With the continuous advancements in energy storage technology and the decreasing prices of lithium batteries, the cost of battery energy storage systems (ESS) is gradually decreasing, which highlights the increasing economic viability of battery energy storage applications in the commercial and industrial (C&I) sectors.. According to relevant data, the annual average growth rate of global C&I energy storage from 2021 to 2023 reached 169%.
As one of the major consumers of energy, industrial parks often face the burden of high electricity costs. Additionally, they can suffer significant losses during power outages caused by grid overloads or other failures. In recent years, under the global consensus on “carbon reduction,” many countries and regions have increasingly deployed renewable energy in their industrial parks. For example, solar panels are installed on rooftops or on the ground to generate power for park use. However, the power generation from these renewable sources is susceptible to seasonal and weather variations, resulting in volatility and uncertainty. This prevents renewable energy from reliably and consistently replacing traditional energy sources in providing a stable power supply to industrial parks.
Next, this article will discuss one of the typical application scenarios for C&I energy storage: Industrial Parks + Energy Storage.
Q What is Industrial Park + Energy Storage?
A As literally understood, Industrial Park + Energy Storage refers to deploying such energy systems within traditional industrial parks to address their specific energy needs and challenges. Traditional industrial parks typically feature a large number of equipment characterized by high power consumption, prolonged periods of high-load operation, and high energy consumption. Implementing ESS can help industrial parks balance electricity supply and demand, effectively manage energy fluctuations and peak-demand variations, ensure stable power supply, and optimize energy utilization efficiency.
Q What are the prerequisites for configuring energy storage in industrial parks?
A 1、Time-of-Use (TOU) Tariff Policy: Industrial parks must adhere to local TOU tariff policies, with a significant price differential between peak and off-peak hours (recommended at least RMB 0.8 yuan /kWh in China). The larger the price difference between peak and off-peak electricity, the higher the returns for industrial park ESS that primarily rely on peak-valley arbitrage for their profitability.
2、Coverage of High-Load Periods: The electricity consumption pattern of users should cover peak periods. If electricity is primarily used at night, it may not be suitable for implementing an ESS.
3、Transformer Surplus Capacity of Transformers: During off-peak and normal load periods, there should be surplus capacity in transformers to accommodate charging of the ESS. If the transformer load rate in the park is high, it may not be feasible to install an ESS.
4、Annual Utilization Time of ESS: The system should be operational for more than 270 days annually to ensure its long-term stability and economic viability.
Q What are the advantages of building ESS in industrial parks?
A 1、Cost Savings
Storing electricity during off-peak periods when prices are low and utilizing stored electricity during peak periods when prices are high, the peak-load shifting can significantly reduce electricity costs for industrial park enterprises.
2、Improve Power Quality and Stability
（1） Reduce Grid Pressure: Alleviating peak electricity demand during high-load periods within industrial parks, especially during daytime peaks for manufacturing enterprises. ESS can provide electricity during peak demand, reducing reliance on the grid and helping balance grid loads.
（2）Emergency Backup Power: During grid failures or power outages, ESS can serve as emergency power sources, ensuring continuous operation of critical equipment and systems in industrial parks.
3、Enhance Renewable Energy Utilization
（1）Optimize Energy Use: For industrial parks equipped with renewable energy, ESS can store surplus electricity generated from renewable sources such as solar and wind within industrial parks, smoothing power output and reducing waste, maximizing the utilization of renewable energy .
（2）Reduce Carbon Footprint: By increasing the efficiency of renewable energy utilization, industrial parks can reduce reliance on traditional fossil fuels and decrease their carbon emissions, promoting sustainable development.
4、Improve Energy Efficiency
（1）Capacity Management: ESS capacity management refers to the systematic planning, allocation, scheduling, and optimization of the system’s capacity using scientific methods and technological tools. The goal is to ensure the system efficiently meets electricity demand while maximizing effectiveness and benefits. This involves utilizing historical electricity usage data and operational data from the storage system to analyze trends in electricity load and storage demand. By doing so, the capacity configuration and scheduling strategies of the storage system can be optimized.
