Energy storage systems for commercial buildings in dense urban regions: NYC case study

In response to the mounting interest in Battery Energy Storage Systems (BESS) from a wide range of entities-commercial, private, and governmental-this paper analyzes the decision-making criteria for BESS implementation. The structure of electricity bills are analyzed to understand the current cost structure of building utility tariffs. In addition, the potential revenue streams provided by various incentive programs, including demand response contracts, when implementing BESS were investigated. Highlighting the need for a pragmatic and efficient ranking system, we propose a model that leverages load profile data to determine the suitability of BESS implementation within a portfolio of buildings. This approach offers property owners a streamlined method to prioritize which buildings to equip with BESS. To validate the efficacy of our load profile-based model, we compare it against established financial models, specifically employing the System Advisory Model (SAM) from the National Renewable Energy Lab (NREL). Our findings indicate that a load profile-centric ranking system can effectively determine the most appropriate buildings for ESS implementation. This paper provides a substantial contribution to the field of BESS sizing, offering a simplified yet robust methodology for ranking that aligns well with more complex financial models. By focusing on the practical utility of load profile data, we enable a simplified and informed process for property managers to make sound decisions in the deployment of energy storage systems.& COPY; 2023 The Author(s). Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Automated summary

In response to the growing interest in Battery Energy Storage Systems (BESS) from various entities, this paper analyzes the decision-making criteria for BESS implementation. It examines the structure of electricity bills to understand the cost structure of utility tariffs and investigates the potential revenue streams provided by incentive programs. The proposed load profile-based model offers property owners a streamlined way to prioritize buildings for BESS implementation. The findings indicate that this ranking system effectively determines the most suitable buildings for ESS implementation and provides a simplified methodology in line with complex financial models.