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

Abstract

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.