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July 10th, 2024
3 min read
Here it comes again: another hefty bill from Eversource. For many, this is the most dreaded time of the month. These costs can vary significantly, leaving you uncertain about what to expect.
Now, imagine the electricity costs for a manufacturing facility. Machines, lights, air conditioning, conveyors, welders – all these factors contribute to the electric bill, ultimately increasing it.
In recent years, the manufacturing industry has demonstrated that incorporating alternative energy into a facility is a wise decision that every company should consider. However, the question remains: what specific types of alternative energy should be integrated?
One effective solution that we at ASG specialize in is components of Battery Energy Storage Systems (BESS). Building these systems for companies enhances our understanding of their capabilities and how they can positively impact a facility’s electric bills. Let’s explore what alternative energy is and why BESS is a game-changer for manufacturing facilities.
But first, let’s clear up exactly what we mean by alternative energy.
Alternative energy refers to renewable sources of energy that are not derived from fossil fuels. Unlike traditional energy sources, these are environmentally friendly. Renewable sources include solar, wind, and water, which can be converted into clean electricity. Manufacturing facilities that incorporate alternative energy benefit from these sustainable sources because they can produce clean power with minimal costs
A BESS (Battery Energy Storage System) stores energy from solar, wind, or the grid and when needed most, releases that energy into the facility. These can be installed anywhere on the facility’s premises. They charge up when energy production is highest (for solar power, picture a sunny day). When fully charged, they serve as a backup power source for the facility. In the event of a power outage, the facility can run off the stored energy.
Does everyone have these devices? The short answer is no – but they are becoming more popular and frequent in facilities.
For example: Let’s say you run operations at a manufacturing facility located in Florida. Florida is known to have hurricanes, and some are so bad that flooding occurs. During these severe storms, power outages can last from a few hours to several weeks. Frequent power disruptions affect production and increase electricity costs. This is where a BESS comes into play, providing a reliable backup power source and potentially lowering electricity bills.
By installing a BESS, your electricity costs could significantly decrease, and consistent production could improve your overall efficiency. BESS systems help stabilize production and demand curves, reducing the need for expensive new plant construction. The battery uses power from the grid to physically charge the battery. The battery charges when energy is least expensive and uses the battery when energy is most expensive – this is known as peak shaving.
A BESS looks like a big storage container. Inside the container, many factors contribute to its functionality. Your BESS must be built correctly and fully, so functionality is at full efficiency since the batteries are composed of lithium-ion, there is a potential for temperatures to grow, causing a fire.
Let’s look inside one of these devices and all the components of them. Every BESS can look different, but here’s one example. The core components, though, stay the same throughout.
Source: TROES Corp.
Every system will have some combination of these core components to ensure full efficiency is being met.
At ASG, we are deeply involved in the alternative energy market, manufacturing switches for BESSes. These switches convert power to be active or inactive, similar to a kill switch in large products. They ensure safe maintenance and control over the system’s power usage. We partner with Socomec to manufacture these switches, promising high efficiency and reliability.
As with any customized product, the price range of a BESS will be based on the size, how many you need to fully run your facility, and what products you choose to put in them, like a brand of battery or manufacturer of a switch. Each decision you make during this build will affect the cost.
But there is a range we can provide you with the container, which is where the BESS system is held. According to Energy Storage News, the average price of a 20ft BESS container is $148/kWh. A 20ft container can hold up to 500kWh, making the price of the container $74,000. These prices are projected to decrease by the end of 2024.
Lower electricity costs and improved production sound appealing, but is a BESS right for your facility? Consider the following:
Carefully evaluating these factors will help determine if a BESS is a beneficial investment for your facility. If you need guidance, ASG can help you make an informed decision that will save you money in the long run.
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