01 What is Commercial and Industrial Energy Storage?
Commercial and industrial energy storage is a typical application of energy storage systems on the user side, primarily targeting industrial and commercial users such as factories, shopping malls, data centers, and industrial parks. Its core function is to utilize energy storage devices (such as lithium batteries) to store electrical energy during off-peak hours and release it during peak hours, thereby achieving peak shaving and valley filling, and reducing electricity costs. In addition, commercial and industrial energy storage can also serve as a backup power source, ensuring power supply during sudden power outages. Its core value is reflected in three aspects:
Peak-Valley Arbitrage: Cleverly utilizing the difference between peak and off-peak electricity prices for arbitrage, for example, charging and storing energy during off-peak hours (electricity price as low as 0.3 yuan/kWh) and discharging during peak hours (electricity price as high as 1.2 yuan/kWh), a single project can save millions of yuan in electricity costs annually. This strategy not only effectively reduces electricity costs but also significantly improves energy efficiency, providing strong support for the sustainable development of enterprises.
Backup Power: As a reliable backup power source, it plays a crucial role in responding to sudden power outages, effectively avoiding losses due to production line shutdowns caused by power outages. For high-precision, highly sensitive industries such as chip manufacturing, a one-hour power outage can result in economic losses of up to millions of dollars. Backup power solutions ensure the continuity of production processes, guarantee stable operation, and reduce the potential risks caused by sudden power outages.
Deep Integration: Deep integration with photovoltaic power generation systems and charging piles can significantly improve the utilization efficiency of clean energy. Photovoltaic power generation produces clean electricity during the day, which can not only meet its own electricity needs but also provide energy support for charging piles, achieving energy self-sufficiency and efficient utilization.
02 Modular Design of the “Energy Brain”
Commercial and industrial energy storage systems typically include batteries, a battery management system (BMS), a power converter (PCS), an energy management system (EMS), and other electrified components. Based on system architecture, they can be divided into AC-coupled and DC-coupled systems. AC-coupled systems offer high flexibility and are suitable for users with existing photovoltaic systems; DC-coupled systems are low-cost and suitable for users with low daytime loads and high nighttime loads.
Battery System (BMS)
Equivalent to the “heart,” it uses lithium iron phosphate batteries with a cycle life of 8,000 cycles (equivalent to 20 years of use with one charge-discharge cycle per day).
By monitoring parameters such as voltage and temperature in real time, overcharging and over-discharging are prevented, extending battery life.
Converter (PCS)
Acting as the “blood vessels,” it achieves AC/DC conversion with a conversion efficiency of 99% (only 0.01 kWh is lost per kWh).
Supports millisecond-level grid switching, ensuring uninterrupted power supply for critical equipment.
Energy Management System (EMS)
Equivalent to the “brain,” it intelligently analyzes electricity pricing policies and load curves, dynamically optimizing charging and discharging strategies (such as Zhejiang’s “two-charge, two-discharge” system).
Connects to the enterprise’s power distribution system, enabling coordinated scheduling of photovoltaic, energy storage, and grid energy sources.
Safety System
Liquid-cooled temperature control technology (temperature difference ±2℃) extends battery life by 20%.
Perfluorohexanone 1-second fire extinguishing device, 3 times faster than traditional fire suppression.
03 Application Scenarios and Revenue Models
Commercial and industrial energy storage has diverse application scenarios, mainly including the following:
- Individual Storage for Industrial and Commercial Enterprises
Typical scenarios: Industrial parks, commercial centers, data centers, hospitals, schools, and other locations with stable electricity demand. For example, manufacturing plants rely on energy storage during peak electricity consumption periods (e.g., 10 AM to 4 PM).
Revenue Model: Reduce electricity costs through peak-valley arbitrage and ensure power supply stability as a backup power source.
- Integrated Photovoltaic-Storage-Charging System
Typical Scenario: Photovoltaic industrial parks, distributed photovoltaic power generation projects.
Revenue Model: Combining photovoltaics and energy storage allows for both solar power generation and smooth power output through the energy storage system, alleviating pressure on the grid during peak hours.
- Microgrid Applications
Typical Scenario: Microgrids in remote islands and industrial parks.
Revenue Model: Achieve energy self-sufficiency in an independent grid, reducing dependence on the main grid. For example, islands use energy storage systems to replace diesel generators, balancing power supply and demand.
- Dynamic Capacity Expansion and Demand Management
Typical Scenario: Industrial and commercial enterprises needing to expand transformer capacity.
Revenue Model: Using energy storage systems to discharge when transformers are overloaded avoids costly static capacity expansion, while simultaneously utilizing peak-valley price arbitrage.
04 Cooperation Model: Who Invests? Who Shares the Profits?
I. Based on the company’s financial strength and risk appetite, four cooperation models are available:
II. The Entire Development Process of Industrial and Commercial Energy Storage
The development of industrial and commercial energy storage projects involves multiple stages, including demand analysis, system design, equipment procurement, installation and commissioning, and operation and maintenance.
- Demand Analysis: Assess the potential revenue of the energy storage system based on the user’s electricity load, electricity price structure, and photovoltaic configuration.
- System Design: Based on the demand analysis results, design the capacity, architecture, and control strategy of the energy storage system.
- Equipment Procurement: Select suitable batteries, converters, energy management systems, and other equipment.
- Installation and Commissioning: Install and commission the equipment at the user’s site to ensure normal system operation.
- Operation and Maintenance: The energy storage system requires regular maintenance to ensure its performance and safety.
05 Risk Management: How to Avoid Potential Risks?
Although the industrial and commercial energy storage market has broad prospects, there are also some potential risks that need to be mitigated through effective risk management measures.
- Technical Risks
Battery Degradation: Select lithium iron phosphate batteries with a cycle life of ≥6000 cycles and conduct regular SOA (Self-Occupancy Assurance) checks.
Safety Accidents: Prioritize systems certified by UL9540 and configure level 3 fire protection.
- Policy Risks
Subsidy Reduction: Select regions with stable policies such as Zhejiang, Guangdong, Jiangsu, and Shanghai (subsidies up to 300 RMB/kWh).
Electricity Price Fluctuations: Sign long-term peak-valley electricity price contracts to lock in profits. Monitor national and local policy developments and adjust project strategies accordingly.
- Economic Risks
Payback Period: Prefer regions with peak-valley price differences >0.7 RMB/kWh (payback period in Zhejiang/Guangdong/Jiangsu is approximately 2-3 years).
Cost Control: Accurately match installed capacity based on the company’s electricity consumption (avoid over-investment).
