Business opportunities for grid-integrated energy storage systems in Malaysia based on a real case study

Abstract

Abstract The electricity generation and maximum demands in many countries are increasing rapidly in the past few decades in tandem with economic growth. A grid-integrated energy storage system (ESS) provides an attractive solution to mitigate the maximum demands. However, many entrepreneurs are not optimistic about the potential business opportunities for grid-integrated energy storage systems especially in developing countries like Malaysia because the technical, financial and environmental benefits of ESS technologies are not evident currently. Therefore, a 400 kW and 667 kWh energy storage system was designed, set up and commissioned at a university building in Malaysia in order to demonstrate the multiple benefits of grid-integrated ESS. The system has proven to generate an annual saving of about USD 3,803.6 in electricity bills. At the same time, the utility company has also achieved the annual savings of USD 21,207.75 and 15.86 tons of CO2 avoidance since the ESS reduces generation cost and helps cut significant cost through deferment of network reinforcements. With a storage cost of only USD 151,000, the customer and utility company can recover the cost within 6 years over the storage lifespan of 11 years. Hence, the grid-integrated ESS presents a good business opportunity for even small and medium-sized enterprises (SMEs) to enter the electricity industry by offering unique energy savings solutions to the customers and utility company which is particularly attractive in countries where there are only a few major electricity providers such as Malaysia to generate more savings to both the customers and utility companies.