A closer look at energy storage behind the meter

March 19, 2015

A Q1 report from Navigant Research recognized 2014 as a year when the global energy storage industry "as a whole took significant steps forward." Government mandates and energy efficiency building upgrades across Europe, Asia Pacific and North America helped contribute to a surge of nearly 700 MW worth of new energy storage project announcements during 2014. One sector in the industry that has been a main driver of energy storage's growth in the past year is the adoption of behind-the-meter and distributed energy applications. Interest in green building, energy costs savings  and grid stewardship are key factors influencing behind-the-meter energy storage's appeal. Likewise, clients have been drawn to the unique financing models available to distributed energy storage customers.

Scalability makes energy storage ideal for behind-the-meter applications
While not for everyone, a wide spectrum of buildings, from school districts to large universities and business campuses, have taken advantage of behind-the-meter energy storage to reduce overall energy costs. Scalability is one of the main selling points of distributed and behind-the-meter applications of the technology. If you have a building expansion project, thermal energy storage technology might be a good fit. Many thermal storage solutions can even be installed in space-efficient locations like on top of buildings or in basements, a perfect solution for cost-conscious corporate offices.

Greentech Media predicted that energy storage applications will become even more effective when combined with smart energy management systems. The resource emphasized that the right combination of these technologies could help make a facility's energy use more consistent and predictable. Applications of intelligent energy management systems may also enhance distributed energy storage's effectiveness as an alternative to costly peak power plants.

Distributed solar provides a perfect path for storage
Thanks to the widespread popularity of photovoltaic solar cells, a teeming market for distributed, renewable energy generation already exists. PV-Tech noted that the development of this market creates a natural space for energy storage to bloom as a complementary technology. Intermittency issues inherent to renewable energy generation mean that continued growth in distributed and behind-the-meter storage creates new opportunities for energy storage applications in zero energy buildings. Likewise, the rise of the green building movement has clued more contractors, engineers and architects into the cost-saving advantages of incorporating solar and energy storage for behind-the-meter generation.

Energy storage already behind the meter already in California
Several behind-the-meter energy storage project are already underway in California as part of Southern California Edison's plans to create sources of sustainable generation. Looking to offset the loss of nuclear power plants, the utility is seeking to deploy over 2,000 MW of new generation and requiring its partners to begin installation by 2021. These installations will include over 80 MW of behind-the-meter energy storage, and the progress of this project will provide a natural case study for those interested in the technology's potential. As time and technology move forward, it seems that energy storage's future behind the meter seems bright.