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Energy Storage Systems and Utility Cost Savings For DoD Installations

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Technical Report

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Naval Postgraduate School Monterey United States

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The benefits of energy storage systems ESSs include reduced utility costs, back-up power, and the integration of renewable energy. This research developed energy storage heuristics that determine how much energy should be sent to and from storage in a given time period. The researchers evaluated the economic impact of each heuristic given various energy demand profiles and utility rate structures. The researchers utilized several ESS configurations, two different rate structures, and two historic annual energy demand profiles to test each heuristic and estimate potential cost savings of energy storage. ESSs reduced overall energy costs in both volatile and stable demand environments. Annual cost savings achieved by employing an ESS was a function of the energy storage heuristic and characteristics of the ESS. The research offers several key takeaways. First, utility rate structures can be used to determine the required efficiency rate to generate cost savings, and maximum capacity of the ESS can be a limitation. Second, capacity limitations can be mitigated with the application of a safety stock. Finally, volatile demand profiles with large demand spikes require a maximum discharge power equal to that spike to maximize savings, where as stable demand profiles are not constrained by this characteristic.

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  • Energy Storage

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