Small Battery Systems Give The Best ROI For Peak-Demand Reduction

The National Renewable Energy Laboratory (NREL) from the US Department of Energy (DOE) recently announced that small battery systems for energy storage to manage peak demand, barring incentives, could be the most attractive option for investors.

Using a Behind-the-Meter version of the Battery Lifetime Analysis and Simulation Tool (BLAST), the NREL worked out different energy storage system configurations that would provide the most favourable return on investment (ROI) in the shortest period of time looking at peak load reduction and electricity cost savings. In total, 6860 unique scenarios were generated based on utility rate structures and historic data on solar PV electricity generation.

In the absence of state or utility incentives that make longer duration, lower power-to-energy ratio systems more economically feasible, short-duration battery systems (discharge durations of 30min-one hour) are most cost-effective for demand-charge reduction under present utility rate structures. It is estimated that demand charges can account for over 50% of a commercial customer’s utility bill every month.

BLAST could be used to identify improvements in a variety of applications, such as in electric vehicles (BLAST-V) and stationary energy storage (BLAST-S) as well as to aid assessment of long-term performance of batteries.

This analysis delivers renewed promise that energy storage for demand-charge management can be economically attractive.

If you want to know more about this and other topics directly from end users of energy storage technologies join us at one of these annual events: The Energy Storage World Forum (Grid Scale Applications), or The Residential Energy Storage Forum, or one of our Training Courses.


Annual Installed Capacity Significantly Increases

While the global market was under the haze of the epidemic and many countries were still in lockdown, the energy storage market showed extremely strong resilience and began to recover and grow since Q3 and Q4 of 2020. According to the BloombergNEF report, the global energy storage market in 2020 has developed faster than expected,…

Read More

Energy Storage Systems: the role of an Integrator

Simplifying BESS deployments by mastering their associated risks With the introduction of Battery Energy Storage Systems ‘BESS’, a new role has been created on the value chain. It is the role of a BESS integrator. The role of an integrator can be misunderstood at times or blended with other roles at other times. This is…

Read More


“Probably the most interactive and well organized storage event on the calendar.”


Sales Director, S&C

“Great topics, competent speakers, good networking: keep it like that.”



“High scientific content, well targeted, perfect organization.”


Expert Technical & Governance, Elia

Excellent networking event. The sponsorship was well worth it.”


Manager, ATL

View More