Energy storage as a service (ESaaS) allows a facility to benefit from the advantages of anenergy storage system by entering into a service agreement without purchasing the system. Energy storage systems provide a range of services to generaterevenue, createsavings, and improveelectricity resiliency. The operation of the ESaaS system is a unique combination of an advanced battery storage system, anenergy management system, and a service contract which can deliver value to a business by providing reliable power more economically.
Scott Foster, Energy Director of theUnited Nations Economic Commission for Europe, is one of the leading global advocates for energy as service. He coined the term 'iEnergy' to propagate an annual/monthly subscription fee for energy, rather than the present-day commodity-ledpayperkilowatt of electricity system.[1] Foster believes a service-led system would put the onus on the energy supplier to improve reliability and offer the best possible service to customers.[2]
The term ESaaS was developed and trademarked by Constant Power Inc., aToronto-based company, in 2016.[3] The service has been designed to work in theNorth American open electricity markets. Notable other companies offering Energy Storage-as-a-Service[4] includeGI EnergyArchived 2017-10-20 at theWayback Machine,[5]AES Corporation,[6]TROES Corp.,[7] Stem Inc,[8] andYounicos.[9]
ESaaS is the combination of anenergy storage system, acontrol and monitoring system, and aservice contract.
The most common energy storage systems used for ESaaS arelithium-ion[10] orflow[11]batteries due to their compact size, non-invasive installation, high efficiencies, and fast reaction times but other storage mediums may be used such ascompressed air,[12]flywheels,[13] orpumped hydro.[14][15] Thebatteries are sized based on the facility's needs and is paired with apower inverter to convert the DC power to AC power in order to connect directly to the facility’s electricity supply.
ESaaS systems areremotely monitored and controlled by the ESaaS operator using aSupervisory Control and Data Acquisition (SCADA) system.[16] TheSCADA communicates with the facility'sEnergy Management System (EMS),[17]Power Conversion System (PCS),[18] andBattery Management System (BMS).[19] The ESaaS operator is responsible for ensuring the ESaaS system is monitoring and responding to the facility’s needs as well as overriding commands to participate in regional incentive programs such ascoincident peak management anddemand response programs in real time.
The facility benefiting from the ESaaS system is linked to the ESaaS system operator through aservice contract. The contract specifies the length of the service term, payment structure, and list of services the facility wishes to participate in.
ESaaS is used to perform a variety of services including:
ESaaS primarily benefits large energy consumers with an average demand of over 500 kW,[29] although, the service may benefit smaller facilities depending on regional incentives.[30] Current early adopters of ESaaS aremanufacturers (chemical,electrical,lighting,metal,petrochemical,plastics),commercial (retail, large offices, medium offices, multi-residential,supermarkets), public facilities (colleges,universities,hotels,hospitality,schools), and resources (oil & extraction,pulp & paper,metals &ore,food processing,greenhouses).
To participate in an ESaaS service, the installation system benefactor does not require anycapital outlay.[31] Upon installing an ESaaS service, the facility sees immediate savings and/or revenue generation. Initial capital is often a hurdle for facilities to adopt an energy storage system since in most cases, thepayback period[32] of anenergy storage system is 5–10 years.[33]
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ESaaS is acontracted service[35] that is automatically controlled by a third party. This eliminates responsibility for the facility[36] to allocate resources to manage their energy profile allowing a facility to operate their core business. The system operators have knowledge of local electricity sectors that continuallymonitor and update[37] system protocols as regional markets change. The information is used to optimize the value realized by the ESaaS system while still meeting facility requirements.
For most ESaaS services, energy is stored during night time, off-peak hours when energy production is created fromnon-carbon emitting sources.[38] The energy is then used to offset the requiredcarbon emitting[39] production during peak-times. The load shifting capability provided by ESaaS displaces heavy emitting generation requirements.
ESaaS contracts may be structured as a cost sharing model or afixed monthly price over a contractedterm.[40] Cost sharing models share the economical benefits of ESaaS after they are realized by the customer. The fixed price is based on potential economic benefit and applicable programs in the region of deployment. The ESaaS contract price is always less than the economic value provided by the service to ensure the client retains a net positive value through the service.