Assessment of optimal energy storage dispatch control strategies for cost savings in 606 commercial and industrial facilities leveraging utility demand response programs

Joseph Elio and Ryan J. Milcarek

Applied Energy, 2025, vol. 384, issue C, No S0306261925002430

Abstract: Since global electricity demand is steadily increasing, without a corresponding increase in generation capacity, a shift must occur to ensure electricity demand better follows electricity generation. A movement towards this shift can be accomplished by leveraging battery energy storage systems in event-based demand response programs. This study evaluates optimal battery energy storage system dispatch, sizing, and control strategy to determine minimized discounted payback periods for battery energy storage system investments in 606 commercial and industrial facilities enrolled in event-based demand response. Limited research has focused on stand-alone behind-the-meter battery energy storage systems in commercial and industrial facilities. Key findings show that enrollment in event-based demand response is necessary for feasible discounted payback periods, as low as 4.75 years in multiple facilities. Additionally, this study identifies features of the input data that predict if a facility will have a feasible discounted payback period (e.g., demand response event electrical demand and electrical energy consumption). It is discovered that over 99 % of the facilities with an average demand response event peak demand greater than 80 kW achieved a discounted payback period of less than 20 years.

Keywords: Battery energy storage system; Demand response; Optimal dispatch; Commercial and industrial facilities, discounted payback period analysis; Energy management (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.125513

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