are fulfilled. Failure to meet these obligations can result in fines.
Demand Side Response (DSR) contracts enable a business to sell surplus energy back to the National Grid to help it meet its total demand.
This is becoming increasingly important as the National Grid has more and more intermittent power generation from renewable sources. These grid service contracts are sometimes referred to as ‘balancing services.’
By using a battery energy storage system to fulfil a DSR contract you can ensure that you sell surplus energy when it is most in demand and therefore has the best price. If you have generated the energy yourself with on-site generation then you will also be able to ensure that you get value from all of the energy you generate, rather than just what you need. For example, storing solar generated electricity when it is sunny, but you do not need it for your own site and selling it to the grid when it is most in demand.
Firm Frequency Response (FFR) services contract you to provide a certain amount of standby support per day, so that the National Grid can ensure there is sufficient generation and demand available to manage all circumstances that might result in frequency variations. A battery system is essential to be able to fulfil these contracts.
Powerstar’s microgrid control system controls the battery to dynamically manage the requirements of these contracts. By using artificial intelligence to predict your own load requirements, on-site generation, and the optimal time to be supporting the grid, it ensures you are generating the maximum possible revenue without impacting operations.
How much revenue can be generated?
In the past, many businesses have implemented battery energy storage technology with the main goal of generating revenue from grid contracts.
However, the revenue from these services is not guaranteed and the level of compensation available will no longer pay for the battery system on its own. Additionally, accessing them requires the services of a third-party aggregator who will take a percentage of the revenue for managing your asset.
For example, a DSR contract might earn you £0.075 per kWh that is supplied back to the grid. If you were able to supply 1MWh for 100 days per year you would generate £7,500 per year.
Today, generating revenue from grid contracts only makes sense as a secondary benefit. When employing battery energy storage at the heart of your energy strategy to achieve power resilience or net zero, generating revenue through grid services provides a secondary boost to improving the return on investment (ROI) of the project.
Get in touch to discuss how your business could earn additional revenue from its energy projects
Related case studies
A global leader in the manufacture of landing gear, suspension and tram coupling bearings was suffering significant scrappage caused by power disruptions.
South Staffordshire Council were looking to install a battery energy storage system that provided them with site-wide UPS resilience
The client are owners of rural cottages which provide holiday accommodation in the Norfolk countryside.
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