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Energy Storage Applications: Front-of-the-Meter vs. Behind-the-Meter

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10 Oct, 2024

This post was originally published on Power Sonic

As the global shift towards clean energy continues, energy storage systems are critical in transforming how we generate, store, and consume electricity. The energy storage market nearly tripled in 2023, the most significant year-on-year gain on record. The growth is driven by government mandates and targeted subsidies, as well as the need to balance renewable energy sources, improve grid reliability, and enable consumers to manage energy more effectively.

Understanding the different energy storage applications is essential to grasp the full potential of energy storage. Energy storage applications can be broadly classified into front-of-the-meter and behind-the-meter applications. Front-of-the-meter applications serve utilities and grid operators by enhancing grid stability. In contrast, behind-the-meter applications empower consumers to optimize energy usage, reduce costs, and improve energy resilience. This article will explore the applications of energy storage systems in detail to understand how energy storage is utilized.

Types of applications of front-of-the-meter and behind-the-meter.

Energy Storage Applications: Front-of-the-Meter (FTM)

Front-of-the-meter (FTM) refers to energy storage systems connected to the grid at the utility level before electricity reaches the end-users. These systems help stabilize the grid, manage large-scale energy demands, and support renewable energy integration.

Energy Arbitrage

Energy arbitrage involves grid operators buying wholesale electricity when prices are low, storing it in a battery energy storage system, and reselling it when prices are high. This application allows operators to capitalize on price fluctuations in the market, helping offset energy costs.

Load Following

Load following is often considered a subset of energy arbitrage. It involves adjusting the electricity output of energy storage systems to match real-time fluctuations in demand. As demand rises, stored energy is output, and as demand decreases, storage systems input or absorb excess generation. For instance, a battery energy storage system would discharge when demand increases and charge when demand decreases. This application helps maintain grid stability by ramping up or down the electricity supply based on consumption data.

Frequency Regulation

Frequency regulation involves balancing supply and demand on a second-to-second basis to maintain the grid’s stable Alternating Current (AC) frequency, typically 60 Hz or 50 Hz, depending on the region. If power demand exceeds supply, the frequency drops, risking power outages. In contrast, if power generation exceeds demand, the frequency rises, which can cause damage to the grid or connected devices. With millisecond-fast response times, battery energy storage systems are increasingly used for frequency regulation applications. They help grid operators manage the growing variability in supply and volatility in frequency caused by renewable energy sources, helping to ensure grid stability.

battery energy storage system
Battery energy storage systems are often used for frequency response.

Voltage Regulation/Voltage Support

Voltage regulation or voltage support utilizes energy storage systems to maintain stable voltage levels on the grid. These systems inject or absorb reactive power to maintain consistent voltage and prevent fluctuations. The injection of reactive power is crucial to compensate for losses along transmission and distribution lines. Energy storage, particularly battery energy storage, is increasingly being used for this application due to its fast response times and ability to be located close to end users.

Reserve Capacity

Reserve capacity ensures that power flow and frequency remain stable if a power-generating asset goes offline. Traditionally, generating assets would be run with a small percentage of reserve capacity, which would only be used in emergencies, such as unexpected surges in electricity consumption or generation outages; this is a highly inefficient method as the generators are not utilized to their full potential. Fast-responding energy storage systems like batteries, capacitors, and flywheels can replace this, allowing generators to operate closer to total capacity. Reserve capacity is divided into:

  • spinning reserve – responds within 10 seconds
  • supplemental reserve – responds within 10 minutes
  • backup supply – responds within one hour

These storage systems provide quicker, more efficient responses, reducing waste and maintaining grid stability.

Renewable Energy Firming

Renewable energy firming uses energy storage systems to stabilize the variability of renewable sources like solar and wind. When renewable generation exceeds demand, like during windy nights or sunny days, excess energy can be stored and released later during low generation or peak demand periods. This application smooths out fluctuations in renewable energy output, ensuring a more consistent and reliable power supply. By firming intermittent renewables, energy storage helps utilities integrate more clean energy into the grid while maintaining grid stability and reducing fossil fuel reliance.

Renewable energy firming - applications of energy storage systems
Energy storage systems are used in combination with renewable energy generators.

Transmission and Distribution (T&D) Deferral

As electricity demand grows, energy storage systems can defer or reduce the need for costly transmission and distribution infrastructure upgrades. This storage application offers cost savings by avoiding buying new equipment. It also allows the same energy storage system to be used for other applications. This dual purpose maximizes the financial and operational return on investment for energy storage.

