Given the global economy's current state, where energy prices are volatile and costs for businesses are increasingly higher, even the industrial and commercial sector are trying to get a hold on the soaring energy costs through operational cost optimisation. Energy storage, whether for commercial or industrial purposes, is trying to provide the robustness needed for businesses in regards to cost containment. Having sustained strategic development and industry evolution for energy storage over the last 16 years, The Origotek Co., Ltd.  has developed customised solutions through iterative energy storage product design in ways that have permitted a number of industrial and commercial clients to reduce their energy costs.  

The Core Logic of Commercial and Industrial Energy Storage in Cost Reduction  

The cost reduction opportunities for commercial and industrial energy storage are not incidental. Rather, they are predicated on three operational logics that speak directly to the pain points of enterprises with regard to energy use.

Initially, it engages in peak-valley arbitrage to minimize costs related to electricity purchases. A significant part of the regions operates tiered pricing for electricity, where costs soar during peak hours. Hence, commercial and industrial electricity storage systems can capture and store electricity during off-peak periods (late at night and early morning) and discharge the stored electricity at peak hours when energy demand is high to the enterprises. This diminishes the enterprises hypertrophy dependence of purchasing electricity to high rates from the electricity supply grid, and in return, it directly cuts down the enterprise electricity bills. This is clear in the case of medium-sized manufacturing enterprises; the installation of commercial and industrial energy storage systems of about 1MWh capacity can, in fact, translate to about tens thousands of yuan in annual electricity cost.

The next step involves optimal cost structure adjustments by lowering electricity capacity fees. For large-scale industrial and commercial customers, the electricity usage grid determines capacity charge fees according to the maximum power load requirements. For commercial and industrial solar energy storage system users, the storage system's quick release of power to reduce grid power intake primarily during critical peak load hours is their first line of peak shaving. This manipulation of power data to the grid is designed to lower the power threshold during billing periods. This action is instrumental in lowering threshold-based fees by 10-30% and reduces energy costs significantly during the billing cycle.  

The energy storage system monitors consumption parameters in real time, allowing avoidance of energy lapse. Unstable energy patterns are common in many industrial and commercial enterprises such as large shopping centers, factories, and data centers. Self-generated energy, like photovoltaic grid energy, is wasted when over-consumption of energy is drawn from the grid. For commercial and industrial energy, the system captures excess grid energy, reducing grid reliance by storing self-generated energy to be used later during peak hours. the inefficiencies in energy flow due to improper operations are addressed by energy lapse monitoring. This action compressed energy costs, enabled real time monitoring energy usage, and further reduction of overall energy costs.

Empowering Cost Reduction with 16 Years of Expertise

In 2009, The Origotek began focusing on the design and R&D of commercial and industrial energy storage products. For the past 16 years, this enterprise is built on, “providing customized overall energy solutions for industrial and commercial enterprises.” Logos has released its products through 4 Generations of advancements, each more effective with prioritization of safety and stability, while the most recent focusing on targeting and achieving cost reduction.

The Origotek 4th Gen commercial and industrial energy storage systems can serve various enterprise cost reduction functionalities including but not limited to, peak shaving, virtual power plants, back-up power supply, and three-phase unbalance management. For instance, in a virtual power plant, the enterprise’s commercial and industrial energy storage system is hooked up to the regional power dispatching platform. When the grid experiences high demand, the enterprise’s demand response is granted by adjusting the storage system’s discharge strategy and the enterprise is rewarded with grid subsidies. This eases the burden of costs and and contributes to profit generation.

The Origotek also offers customized solutions, which precisely help enterprises achieve cost reduction. Each industry, or even different enterprises within the same industry, has unique characteristics in energy consumption and different cost pressures. The Origotek team will deeply understand the enterprise by conducting on-site investigations as well as evaluating the enterprise’s energy consumption history and then designing commercially viable and tailored industrial energy storage systems complete with appropriate capacity, charge/discharge strategies, and operational modes. This 'bespoke' design ensures the energy storage system will achieve maximum costs reduction, thus avoiding the wastage of investment in energy storage alternatives that do not meet the enterprise’s specific needs and are commercially viable, standardized, and “one-size-fits-all" in design.

Outlook: Long-Term Cost Reduction with Commercial and Industrial Energy Storage

The value of commercial and industrial energy storage on cost saving will continue to grow with the expansion of the global energy transition and the new reliance on renewable energy (wind and solar) in the industrial and commercial sectors. On one hand, the volatility of renewable energy will increase the demand for energy storage to 'smooth' the energy output. Commercial and industrial energy storage enables enterprises to better integrate renewable energy, lowering reliance on conventional energy, and thus, achieving higher energy savings during the overall energy cost saving timeframe.

Policies in many countries favor the development of the energy storage industry, causing the price of commercial and industrial energy storage products to decline, and shortening the return of investment period for businesses. Origotek has said that it will keep developing innovative and safer commercial and industrial energy storage products which will enable industrial and commercial businesses worldwide to achieve sustainable cost savings and help realize the world’s energy freedom.  

As discussed, for industrial and commercial businesses trying to optimize their cost structure and enhance operational efficiencies, the commercial/industrial energy storage system is no longer an optional add-on but an indispensable key asset for sustainable growth. With their extensive experience and tailored approach in the field, businesses unlock the full potential of the system and enhance their position in the marketplace.