Three reasons why now is the perfect time for C&I’s to make battery storage part of their energy strategy
In SolarPower Europe ’s recent market outlook, they forecast that the C&I Battery Energy Storage Solutions (BESS) market will eclipse the residential market in the next 4 years with 20.2 GWh of new capacity expected to be installed in 2029, compared to just 3.6 GWh this year.
Why? The three key reasons C&I’s are considering investing in BESS are:
How does this growth forecast compare to the macro-environment trends?
The EU, alongside most member states individually, have set legally binding net-zero targets. 2050 is the most common target date; however, some countries are pursuing more ambitious clean power goals and targeting a significantly increased proportion of their power from renewable sources by 2030.
Emaldo’s mission is to maximise the use of renewable energy and support the drive to net-zero, so we are fully behind any ambitious plans to make the world cleaner and greener.
But the switch to renewable energy comes with challenges.
Our Electricity grids are not designed for the additional capacity required in an electrified world, while the increase in intermittent energy sources and dated infrastructure exposes the grid to increasing risk of frequency imbalance. In the past 4 months, we have seen the impact of power outages in Spain, Portugal and the Czech Republic – for businesses it meant downtime and lost income, for other buildings, such as hospitals, the cost could be human, not just financial.
Enter…Battery Energy Storage Solutions
To counter the grid risk and optimise consumption in a world of intermittent supply, there is an increase in dynamic tariffs encouraging consumers to take advantage of lower prices outside of peak times, while in some regions punitive peak signals are used to discourage use when demand is at its highest.
Investing in battery storage can totally revolutionise how C&I’s manage their energy, avoiding peak times and earning income through participating in a Virtual Power Plant scheme, while ensuring security of supply. On top of that they will play a key role in building a more sustainable future at the same time.
1. Cost Avoidance – peak shaving and load shifting dodges those expensive times of day
Electricity prices in Europe have become increasingly volatile, with peak tariffs and demand charges putting pressure on operating budgets. Battery storage allows C&I users to shift their electricity consumption away from peak pricing periods and avoid expensive demand charges by discharging stored energy at just the right time.
2. Maximise Investment - having onsite renewables is about more than self-consumption
More European businesses than ever are installing rooftop solar or other onsite renewable generation to reduce their carbon footprint as part of their sustainability strategy. Without a battery, they risk wasting the energy generated outside of working hours. Battery storage ensures energy systems are optimised around when system owners should self-consume or store energy to use during peak hours.
In addition to providing this optimisation capability a Virtual Power Plant operator, like Emaldo, can utilise batteries even further, unlocking opportunities for companies to partake in flexibility and balancing markets and develop a brand-new revenue stream.
Ultimately, by adding a battery onto a solar system, companies can expect a greater Return on Investment (ROI).
3. Better Energy Resilience – A greener way to achieve energy security
Is the risk of power outages across Europe growing? Many experts think so, highlighting that existing grids are vulnerable and require significant investment as part of the energy transition. Grid reliability therefore is an increasing concern for C&I’s, where downtime can result in significant losses, or worse.
Battery systems offer backup power capabilities, ensuring continued operation of critical systems in the event of a grid outage. Where previously this backup power would be achieved through a diesel generator, it can now be achieved through an asset which actually enables greater utilisation of renewable power.
Final Thoughts
Installing a battery is a great way for C&I’s to support the shift to renewable generation, by providing storage for power generated when it’s not required and discharging it when it is. It can then have a direct, positive, impact on carbon emissions, ensuring a business can use stored renewable power at times of high demand, instead of centrally generated peak power, which tends to be sourced from gas or coal.
But a battery is more than that. It’s also a strategic asset for cost reduction, security and resilience, and revenue generation. As Europe advances towards its 2030 and 2050 climate goals, C&I players who invest early will be best positioned to thrive in an increasingly decentralised and digitalised energy landscape.
Emaldo’s C&I solution will be available to the market later this year, follow Emaldo Power on LinkedIn to be the first to hear more.