A close look at thermal versus battery energy storage for commercial applications

May 6, 2015

Energy storage technologies have unique nuances that make them better suited for performing a specific task or deployment in a particular vertical market with unique energy consumption needs. That's why facility managers considering energy storage as a solution to help curb commercial energy costs need to be educated about the types of energy storage technologies available. Being able to differentiate between the perks of battery and thermal energy storage, two of the most common solutions available, is especially vital for facility managers considering a deployment in the near future. Choosing the right technology will ensure the installation helps a commercial facility to consume electricity in as cost-effective a manner as possible.

Batteries show promise for renewables and vehicles
Bloomberg pointed out that the biggest demands for battery energy storage revolved around its use to offset the limitations of renewable generation. Energy generated by wind and solar is intermittent. Inconsistent breezes and sunlight obscured by cloudy days limit the usefulness of renewable generation throughout the year, and energy storage via batteries is becoming an increasingly popular solution to this problem.

Battery technology is also becoming increasingly accessible thanks to an innovation push from the automobile industry. Electric vehicles are closer than ever to matching the performance and cost of traditional fossil fuel vehicles, and these developments are pushing battery production to new heights. According to The Energy Collective, the same factories being used to develop EV batteries for vehicles are also ramping up production of storage solutions that are intended for applications beyond electric cars. It's no surprise that the success of battery storage in one highly lucrative, visible sector has led manufacturers to consider where the technology could be lucrative elsewhere. Not all energy storage scenarios, however, call for a battery installation.

Thermal energy storage delivers when it comes to facility management
Though batteries are certainly receiving plenty of attention for their benefits, there are many proven energy storage technologies that are better suited for tasks such as managing a commercial facility's energy costs. Storage mediums like ice, for example, are extremely effective for storing and releasing large amounts of energy with minimal waste, making ice an ideal solution for helping companies take advantage of off-peak electricity. Typically this strategy is achieved by supplementing a chiller-based cooling system with thermal energy storage tanks that form and store ice, according to Buildings.com. Furthermore, companies would have to make a far larger investment to match the storage and discharge capacity of a thermal energy storage installation with batteries, and this cost difference is typically what pushes facility managers toward thermal.

There are a few other reasons why thermal energy storage is the right choice over batteries for commercial buildings. First and foremost is long-term ROI. While batteries may last for up to 15 years, businesses can get at least three decades' worth of reliable performance from thermal installations like IceBank® energy storage tanks from CALMAC. Choosing thermal storage over batteries for commercial application also saves businesses the hassle of finding a way to safely dispose of lithium-ion waste materials once the service life of a battery comes to an end.

Perks of energy storage
Being able to differentiate between the perks of battery and thermal energy storage, two of the most common solutions available, is especially vital for facility managers considering a deployment in the near future. Choosing the right technology will ensure the installation helps a commercial facility to consume electricity in as cost-effective a manner as possible. Batteries are great for providing backup power for lighting, elevators and computers whereas thermal energy storage is the building's low-hanging fruit for reducing peak electric demand. Air conditioning makes up a third of energy costs in summer months and it would be highly inefficient and costly to store energy in a battery only to have it transformed yet again to create instantaneous cooling.  In contrast, you cannot backup the entire building load with just thermal storage. All forms of energy storage are needed for a low-carbon future.