Transmission Congestion Relief

Congestion occurs when the demand on a transmission line exceeds its capacity. Grid operators charge utilities higher prices to use these transmission lines at peak times. By deploying energy storage systems downstream of areas of congested transmission, electricity can be stored during peak congestion times and dispatched when the congestion level eases. This application helps reduce transmission bottlenecks and lowers associated costs.

Black Start

In a grid-wide power outage, energy storage systems can provide the necessary power to restart the grid, an application known as a black start. Battery energy storage systems are ideal for black start applications, as they can operate independently without a grid connection. This grid independence allows them to provide the initial power to restart other grid systems after a blackout. Unlike traditional generators, batteries can quickly energize other grid systems, enabling faster and more efficient recovery after power outages. Their ability to supply power almost instantly makes them a reliable option. There have been examples of grid-wide outages in Italy, the United States, and Australia, all of which required a black start.

Applications of Energy Storage: Behind-the-Meter (BTM)

Behind-the-meter (BTM) refers to energy storage systems installed on the consumer side of the electricity meter. These systems are used primarily by commercial and industrial (C&I) and residential customers in applications to optimize energy usage, reduce costs, and increase reliability.

Solar Plus Storage

When combined with solar panels, energy storage enables consumers to store excess solar energy generated during the day for use during the evening or on cloudy days. This application maximizes self-consumption and reduces reliance on the grid, leading to lower electricity bills. This energy storage application is valuable in locations where utilities offer little financial incentive to feed excess solar energy back to the electric grid. Solar Plus storage is ideal for both residential and commercial battery storage.

Time-of-Use Bill Management

In areas with time-of-use (TOU) pricing, energy costs vary depending on the time of day. Energy storage allows consumers to take electricity from the grid during off-peak hours when prices are lower, store it, and then use it during peak hours when prices would typically be higher to reduce energy costs. These cost savings are achieved primarily through a strategy known as load shifting.

Demand Charge Reduction

Many commercial and industrial customers globally face electricity bills based on not just their energy consumption but also their highest peak power draw. This fee for the highest peak power draw used over the billing period is a demand charge. It can make up 30% – 70% of the electricity bill. Energy storage helps to reduce demand charges by discharging stored energy during periods of peak power draw, known as peak shaving, effectively reducing the customer’s peak demand.

EV Charging Infrastructure

Energy storage systems support EV charging stations by storing energy drawn during off-peak hours and discharging it during high-demand periods. This application reduces grid strain and lowers operational costs, including demand charges. Additionally, energy storage can stretch available power, allowing more powerful DC fast charging stations without needing costly grid upgrades. By buffering the power supply, battery storage systems ensure that EV chargers can operate at higher power outputs, delivering quicker charging to vehicles while minimizing the need for significant infrastructure changes.

EV charging infrastructure with energy storage
A battery energy storage system is used to enable high-powered EV charging stations.

Demand Side Response (DSR)

Demand-side response (DSR) involves adjusting electricity consumption in response to signals from the grid, typically during periods of high demand. Residential and commercial consumers reduce or shift their energy use to help balance supply and demand, often in exchange for financial incentives. Using energy storage systems, consumers can store power drawn during off-peak hours and discharge it during peak times, allowing them to participate in DSR programs without disrupting operations. DSR supports grid stability while offering revenue-generating opportunities for consumers.

Uninterruptible Power Supply (UPS)

Energy storage can act as an uninterruptible power supply and provide backup power during a power outage. This application ensures critical operations and systems can continue without disruption, enhancing reliability for businesses and residential customers. Recent studies show that blackouts and power outages have worsened in number and duration, emphasizing the need for robust and reliable backup power.

Microgrids

Microgrids are localized energy grids that can operate independently or in conjunction with the electric grid. Energy storage enables microgrids to store and intelligently manage energy from renewable sources, providing reliable power during outages or when disconnected from the electric grid.

Energy storage systems are essential in modernizing how we produce, store, and consume electricity. From stabilizing the grid at the utility level through front-of-the-meter energy storage applications like energy arbitrage, frequency regulation, and voltage support to empowering consumers behind the meter with tools for demand charge reduction, time-of-use management, and enhanced resilience, energy storage technology plays a pivotal role in optimizing energy use. As renewable energy expands, energy storage’s flexibility, efficiency, and reliability will be increasingly vital in supporting a cleaner, more resilient energy future.

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Insurance sector digs into impact of mandatory climate reporting

Insurance sector digs into impact of mandatory climate reporting

Businesses are being encouraged to prepare for the impact of mandatory climate disclosure in Australia.

