Energy storage as a service


Energy storage as a service allows a facility to benefit from the advantages of an energy storage system by entering into a service agreement without purchasing the system. Energy storage systems provide a range of services to generate revenue, create savings, and improve electricity resiliency. The operation of the ESaaS system is a unique combination of an advanced battery storage system, an energy management system, and a service contract which can deliver value to a business by providing reliable power more economically.

History

The term ESaaS was developed and trademarked by Constant Power Inc., a Toronto-based company, in 2016. The service has been designed to work in the North American open electricity markets. Notable other companies offering Energy Storage-as-a-Service include , AES Corporation, STEM, and Younicos.

Components

ESaaS is the combination of an energy storage system, a control and monitoring system, and a service contract.
The most common energy storage systems used for ESaaS are lithium-ion or flow batteries due to their compact size, non-invasive installation, high efficiencies, and fast reaction times but other storage mediums may be used such as compressed air, flywheels, or pumped hydro. The batteries are sized based on the facility's needs and is paired with a power inverter to convert the DC power to AC power in order to connect directly to the facility’s electricity supply.
ESaaS systems are remotely monitored and controlled by the ESaaS operator using a Supervisory Control and Data Acquisition system. The SCADA communicates with the facility's Energy Management System, Power Conversion System, and Battery Management System. The ESaaS operator is responsible for ensuring the ESaaS system is monitoring and responding to the facility’s needs as well as overriding commands to participate in regional incentive programs such as coincident peak management and demand response programs in real time.
The facility benefiting from the ESaaS system is linked to the ESaaS system operator through a service contract. The contract specifies the length of the service term, payment structure, and list of services the facility wishes to participate in.

Services

ESaaS is used to perform a variety of services including:
ESaaS primarily benefits large energy consumers with an average demand of over 500 kW, although, the service may benefit smaller facilities depending on regional incentives. Current early adopters of ESaaS are manufacturers, commercial, public facilities, and resources.

Benefits

System benefactor does not require installation capital

To participate in an ESaaS service, the installation system benefactor does not require any capital outlay. Upon installing an ESaaS service, the facility sees immediate savings and/or revenue generation. Initial capital is often a hurdle for facilities to adopt an energy storage system since in most cases, the payback period of an energy storage system is 5–10 years.

System operated by a third-party system operator

ESaaS is a contracted service that is automatically controlled by a third party. This eliminates responsibility for the facility to allocate resources to manage their energy profile allowing a facility to operate their core business. The system operators have knowledge of local electricity sectors that continually monitor and update system protocols as regional markets change. The information is used to optimize the value realized by the ESaaS system while still meeting facility requirements.

Environmental

For most ESaaS services, energy is stored during night time, off-peak hours when energy production is created from non-carbon emitting sources. The energy is then used to offset the required carbon emitting production during peak-times. The load shifting capability provided by ESaaS displaces heavy emitting generation requirements.

Pricing

ESaaS contracts may be structured as a cost sharing model or a fixed monthly price over a contracted term. Cost sharing models share the economical benefits of ESaaS after they are realized by the customer. The fixed price is based on potential economic benefit and applicable programs in the region of deployment. The ESaaS contract price is always less than the economic value provided by the service to ensure the client retains a net positive value through the service.