Energy storage as a service 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
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 , AES Corporation, STEM, and Younicos.
ESaaS primarily benefits large energy consumers with an average demand of over 500 kW, although, the service may benefit smaller facilities depending on regional incentives. Current early adopters of ESaaS are manufacturers, commercial, public facilities, and resources.
Benefits
System benefactor does not require installation capital
To participate in an ESaaS service, the installation system benefactor does not require any capital outlay. Upon installing an ESaaS service, the facility sees immediate savings and/or revenue generation. Initial capital is often a hurdle for facilities to adopt an energy storage system since in most cases, the payback period of an energy storage system is 5–10 years.
System operated by a third-party system operator
ESaaS is a contracted service that is automatically controlled by a third party. This eliminates responsibility for the facility to allocate resources to manage their energy profile allowing a facility to operate their core business. The system operators have knowledge of local electricity sectors that continually monitor and update system protocols as regional markets change. The information is used to optimize the value realized by the ESaaS system while still meeting facility requirements.
Environmental
For most ESaaS services, energy is stored during night time, off-peak hours when energy production is created from non-carbon emitting sources. The energy is then used to offset the required carbon emitting production during peak-times. The load shifting capability provided by ESaaS displaces heavy emitting generation requirements.
Pricing
ESaaS contracts may be structured as a cost sharing model or a fixed monthly price over a contracted term. Cost sharing models share the economical benefits of ESaaS after they are realized by the customer. The fixed price is based on potential economic benefit and applicable programs in the region of deployment. The ESaaS contract price is always less than the economic value provided by the service to ensure the client retains a net positive value through the service.