Battery storage is not a new technology, however “Behind-the-Meter” (BTM) use of battery storage is and involves using the battery storage technology to eliminate the Global Adjustment (GA).
Many utilities across North America use battery storage as backup for their substations. Recently, Metrolinx announced that they are installing battery storage for the new Eglinton LRT in lieu of natural gas since battery storage is more reliable and has lower emissions.
In Ontario, electricity prices consist of the commodity and the Global Adjustment. The GA represents 70% of the total electricity bill.
Battery storage can eliminate the entire GA with a 2-3 hour battery storage solution to cover 100% of your peak load. With a revenue sharing model, where there is no capital outlay to the customer, the savings are guaranteed and totally risk-free.
Average net savings are $200,000 per MW per year of your entire annual electricity bill using proven technology that is CO2-free without bearing the responsibility of managing the operations of the system.
Class A electricity customers are charged the GA based on how much energy they are using during the top 5 peak demand hours of the entire province in a year.
Additional savings are in Demand Response, which is about $80,000 per year per MW and Electricity Arbitrage, which is charging the battery when it’s cheaper and using when more expensive, an additional $40,000 per year per MW.
Some Class A customers know they are Class A, most specifically some of the largest energy users in Ontario. Recently, the threshold for what qualifies as a Class A customer was lowered and there are now over 200,000 more Class A and Class B customers who do not understand completely what this means and how it will affect them.
As of 2017, a Class A customer is now any customer using more than 1 MW peak (.5 MW for manufacturing) down from 5 MW peak (3 MW manufacturing). 1 MW = 1000 kilowatts. So, if you hit 1000 kilowatts as little as one hour once a month, then you qualify as Class A (for manufacturers that is .5 MW so 500 kilowatts)
Specifically, if a customer draws 1 MW as little as one hour a month from a May to April fiscal year, they are Class A and pay the GA the following year based on how much peak they were using during the 5 most in demand hours of the entire system in the entire province.
Customers under 5 MW (3 MW in manufacturing) must opt in to Class A and can continue to stay on the old method of being billed the GA. However, there will be a lot more Class A customers and as such, their conservation efforts will spread the cost of the Global Adjustment to customers who do not partake in conservation efforts.
Doing nothing will certainly see your business absorb the costs of other businesses that do partake in those efforts.
All of the engineering, development, commissioning, operations,maintenance and reporting are managed for the customer and are guaranteed. The battery is a fully isolated system connected in parallel to the feed from the grid, behind the meter at the site.
The customer is connected to the grid 100% of the time and the battery also includes surge protection.
The battery is not turned on and off in a switching process between the battery and the grid, rather, when it’s turned on, your site will take the closest source of electrons available.
For example, if your consumption for a specific hour is 1 MW and the battery is sized at 800 kW, when the battery is turned on, you will receive 800 kW from the battery and 200 kW from the grid. If the battery was off, you would receive 1 MW from the grid.
Because of how the system is installed and the types of breakers used,there is absolutely no risk to power failure or interruption. It’s also an excellent backup system and is fully certified and approved by your local utility as well as the ESA
Class A electricity customers, such as major retail chains, real estate developers, agricultural enterprises, health care institutions (hospitals), universities, municipalities and manufacturing companies are moving to this solution, as opposed to the traditional methods, such as load shedding, shift changes or shut downs which can almost guarantee to achieve up to a 99% reduction in the Global Adjustment and are less precise than a Behind-the-Meter storage solution.
Any customer who uses a peak of 1 MW (0.5 MW for manufacturers) is eligible to benefit from a battery storage solution. Additionally, non-manufacturing customers with a peak of between 0.5 MW and .999 MW can be converted to a Class A customer.
Simply, we can charge the battery up one hour a month for a qualification year and make you Class A.