Introduction
Electricity consumption is on the rise these days, with peaks occurring during certain times of the year, particularly in summer and winter. Today, there is a particular need for infrastructure development and power supply to handle peak loads, and peak shaving is one of the solutions to these problems of increased energy demand and peak loads.
1. Increased Energy Demand and Peak Load Issues
■ Increased Energy Demand
There are three main factors that explain why electricity demand is increasing.
The first is economic growth. With global economic growth, there has been an increase in industrial, commercial, and residential electricity consumption. Particularly in developing countries, urbanization and industrialization are rapidly increasing energy demand.
The second is the rapid increase in demand for data centers and servers due to the spread of technologies such as digitalization and technological innovation (IoT) and artificial intelligence (AI), which in turn is increasing power consumption.
And the third is climate change countermeasures. In Japan, various efforts to expand the introduction of renewable energy have been underway since before COP28 in 2023, while new forms of energy consumption, such as electric vehicles and heat pumps used for air conditioning, are also increasing.
■ Peak Load Issues
In addition, peak demand is also an issue. Electricity demand surges at certain times of the year (e.g., summer afternoons and winter nights), and if power supply cannot keep up during these times, there is a risk of power outages and supply shortages. The power grid and power plant infrastructure must be strengthened to cope with such peak loads, but this comes at a significant cost. In addition, power plant operations can become unstable.
2. what is peak shaving? Definition of Peak Shaving
Peak shaving, by the way, refers to reducing peak electricity consumption during specific time periods. This improves the stability of the power supply and reduces the burden on the power grid. In addition, the supply of electricity must instantaneously meet demand, and since shortages of supply during peak hours increase the risk for each power company, peak shaving with storage batteries reduces risk by balancing supply and demand, thereby promoting the efficient use of energy.
3. The Role of Storage Batteries and Their Importance
Storage batteries play a role in coordinating supply and demand by storing electricity during periods of low demand and releasing it during periods of high demand to level out peaks, thereby improving the stability of the electricity supply. In addition to improving energy efficiency and promoting the use of renewable energy through this technology, storage batteries complement weather-dependent renewable energy sources, which tend to be unstable in terms of power generation, by storing surplus power and using it when needed, thereby promoting more efficient use.
Furthermore, the biggest advantage for consumers is that usage fees can be significantly reduced.
By reducing electricity consumption during peak hours, electricity rates can be leveled out, thus avoiding high electricity prices (maximum demand) that, once raised, do not fall thereafter, and reducing overall electricity costs. This improvement in cost efficiency is especially important for companies.
On the other hand, since more than 70% of Japan’s power supply composition is provided by thermal power generation, the use of storage batteries is also suitable for environmental considerations, as they promote the use of renewable energy sources, thereby reducing dependence on fossil fuels and contributing to CO2 emissions reduction.
4. stability of power supply in case of “what if” situations
Above all, storage batteries are capable of supplying power even in the event of a power outage, and are therefore seen as a powerful tool for ensuring the continuity of critical infrastructure and services. This is because storage batteries are expected to play an important role in times of disaster, especially in critical facilities such as hospitals and data centers, where the stability of power supply is enhanced, and in high-rise buildings, where human lives may be at stake depending on whether or not elevators are in operation.
Conclusion
Increasing energy demand and peak load problems are having a significant impact on the stability of the power supply.
In this context, storage batteries are expected to be realized as a sustainable energy system, as they promote the efficient use of energy and renewable energy, thereby contributing to cost reduction and environmental protection.
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