What Are The Revenue Models For User-Side Energy Storage

User-side energy storage systems offer versatile applications and revenue models, catering to diverse energy needs. Common commercial approaches include the independent operation model, the solar-storage-charging integrated model, and the microgrid operation model. Here’s a closer look at these models and their associated profit mechanisms:

1. Independent Operation Model

This model involves installing standalone energy storage systems on the user’s premises to enhance load management and ensure reliable power supply. The primary revenue streams include:

• Peak Shaving and Valley Filling: Capitalizing on the price difference between peak and off-peak electricity rates to reduce overall energy costs.
• Demand Management: Reducing peak power usage to lower fixed electricity fees.
• Participation in Demand Response Programs: Adjusting or shifting energy consumption in response to grid dispatch commands to earn incentives.

In this model, energy storage manufacturers and users can collaborate to share operational profits. Additionally, energy storage systems often serve as uninterruptible power supplies (UPS), ensuring seamless power for critical applications.

While traditional UPS systems relied on lead-acid batteries, advancements have introduced lead-carbon and lithium-ion batteries into this space. These systems, as backup power sources, can theoretically generate additional income through peak shaving and demand response participation. However, strict management and control requirements, combined with high costs, have limited large-scale adoption.

2. Solar-Storage-Charging Integrated Model

This model integrates energy storage with distributed solar photovoltaic (PV) systems to create a customer-side solar-storage system.

• Solar-Storage Integration: During peak solar generation, excess electricity is stored, stabilizing PV output fluctuations. The stored energy can be discharged during peak electricity price periods at night, reducing energy costs and boosting profits. Revenue primarily comes from the price difference between peak electricity consumption rates and surplus energy fed back into the grid.
• Storage-Charging Integration: Pairing energy storage with EV charging stations allows energy buffering between the grid and charging infrastructure. This system leverages the difference between peak and off-peak electricity rates as its primary revenue source.

3. Microgrid Operation Model

Energy storage systems play a critical role in microgrids, enhancing power reliability, stabilizing energy quality, and supporting high proportions of distributed renewable energy. They enable microgrids to operate independently from the main grid when necessary.

Unlike user-side storage systems motivated primarily by economic benefits, energy storage in microgrids is often driven by technological innovation. However, in incremental distribution networks, energy storage installations are increasingly economically motivated. For example, operators use storage systems to:

• Earn profits from peak and off-peak electricity rate differences.
• Reduce the volume of electricity sent back to the grid.

Unlocking Potential in User-Side Energy Storage

User-side energy storage systems provide diverse profit opportunities through advanced energy management, integration with renewable systems, and support for modern grid operations. By adopting the appropriate model based on specific use cases, users can achieve economic and environmental benefits while contributing to energy sustainability.