It is widely known (in our data center world) that any new technology contributing to high availability and risk reduction of outages will always be welcomed.
If, in addition, it enhances quality, optimizes energy use, reduces costs, and facilitates the use of renewables, then we are talking about a technology that is essential for the conditions we face today and in the near future.
Battery Energy Storage Systems (BESS)
BESS are designed to store energy from the power grid or renewable sources and supply that energy back to the grid or to specific loads. These systems are electrochemical devices that store energy and release it when needed, functioning as a distributed energy resource (DER).
Unlike an uninterruptible power supply (UPS), BESS is designed for applications that require long-term energy storage and supply, and it is not intended as a solution for uninterrupted power due to the time required to recharge equipment.
Trends Driving BESS Adoption:
- Increase in Renewable Energy: The penetration of intermittent renewable energy sources, such as solar and wind, is creating grid stability challenges that BESS can help mitigate.
- Volatile Energy Prices and Supply Constraints: Fluctuating energy costs and supply limitations make BESS attractive for improving energy independence and reducing electricity bills..
- Government Policies and Incentives: Growing pressure to reduce carbon emissions and governmental support for renewable energy are promoting BESS adoption..
- Advances in Battery Technology: Improvements in lithium-ion battery technology have made BESS more efficient and affordable.
- Decreasing Costs: The ongoing reduction in BESS component costs is making this technology a more attractive investment.
Paradigm Shift in Energy Management
The implementation of BESS technology opens up nearly unknown options in data centers for managing energy consumption:
- Reduction of Demand Charges:
Demand charges on electricity bills are based on the maximum amount of energy a data center consumes in a short period (usually 15 to 30 minutes) during the billing period. These charges can represent a significant portion of total energy costs.
A BESS can store energy during periods of low demand and then release that energy during peak consumption periods, thus avoiding the need to draw as much energy from the grid during high-demand times. This reduces demand peaks and, therefore, the associated demand charges.
2. Time-of-Use Rate Management:
Electricity rates typically vary by time of day, with higher rates during peak demand hours and lower rates during off-peak hours.
A BESS can be charged during off-peak hours when rates are lower and then use that stored energy during peak hours when rates are higher. This helps to reduce the total cost of consumed energy.
3. Participation in Grid Service Markets:
Data centers can participate in grid service markets by offering energy storage capacity to the power grid to help balance supply and demand during critical times. Additionally, with a BESS, frequency regulation can be provided. By offering these services, data centers can receive monetary compensation from utilities or independent system operators.
4. Energy Arbitrage:
This strategy involves purchasing electricity when prices are low and selling or using that energy when prices are high.
The BESS charges during periods when energy prices are low (e.g., at night) and discharges during periods when prices are high, either for the data center's own consumption or to sell energy back to the grid. This maximizes the value of stored energy and reduces energy costs.
Increased Self-Consumption of Renewable Energy
Data centers with renewable energy generation facilities, such as solar panels, can use a BESS to store excess energy generated during periods of low demand.
Instead of selling the excess renewable energy to the grid at less favorable rates, the BESS can store this energy for later use, allowing the data center to rely less on the power grid and save on energy costs.
In summary, in a present and future where energy consumption data and projections for data centers are alarming, battery energy storage systems play a critical role in addressing this. Energy savings and the use of renewable energy become more viable and impactful, which is key to beginning to respond to this uncertain context.
