Optimization of Electricity
and Capacity Charges
and Capacity Charges
In Russia, corporate consumers can choose from price categories 1 through 6. When using price categories above the third, charges are applied not only for the actual energy consumed but also for the actual power consumed. In these tariff models, a significant portion of costs is driven by the billable capacity, which is determined through a specific calculation mechanism.
An Energy Storage System (ESS) enables facilities to manage this parameter and reduce their capacity charges.
more details below
Specifics of Capacity Calculation for Consumers in Price Categories 3–6
For consumers in price categories 3 through 6, billable capacity is determined not merely by the individual facility's peak consumption. Instead, the calculation is based on the hour of maximum aggregate load of the regional power system.
Every month, the Administrator of the Trading System (JSC ATS) determines and publishes the hour during which the aggregate electricity consumption in the price zone reached its peak. The arithmetic mean of the power consumed by the facility specifically during these hours over the course of the month is established as the billable capacity for the billing period.
- even a brief load peak during this specific hour can significantly increase capacity charges
- the facility cannot know the exact time of this hour in advance, but it can be forecasted using power system operational data and historical statistics
Reducing Operational Risks and Costs
An Energy Storage System (ESS) enables facilities to strategically reduce their power draw during anticipated system peak hours.
The operating principle is as follows:
- Based on an analysis of historical data, weather factors, and grid behavior, a period with a high probability of the maximum aggregate load hour is forecasted. During this period, the Energy Storage System (ESS) is placed in standby mode.
- At the forecasted peak, the ESS begins discharging, partially or fully covering the facility's power demand. As a result, the power drawn by the facility from the grid is reduced.
Since this is the exact value recorded by the metering system, the facility can reduce its billable capacity, thereby directly lowering the corresponding component of its electricity cost structure.
Intelligent Control of Operating Modes
Modern Energy Storage Systems (ESS) can be equipped with an Automated Control System (ACS) that implements predictive and control software algorithms to:
- analyze grid data and historical load profiles
- forecast the peak load hour
- automatically manage the charging and discharging modes of the storage system
This enables the implementation of a power reduction strategy without operator intervention and without disrupting the facility's core production processes.
Economic Benefits
For large consumers, capacity charges can account for a significant share of their total electricity costs. Even a slight reduction in the recorded peak demand can result in substantial financial savings. Due to the specific architecture of the ESS, there is no need to fully offset the facility's total capacity, allowing for a phased implementation of the system.
Utilizing an Energy Storage System (ESS) provides the facility with a tool for the active management of this cost component, enabling the optimization of energy costs without curtailing production operations.
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