Dynamic electricity pricing means that different rates are charged depending on the moment of use, reflecting the varying costs associated with the supply of electricity at different times. This technique is mainly used by the Distribution System Operator (DSO) to manage grid constraints by encouraging customers to reduce their consumption during peak demand. What this means is that the rate increases during periods of high demand, and is reduced when demand is lower. In some countries, the difference between these two rates can be significant, as is the case in Israel, where the AVIEM project has been undertaken.
The Project
Crisis response organisation, AVIEM, and its client - a specialist in the development and operation of energy storage and microgrid projects – were faced with the challenge of managing the electricity usage of their end client, an Israeli cooling warehouse, where the electricity price was increasing fivefold during peak hours. Given the nature of the industry in question, the electricity consumption remains constant 24 hours a day, so it is difficult to contemplate a considerable reduction in their consumption during peak hours despite the higher costs. Therefore, a solution needed to be found that would enable a reduction in electricity costs, without impacting business continuity.
The Solution &Benefits
In order to address these requirements, AVIEM opted to integrate an energy storage solution that would facilitate energy arbitrage. This would enable the batteries to charge from the grid during off-peak demand, when electricity is cheaper, and use it during peak periods thus consuming less from the grid, in this case between 5 p.m. and 10 p.m., when the rate is higher.
The Energy Storage System
- 100kVA / 186 kWh Battery Energy Storage System (ESS) from Socomec, SUNSYS HES L, has been installed.
- PMS functionalities for on-grid application
- Communication architecture & BMS functions
The integration of the ESS has resulted in a reduction in electricity billing, which in turn has substantially reduced the operational costs of the cooling warehouse. In the future, it will be possible to complement this application with photovoltaic self-consumption in order to maximise the value of the storage asset.
Next steps
In the coming years, AVIEM plans to install Socomec Energy Storage Systems in various commercial and industrial sites, mostly focused within the agricultural industry for a similar application, whilst also introducing an off-grid operation to replace diesel generators.