Capacity management for energy storage must be tailored to specific scenarios and requirements. For instance, in industrial park ESS, capacity management can help enterprises reduce grid electricity purchases during peak pricing periods, thus lowering electricity costs. In photovoltaic (PV) + ESS, capacity management can optimize the coordination between PV generation and storage batteries, increasing self-consumption rates and overall system efficiency.
（2）Deferring Grid Expansion Needs: ESS can provide power support for certain loads during peak demand periods, thereby delaying or avoiding the need for investments in expanding transmission and distribution infrastructure.
5、Economic Benefits
（1）Quick Return on Investment: ESS can deliver significant economic benefits through electricity cost savings, arbitrage from the TOU Tariff and optimized energy management, achieving a quick return on investment.
（2）Diversified Revenue Streams: Industrial parks can generate additional income by participating in grid ancillary services such as frequency regulation and voltage support, further enhancing the economic benefits of ESS.
6、Enhance Business Competitiveness
（1）Green Brand Image: Adopting renewable energy + ESS enhances a industrial park’s or company’s green image, aligning with societal expectations for environmental conservation and sustainable development, thereby strengthening market competitiveness.
（2）Policy Support: Government support policies and subsidies for green energy and energy storage projects further promote the application and development of ESS in industrial parks and help to enhance the reputation and competitiveness of such businesses.
To sum up, by implementing ESS in industrial parks, cost savings, improved power quality and stability, optimized energy utilization, enhanced economic benefits, and business competitiveness can be achieved, fostering sustainable development within industrial parks.
Q What should I pay attention to when installing an ESS in an industrial park?
A When installing ESS in industrial parks, the following aspects need to be paid attention to:
1、System Design and Planning
（1）Demand Assessment: Accurately assess the electricity demand and load characteristics of the industrial park to determine the capacity and configuration of the ESS.
（2）Compatibility: Ensure compatibility of the ESS with existing electrical infrastructure and equipment to avoid unnecessary electricity waste or equipment damage.
2、Safety
（1）Battery Safety: Select batteries with high safety performance and install & conduct safety measures such as fire prevention and explosion protection.
（2）Safety Standards: Adhere to relevant electrical and safety standards to ensure the installation and operation of the ESS comply with national or local safety regulations.
3、Economic Viability
（1）Cost-Benefit Analysis: Conduct detailed economic analysis including initial investment, operational maintenance costs, and expected returns to ensure the investment return rate of the ESS.
（2）Subsidy Policies: Understand and utilize government subsidies and incentives to lower investment costs.
4、Technology and Equipment
（1）Efficient Equipment: Select efficient and stable energy storage equipment to ensure long-term system operation.
（2）Smart Management: Equip with intelligent energy management systems to enhance operational efficiency and automation of the ESS.
5、Environment and Location
（1）Installation Environment: Choose suitable installation locations to ensure the ESS operates under optimal environmental conditions, mitigating impacts from extreme weather or environmental factors.
（2）Space Planning: Properly plan the installation space for the ESS to facilitate ventilation, heat dissipation, and ease of maintenance.
6、Operations and Management
（1）Maintenance Plan: Develop detailed maintenance plans and emergency response procedures to ensure the ESS can quickly resume normal operation in case of faults or emergencies.
（2）Monitoring System: Install real-time monitoring systems to promptly detect and address operational issues of the ESS, ensuring system stability.
7、Regulations and Policies
（1）Compliance: Ensure that the design, installation, and operation of the ESS comply with local laws, regulations, and policy requirements.
（2）Policy Updates: Stay informed about policy changes and adjust operational strategies of the ESS to maximize policy incentives.
By adhering to these considerations, ensure that the installed ESS in industrial parks operates safely, efficiently, and economically, effectively fulfilling its role in peak-load shifting, backup power, energy conservation and consumption reduction, and grid stabilization.
