Applications: Battery Energy Storage Systems (BESS)

Commercial & Industrial C&I ESS Market Trends The C&I energy storage sector was estimated at $3B in 2023, with newly installed capacity reaching 2.4 GW / 4.9 GWh, or approximately 3% of the overall market by power capacity. C&I is rising due to falling BESS costs, supportive government policies, rising costs for demands, and a trend of industrial facilities building co-generation (and storage) on site together with new facilities (particularly among data centers). TOP 5TRENDS IN 2024 SHAPING FUTURE OF C&I ENERGY STORAGE 1.

Tighter standards for products: Due to influx of many player entering the niche market for the C&I space, certifications bodies are increasing their grips on code & compliance such UL 9540A(edition 4) and 9540 ( edition 3, UL 1741 and 1741 SB, UL 5500 for remote software updates to counter cyber security threats for PCS,BMS and EMS.

20-year equipment lifespan has been adopted as industry standard: As in the utility-scale space, products with higher lifespan provide higher edge on competition.

Storage-as-a-Service: Unlike utility-scale deployments, C&I requires greater customer engagement to explain its value proposition and demonstrated return on investment to the offtaker, as the BESS it typically located on the C&I customerʼs property. Rather than being funded directly by the offtaker, many C&I installations have instead signed offtake agreements guaranteeing utility tariff savings, making the prospect less capital-intensive and more attractive to potential customer.

Virtual power plants VPP) capabilities: As an added value stream, many C&I installations have used VPPs to add increase the ROI of C&I BESS installations. Depending on the market, C&I BESS installations are able to aggregate and optimize the BESS assets, allowing them to derive significantly greater revenue than if they were serving the local offtaker only. See the VPP Slide later in this deck for more detail.

Intelligent Operation and Maintenance IO&M. Effective C&I BESS must work closely with other energy components like existing SCADA controls, PV controls (if applicable), and in conjunction with the grid and its tariffs. Optimizing internal load versus external price curves to maximize profitability is key. Hence there is the need to automate operation and maintenance to realize full system operation.

Source:https://energybase.com

Extracted from the PDF; charts and images may read imperfectly.