Solar panels and a battery: 3 ways to create value
A consumer with solar panels can create value in three different ways by adding a battery controlled by Nexen GridTech to their installation.
1. Optimise the site’s consumption
The battery stores part of the solar output when it exceeds the site’s consumption, then releases it later, when the site needs it.
It can also shift part of the site’s grid purchases if the site has a supply contract with dynamic pricing: charging when electricity is cheaper and discharging when it is more expensive.
And on some commercial sites, it can reduce occasional, costly peaks in power demand: this is known as peak shaving.
2. Manage the surplus solar
If the project holds a “complément de rémunération” (feed-in premium) contract, the solar energy stored in the battery can benefit from the terms of that contract, provided the operation was designed from the outset to remain compatible with flexibility control.
Otherwise, the surplus can be sold on the energy markets.
3. Monetise flexibility
A battery can also be paid for providing services to the power grid.
Depending on the mechanism, this value can relate to availability, to the energy actually activated, or to both:
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Availability only: the battery is paid for being available during critical periods. This is the case with the capacity mechanism (MECAPA), for example.
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Energy only: the battery earns revenue from the energy it actually charges or discharges. This is the case with NEBCO (France’s demand-response block exchange mechanism) and, more generally, with arbitrage on short-term markets.
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Availability + energy: some mechanisms pay for the capacity reserved for the grid and then for the energy called upon when activated. This is the case with primary (FCR), secondary (aFRR) and tertiary reserves.
The virtual power plant (VPP) we are developing at Nexen GridTech allocates the battery’s use optimally between the site’s needs, the grid’s needs and the management of surplus solar.
Do you distribute or install behind-the-meter batteries under 1 MW? Get in touch to assess the impact of intelligent control on the value they generate.