This post was published on LinkedIn as part two of our We love batteries-series
Let’s continue our series on the advantages of battery powered EV charging by talking how to save costs while expanding EV charging infrastructure.
Reduced electricity costs are a primary advantage for EV charging operators utilizing battery storage for peak shaving. During off-peak hours, when electricity rates are lower, the batteries are charged and store energy. This stored energy is then used during peak hours when electricity demand and rates are higher. By leveraging this stored energy instead of drawing from the grid during expensive peak times, operators can significantly lower their overall energy expenses. This strategic use of battery storage not only helps in managing operational budgets more effectively but also shields operators from the volatility of peak-time electricity pricing, leading to predictable and manageable energy costs.
Demand charge reduction is another substantial financial benefit for EV charging operators using battery storage. Utilities often impose demand charges based on the highest level of power consumed during any short interval within the billing period, which can constitute a large portion of a commercial electricity bill. By deploying stored energy to meet high power demands during these peak periods, operators can reduce the peak load drawn from the grid. This reduction in peak power usage translates to lower demand charges, resulting in significant savings on utility bills. Consequently, the ability to smooth out demand peaks through battery storage not only decreases immediate energy costs but also enhances long-term financial stability by minimizing exposure to high demand charges.
Let’s summarize:
Save Costs on Electricity
– Utilizes stored energy during peak hours when electricity rates are higher.
– Minimizes reliance on expensive peak-time grid power.
Demand Charge Reduction
– Lowers peak power usage, reducing demand charges from utilities.
– Mitigates significant cost components of commercial electricity bills.
Energy Cost Predictability
– Shields operators from the volatility of peak-time electricity pricing.
– Leads to more predictable and manageable energy expenses.
Long-term Financial Stability
– Enhances financial stability by minimizing exposure to high demand charges.
– Supports more efficient budget management and operational planning.
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If you want more interesting reading on EV and HDEV charging, check out our other posts.
