BTM energy storage systems, most commonly in the form of stationary electrochemical batteries, are connected behind the utility meter and typically located on the consumer's premises. Commercial, industrial, and residential consumers may consider deploying BTM storage to minimize electricity bills, secure a. Although the decision to install BTM storage is not centralized, decision makers can enable interconnection and potentially guide customer decisions in a way that can. Understanding the major drivers of BTM storage can help decision makers design programs that facilitate the adoption and operation of BTM storage to provide services.
What is Customer-Sited energy storage?
Furthermore, customer-sited storage is optimally located to provide perhaps the most important energy storage service of all: backup power.
How many services does energy storage provide to the electricity system?
Our results illustrate that energy storage is capable of providing a suite of thirteen general services to the electricity system (see Figure ES1). These services and the value they create generally flow to one of three stakeholder groups: customers, utilities, or independent system operators/regional transmission organizations (ISO/RTOs).
Energy storage can provide thirteen fundamental electricity services for three major stakeholder groups when deployed at a customer's premises (behind the meter).
Accordingly, regulators, utilities, and developers should look as far downstream in the electricity system as possible when examining the economics of energy storage and analyze how those economics change depending on where energy storage is deployed on the grid. 3.
Does energy storage create value?
Energy storage can generate much more value when multiple, stacked services are provided by the same device or fleet of devices... The prevailing behind-the-meter energy-storage business model creates value for customers and the grid, but leaves significant value on the table.
Does energy storage add value to the electricity grid?
Energy storage deployed at all levels on the electricity system can add value to the grid. However, customer-sited, behind-the-meter energy storage can technically provide the largest number of services to the electricity grid at large (see Figure ES2)—even if storage deployed behind the meter is not always the least-cost option.