Earlier this year, the federal government passed amendments to the Corporations Act 2001 (Cth) and the Australian Securities and Investments Commission Act 2001 (Cth), resulting in mandatory climate reporting for larger businesses in Australia.

The issue was examined during a recent address to members of the Underwriting Agencies Council, with particular attention paid to how the new legislation will affect the insurance sector.

Speaking at the event, Prateek Vijayvergia, Xceedance Business Leader – Key Accounts, Australia and New Zealand, said that while 75% of ASX 200 companies were committed to or already performing climate reporting, the number fell to 10.5% for broader ASX companies.

“There’s a lot more awareness and commitment and urgency that we see in the Australian market now and this is not limited only to the insurance business, but for all larger Australian businesses,” he said.

“Although this is all good, there is a gap in climate-related reporting among ASX-listed entities, and the depth and the quantification.”

Joining Vijayvergia in the discussion was Sharanjit Paddam, Principal – Climate Analytics at Finity Consulting, who said that from 31 December 2025, in addition to an Annual Report, large companies will need to submit a Sustainability Report — what Paddam referred to as “the home for ESG disclosures”.

Four pillars underpin the disclosure standards — governance, strategy, risk management, and metrics and targets. Paddam emphasised that the devil is in the detail.

“You not only have to disclose the financial impacts on your balance sheet today and your income statement today, but also in the short-, medium- and long-term future,” he said.

“They (ASIC and APRA) want hard numbers to be put in the accounts about how climate change is financially going to affect the operations of the company.”

Paddam explained: “At the heart of the disclosure is really what are the financial impacts of climate change on your company, investors, customers and shareholders; to understand that and to allocate capital and make investment decisions informed by how climate change might affect your business.”

Paddam added that companies need to consider their own impact on climate change.

“The world is changing in disclosures in a very big way over the next few years, and companies are going to have to think about not just accounting for their financial outcomes, but also their climate outcomes,” he said.

“These are mandatory standards — this is locked in, and it will be required to happen over the next few years, and it is intended that these standards will change the economy and they will drive changes throughout the way we do business.”

A particular challenge will be the reporting of Scope 3 emissions — those indirectly generated by the activities of an organisation — due to lack of data, methodology and resources.

“What’s really helping all of us is the advancement in technology so there are better ways of collecting information and data around emissions,” Vijayvergia said.

“And also, to then slice and dice that information so it can be used to make a plan around climate risk.

“It’s becoming more comprehensive and almost integral to the overall reporting that’s happening for an organisation.”

Organisations impacted by these legislative changes include those that produce accounts under the Corporations Act and meet any two of the following criteria: consolidated assets more than $25m; consolidated revenue more than $50m; or 100 or more employees.

Paddam said the new requirements would capture some of the larger underwriting agencies and brokers.

“It’s an opportunity to look at the services that you are providing and how good a partner you are for your insurance provider, or as a distributor of insurance products, to see where you could uplift your services in this respect,” he advised.

“The things we insure, the things we invest in, are all intended to change as a result of these disclosures, and getting your heads around that quicker and faster than your competition is very important.”

Image credit: iStock.com/pcess609

Accessible Data Makes Renewable Energy Projects Possible Worldwide

Accessible Data Makes Renewable Energy Projects Possible Worldwide

Accessible Data Makes Renewable Energy Projects Possible Worldwide
jschoshinski
Thu, 11/14/2024 – 18:52

