Peak shaving and smart energy control

From cost to profit model

Energy prices are unpredictable, grid congestion is increasing and peak loads are making your energy bills unnecessarily high. Many businesses see their energy costs rise without knowing how to control it. The solution? Peak shaving and smart energy control. By strategically deploying batteries and smartly exploiting price fluctuations, you turn energy costs into a revenue model.

Current situation: Why smart control is crucial
Without smart control, you are at the mercy of the vagaries of the energy market. Suppose an entrepreneur has solar panels on the roof of his business. His energy supplier predicts that he will generate 10 kWh tomorrow between 2 and 3 p.m. and sells this energy a day in advance on the Day-Ahead market for €0.10 per kWh. This earns him €1.00.

But as often happens, things turn out differently. There is more sun than expected and the market price shoots below zero to -€1.00 per kWh. This means that there is a surplus of power and he has to pay to feed back his extra energy. Instead of the expected 10 kWh, he produces 15 kWh. That extra 5 kWh he has to pay at -€1.00 per kWh, representing a €5.00 loss.

The final balance without smart control:

• Proceeds from Day-Ahead market: +€1.00
• Cost due to imbalance: -€5.00
• Total loss: -€4.00

This is the risk of producing energy without control.

New situation: From loss to profit with smart control
With smart energy control, this loss is turned into profit. This is done through three strategic interventions:

• Curtailment: temporarily disabling the solar panels to avoid loss due to negative prices.
• Battery storage: Store excess energy in a battery and utilize it later at higher prices.
• Trading smart on the imbalance market: Feed energy back at times when the price is favorable.

The entrepreneur is now applying smart steering:

• He temporarily switches off his solar panels when the market price is negative (-€1.00 per kWh).
• As a result, he receives compensation of €10.00 for the energy he does not feed back.
• His battery recharges with cheap energy from the grid and receives another €10.00 fee for it.

The new financial balance sheet with smart control:Revenue Day-Ahead market: 10 kWh × €0.10 = €1.00

• Imbalance market revenue due to curtailment: 10 kWh × €1.00 = €10.00
• Imbalance market revenue from battery storage: 10 kWh × €1.00 = €10.00
• Total result: €21.00 profit instead of -€4.00 loss.

Smart control provides an additional €25.00 here.

The business case for peak shaving and energy storage
Battery storage is not only a solution to reduce peak loads, it is also a way to make money in the energy market. This works on three levels:

• Lower grid costs: Peak shaving avoids the need for a heavier and more expensive grid connection.
• Get a better grip on energy prices: By using battery storage smartly, you utilize energy at the times when it is most financially attractive.
• Additional revenue from flexibility services: By acting smartly in the imbalance market and partnering with aggregators, you make money on your energy capacity.

ZMission Energy Integrators: Make energy a profitable model
Waiting for grid operators and accepting rising energy costs is not a strategy. We take care of everything from A to Z:

• The right battery solution to reduce your peak consumption and save costs.
• Smart EMS adjustment so your battery charges and discharges at the right time.
• Contracts with aggregators to smartly trade your energy and generate additional revenue.

Stop paying for energy waste – find out how to turn energy into money. Contact us.