Frequency Regulation 101—What it is and Why it Matters
To maintain the reliability of the electric power grid, it is essential to continuously balance electrical supply and demand. Grid operators focus on forecasting demand and scheduling generation ahead of time, but short-term challenges in load forecasts and expected fluctuations in power plant output are inevitable. Because the balance between supply and demand must be continuously maintained, changes in load (predicted or otherwise) can require rapid adjustments within sub-seconds to minutes.
The maintenance of the power grid at a constant value (typically 60 Hertz), is known as “frequency regulation.” This is necessary to ensure grid stability and reliability, balancing supply and demand in real-time in order to maintain a steady system frequency by:
- Adjusting to moment-to-moment changes in electricity use
- Correcting unexpected fluctuations in power generation
- Managing differences between forecasted and actual power flow
Frequency regulation resources (like a power plant or an energy storage system) are financially incentivized to adjust their output according to signals from the grid operator, ensuring real-time response to short-term mismatches between supply and demand.
Why Frequency Regulation is Becoming More Difficult
The increasing amount of renewable energy on the electric grid is accelerating the need for frequency regulation. Renewable energy resources are coming online at an accelerated pace, and the need for renewable energy on the grid will continue to grow, but these resources are considered “intermittent.” Unless we have a way to store renewable generation, we only have access to these resources when the sun is shining, or the wind is blowing.
Historically, power on the grid has flowed in one direction (from generation to transmission to distribution to customers) but with more and more customers producing their own power, i.e., solar panels at businesses or residences, power is now flowing in multiple directions. The grid was not built for this.
As a result, there is a growing opportunity for businesses, particularly energy-intensive businesses, to participate in frequency regulation (and get paid doing it). One particularly easy way to do this is with an on-site battery energy storage system, which can reduce energy costs for businesses in several ways (including, of course, frequency regulation).
How Battery Storage Systems Can Participate in Frequency Regulation—And Lower Business’ Energy Costs
Energy storage systems allow electricity to be stored—and then discharged—at the most strategic times. Today, Lithium-ion batteries, the same batteries that are used in cell phones and electric vehicles, are the most common form of energy storage. Like the batteries in your cell phone, commercial- and industrial-scale battery energy storage systems can be charged with electricity from the grid, stored, and discharged when there is a deficit in supply or when energy is most expensive which saves customers money.
Battery storage is well-suited to supporting frequency regulation because of its unique ability to be charged and discharged nearly instantaneously. Again, a battery storage system can pull power from the grid when there is a surplus—and inject power onto the grid if there is a deficit (i.e. demand outstrips supply).
Increasingly, battery energy storage is being paired with solar photovoltaics (PV), which maximizes the value of solar energy to the grid (i.e., storing solar-generated electricity for when it is cloudy or after the sun sets).
Batteries do not generate power; batteries store power. As a result, knowing when to charge and discharge a battery storage system is critical.
Convergent Energy and Power (Convergent) is a leading provider of energy storage solutions in North America. Convergent has over a decade of experience financing and managing all aspects of the energy storage development cycle to help customers reduce electricity costs and increase reliability. The company’s commercial, industrial, and utility-scale assets can yield seven-figure savings while advancing the clean energy transition.
Convergent’s PEAK IQ® energy storage intelligence is creating maximum value for our customers. We have saved businesses up to 40% off their electricity bills and deferred multimillion-dollar infrastructure upgrades for utilities. We do this using state-of-the-art machine learning, artificial intelligence, and advanced analytics to make data-driven decisions about when and how to dispatch energy storage for optimal value creation.
Convergent actively participates in frequency regulation across different markets. How does this save your business money? Participation in frequency regulation, in addition to other value streams, is maximized and shared with our customers. This means more money for your bottom line!
In other words, Convergent operates and maintains on-site renewable energy systems on behalf of customers—determining the peak times to charge and discharge the batteries for optimal value creation.
Additional Benefits of On-Site Battery Storage Systems for Businesses
Frequency regulation is not the only benefit of an on-site battery storage system. A battery storage system can lower your facility’s energy costs and carbon emissions (especially when paired with solar PV) and increase reliability at your plant. Here at Convergent, we typically charge our battery storage systems when electricity is cheapest and discharge these systems when electricity is most expensive to reduce customers’ energy costs by millions of dollars over the life of the system.
For energy-intensive businesses looking to cut electricity costs—or hedge against future cost increases— and support sustainability targets, battery storage and/or solar PV is a seamless solution.
Learn More About the Benefits of On-Site Renewables and Value Streams by Connecting with Convergent
Ready to lower energy costs? Reduce your carbon footprint? Increase reliability?
Convergent has been in the energy storage industry since its infancy, more than a decade ago. Throughout that time, we’ve gained experience and expertise, working closely with businesses to take the hassle out of energy storage by building, owning, and operating systems on their behalf. We’re proud to say that it has never been easier to integrate energy storage into your organization.
Naturally, it is important to have a trusted partner in developing and operating your on-site renewable energy system (spoiler alert: that partner should be Convergent!).
To learn more about how an energy storage system (with or without solar PV) can benefit your business, schedule a free, no-obligation introductory call with our team today.