High fidelity, publicly available data is essential for mobilizing clean energy investment and informing renewable energy policy and deployment decisions, but access to this data is a critical barrier for many countries aiming to develop and optimize their clean energy resources. Recognizing the importance of tools that offer accessible data to inform renewable energy planning and deployment, the USAID-National Renewable Energy Laboratory (NREL) Partnership developed the Renewable Energy (RE) Data Explorer. RE Data Explorer is a publicly available geospatial analysis tool that provides free global renewable energy resource data to inform policy, investment, and deployment decisions for solar, wind, and other energy resources. 
Two of the thematic days at COP29 are focused on energy and science, technology, innovation, and digitalization. RE Data Explorer is a great example of how digital technologies can play a role in promoting clean energy and addressing the climate crisis. The tool also delivers on the commitment USAID made at COP28 to make investments that will “support technical assistance programs and partnerships to strengthen subnational climate preparedness.”
The use of USAID-NREL public data in Tanzania, available on RE Data Explorer, offers a direct example of the impact of accessible data on the implementation of renewable energy projects. Tanzania is working to accelerate the deployment of renewable energy and decarbonize its grid, aiming for 30-35 percent emissions reduction by 2030. A major challenge to pursuing this goal is the lack of reliable, long-term renewable energy resource data for project planning.
NextGen Solar, a private sector partner of USAID Power Africa, used USAID-NREL data specific to Tanzania to support the development of its renewable energy projects in the country. The company, which specializes in building and operating utility-scale solar photovoltaic (PV) power plants in sub-Saharan Africa and small island nations, utilized USAID-NREL public data to develop the world’s largest PV-hybrid solar mini grid in rural Kigoma, Tanzania. USAID-NREL public data enabled NextGen Solar to perform technical feasibility studies to forecast electricity generation in an area previously lacking reliable, affordable power. Thanks to this reliable data and analysis, NextGen Solar was able to mobilize $6 million in investment to build the plant. This 5-megawatt (MW) plant has now been in commercial operation for over 3.5 years and supplies electricity to over 65,000 homes, the region’s largest hospital, and three schools. It has also helped the Government of Tanzania save an estimated $2.2 million annually while reducing carbon emissions and demonstrating the viability of utility-scale solar power to sub-Saharan Africa.
The application of USAID-NREL public data in Ukraine is  another example of how open data can drive the mobilization of clean energy projects. Planners and developers in Ukraine are looking to incorporate more renewable energy, particularly wind and solar, as the country rebuilds its grid and searches for new means to become less dependent on foreign resources. Like Tanzania, a barrier for Ukraine was the lack of accessible, high-quality data on its wind and solar output capabilities. USAID-NREL is helping Ukraine overcome this barrier through new high-resolution solar time series data accessible on RE Data Explorer, which will help Ukraine meet the needs of stakeholders in the energy sector across the national government, academia, and private industry.
“[USAID-NREL public data] really helps with planning and understanding where the resources are—where it is most cost effective to build distributed resources that will help to decentralize the grid.”
NREL’s Ukraine program lead, Ilya Chernyakhovskiy

To better understand the broad impact of RE Data Explorer, a 2024 NREL survey gathered insights from respondents on how they applied this data in real-world scenarios. Overall, respondents reported evaluating and planning over 111,000 MWs of solar and wind projects, with a potential investment of over $6.5 billion. End-users also reported over 1,600 MWs of solar and wind energy with over $1 billion  in investment that has been approved and financed. For context, according to the Solar Energy Industries Association (SEIA), 1,600 MWs would power approximately 275,200 average U.S. homes and 111,000 MWs would power approximately 19.1 million.
One particular real-world example provided by the survey came from a respondent from climate tech startup Ureca who shared that their company pursued a .3MW solar project in Mongolia that was approved and financed. Ureca’s project “focuses on small PV systems for households in Mongolia that currently use raw coal for heating.” This initiative, called Coal-to-Solar, is now helping low-income families transition from coal to renewable energy in Ulaanbaatar, Mongolia—the coldest capital in the world—as part of a Just Energy Transition pilot aimed at reducing reliance on coal.
The outcomes of these projects also highlight how USAID and NREL are working together to implement USAID’s 2022-2030 Climate Strategy. In accordance with the plan’s strategic objective, “Targeted Direct Action: Accelerate and scale targeted climate actions,” projects informed by USAID-NREL public data in Tanzania, Ukraine, and Mongolia employed context-sensitive approaches to “support climate change mitigation and adaptation efforts in critical geographies, [and] mobilize increased finance.” Furthermore, USAID and NREL’s work focused on accessible data supported Intermediate Result 1.1 in the plan, which aims to “catalyze urgent mitigation (emissions reductions and sequestration) from energy, land use, and other key sources.” 
From accelerating Tanzania’s clean energy transition, to aiding Ukraine’s rebuilding efforts, to enabling clean energy projects across the world, USAID-NREL public data is helping users and local communities reduce greenhouse gas emissions, promote sustainable development, and pave the way for a cleaner, more resilient future. 
For more information about RE Data Explorer, watch this video. To learn more about how high-resolution solar data is enabling energy expansion across two continents, read this NREL article.

Teaser Text
USAID-NREL’s RE Data Explorer is a great example of how digital technologies can play a role in promoting clean energy and addressing the climate crisis.

Publish Date
Thu, 11/14/2024 – 12:00

Author(s)

Emily Kolm

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Blog Type
Blog Post

Strategic Objective

Mitigation

Region

Global

Topic

Emissions
Low Emission Development
Climate Policy
Climate Strategy
Climate Strategy Implementation
Digital technology
Energy
Clean or Renewable Energy
Grid Integration
Geospatial
Locally-Led Development
Mitigation
Partnership
Rural

Country

Tanzania
Ukraine

Sectors

Energy

Projects

USAID-NREL Partnership

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