Spotlight on energy storage in the Baltimore Washington metro area

March 21, 2016

Commercial building electricity bills are high and those responsible for their design and operation need strategies and technologies to help reduce energy costs. That's why thousands of industry professionals are convening in the Baltimore Washington metro area for NFMT Baltimore and the Building Energy Summit this month to learn how to make their buildings more energy efficient. But energy efficiency isn't the only road to cost savings. Energy demand and when energy is used also plays an important role.

The reason why your electric bill is through the roof
Throughout the year the price of electricity for commercial buildings peaks during the day and drops at night. Unlike residential customers, commercial energy users must pay for both energy usage (kWh) and demand charges (kW). Demand charges are based on the highest 15-minute or 30-minute demand peak each month. So on hot summer days, demand peaks set by air-conditioning use can send your electric bills skyrocketing, according to CALMAC's vice president of sales and marketing Paul Valenta. Baltimore Gas and Electric lists demand charges for the general service rate at close to $7 and peak hours as 10 a.m. to 8 p.m. during the summer. During the daytime period, energy charges (kWh) are 25% higher than during the nighttime off-peak hours. This is why Maryland's average monthly utility bill is more than double the national average.

So, how do you get around these charges? The way to lower costs is by negotiating better rates, reducing energy usage through less use or increased efficiency and by avoiding energy use during peak demand hours when electricity is most expensive. First install energy efficient equipment (lighting, chillers, appliances, etc) which can improve your overall energy efficiency. Then limit equipment usage during the day which tackles both demand charges and avoids peak hours. Cooling is the biggest contributor to peak demand and so it would essential to limit its use.

However, you can't simply turn off the air conditioning during the day - the heat during the summer in Maryland is brutal. You don't want to send employees home on a hot day, the cost of which would outweigh energy costs savings. The good news is that air-conditioning electrical loads are the easiest building loads to shift off peak.

The solution to high utility costs
In order to avoid daytime energy use and peak demand charges, load-shifting technology is needed.  An example of which is thermal energy storage. With thermal energy storage, facility managers can shift cooling loads to off-peak demand hours, which reduces peak demand while taking advantage of the much cheaper off-peak electricity costs available at night.

CALMAC's IceBank system stores cooling at night when electricity rates are low. This allows the building to utilize stored cooling during the day. Essentially, your building will be billed for the cheaper electric rates, yet provide the same level of comfort during the day as it normally does.

Thermal energy storage in the Baltimore Washington metropolitan area
Maryland and D.C. serves as the perfect area to shift cooling loads because of the combination of demand and energy charges leaving utility bills dramatically higher compared to the national average. Energy storage is currently employed at several buildings including the Smithsonian Institution's National Air & Space Museum and Marriott Corporate headquarters.

Those who wish to learn more about how to avoid doubling their monthly energy bill are in luck. Paul Valenta will be in Baltimore this week lecturing on how understanding your electric bill can lower operating costs at Building Operating Management's NMFT 2016. Building owners, facility managers and design professionals will gain a deeper understanding into reducing their utility bills, and are encouraged to bring their bills for a Q&A after the presentation.

Follow CALMAC on Facebook to find where we'll be next.