Abstract
Under the current energy sector framework of electricity tariff in Malaysia, commercial and industrial customers are required to pay the maximum demand (MD) charge apart from the net consumption charges every month. The maximum demand charge will contribute up to 20% of the electricity bill, and will hence result in commercial and industrial customers focussing on alternative energy supply to minimize the billing cost. This paper aims to review the technical assessment methods of a grid-connected solar photovoltaic (PV)—battery storage system—with respect to maximum demand shaving. An effective battery storage system can provide the extra energy needed during the peak energy consumption periods, as well as when renewable energy (RE) sources go offline. Based on the reviews, maximum demand shaving with good Return-of-Investment (ROI) can be achieved by considering the actual load profile, technical, and economic aspects of the solar PV-battery system and the Malaysian electricity tariff for commercial and industrial customers.
Highlights
The rapid depleting conventional energy sources and today’s continuously increasing energy demand have led to the intensive research for new, more efficient, and green power plants, with advanced technology
The PV system functions to fulfill the energy demand, while the energy surplus will be sold to the grid via the net metering system
The local consumption of PV produced energy could be boosted by battery capacity at times of peak demand when and it is not enough or does not exist
Summary
The rapid depleting conventional energy sources and today’s continuously increasing energy demand have led to the intensive research for new, more efficient, and green power plants, with advanced technology. The demand charge is billed at a fixed rate, which is calculated on a per kW basis This charge is applied to commercial and industrial customers and other large energy users for sharing the infrastructure and maintenance costs that are incurred by the electricity provider to provide the peak power when needed [23]. Low incentives will lower the profit under the current TOU pricing scheme of Malaysian electricity tariff [25] This has led to studies on optimization of solar PV with battery energy storage system in order to maximize the benefits that are related to the electricity price variances under time-of-use of real-time pricing
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