Energy storage as a service (ESaaS) allows a facility to benefit from the advantages of an energy storage system by entering into a service agreement without purchasing the system. Energy storage systems provide a range of services to generate revenue, create savings, and improve electricity resiliency. The operation of the ESaaS system is a unique combination of an advanced battery storage system, an energy management system, and a service contract which can deliver value to a business by providing reliable power more economically.
History
Scott Foster, Energy Director of the United Nations Economic Commission for Europe, is one of the leading global advocates for energy as service. He coined the term 'iEnergy' to propagate a annual/monthly subscription fee for energy, rather than the present-day commodity-led pay per kilowatt of electricity system. Foster believes a service-led system would put the onus on the energy supplier to improve reliability and offer the best possible service to customers.
The term ESaaS was developed and trademarked by Constant Power Inc., a Toronto-based company, in 2016. The service has been designed to work in the North American open electricity markets. Notable other companies offering Energy Storage-as-a-Service include GI Energy , AES Corporation, TROES Corp., Stem Inc, and Younicos.
Components
ESaaS is the combination of an energy storage system, a control and monitoring system, and a service contract.
The most common energy storage systems used for ESaaS are lithium-ion or flow batteries due to their compact size, non-invasive installation, high efficiencies, and fast reaction times but other storage mediums may be used such as compressed air, flywheels, or pumped hydro. The batteries are sized based on the facility's needs and is paired with a power inverter to convert the DC power to AC power in order to connect directly to the facility’s electricity supply.
ESaaS systems are remotely monitored and controlled by the ESaaS operator using a Supervisory Control and Data Acquisition (SCADA) system. The SCADA communicates with the facility's Energy Management System (EMS), Power Conversion System (PCS), and Battery Management System (BMS). The ESaaS operator is responsible for ensuring the ESaaS system is monitoring and responding to the facility’s needs as well as overriding commands to participate in regional incentive programs such as coincident peak management and demand response programs in real time.
The facility benefiting from the ESaaS system is linked to the ESaaS system operator through a service contract. The contract specifies the length of the service term, payment structure, and list of services the facility wishes to participate in.