Next Generation Energy Storage in Commercial Real Estate

Energy storage allows renewable energy systems to store energy to make sustainable energy more efficient and effective in commercial real estate. Energy storage is a way for buildings to operate with lower energy costs and higher sustainability by saving excess energy for later use.

The Department of Energy (DOE) has been funding and supporting research on energy storage and recently devoted $505 million dollars toward a four-year initiative focused on commercializing and implementing energy storage in the United States. Currently, shortterm energy storage batteries like lithium-ion batteries are popular, but they typically only hold energy for two to four hours.

In September 2022, the DOE hosted the second annual Energy Storage Grand Challenge Summit. This summit focused on the unification of energy focused organizations and government organizations to achieve long term energy storage and discuss the newest technologies with leading professionals. This summit included discussions, presentations, and collaborations to ensure steps toward affordable and functional long duration energy storage.

The Energy Storage Grand Challenge (ESGC) was created to foster growth in innovative battery designs and propel the industry many years forward. The ultimate goal of the ESGC is “to develop and domestically manufacture energy storage technologies that can meet all marketplace demands by 2030.”

Their focus for achieving and deploying energy storage technology that can support the energy market by 2030 hinges on reliability and security. To aid in this achievement, the DOE introduced the ESGC Roadmap in 2020 that employs various tracks to achieve that goal that includes everything from policy to technology.

On-Site Energy Storage

Progression in energy storage technology helps answer the question “What if we have extra power from renewables and what do we do with it?” In the next decade, commercial real estate owners could have the opportunity to implement on-site energy storage that stores energy from solar panels, wind, energy, or other sustainable energy sources.

On-site energy storage would allow commercial real estate owners to rely less on the traditional energy grid. Specifically in times of high demand, property owners can save money on electricity while also practicing sustainability.

Long Versus Short-Duration Energy Storage

Long-duration energy storage is categorized by systems that can store energy for long periods of time like multiple hours or days. pumped storage hydropower (PSH) systmes like reservoirs act as long-duration energy storage because water is pumped to an upper reservoir to store the hydroelectric power while there is excess energy in the power grid and can be released when needed. There are numerous innovative PSH technologies being developed currently, such as submersible pump-turbines, geomechanical PSH, and hybrid systems.

Short-duration energy storage is categorized by system that store energy for shorter periods of time like hours or minutes. Lithium or Cobalt batteries are an example of short duration energy storage, and they power most electric vehicles and are rechargeable.

Lower Costs

The implementation of these energy storage systems could lower energy costs because building will depend less on regular energy as opposed to renewable sources. On-site renewable energy storage can also help building owners and managers better regulate their energy usage.

The progress of energy storage systems makes renewable energy systems more cost effective by making them more useful for long duration energy storage. Regulating the power grid will also reduce current fluctuations in availability and cost.

Demand/ Energy Security

The introduction of energy storage technology can decrease and stabilized demand for energy on the power grid.

The introduction of energy storage technology in commercial real estate spaces can also make electricity more reliable by not depending on the power grid but also being able to avoid fluctuations in renewable energy sources outputs.

For example, if you’re using solar panels at your property and your area is sunny for two weeks then overcast the following two weeks, energy storage systems would allow you to store the energy from the previous weeks to use during the overcast weeks.

Overall Sustainability

In terms of sustainability, the availability of energy storage systems as well as renewable energy sources reduces reliance on fossil fuels and subsequently reduce greenhouse gas emissions. Energy storage solutions also make renewable energy sources more reliable and intuitive to implement in all sectors.

A study from the journal, Nature Communications, found that “some energy storage technologies allow 90-percent CO2 reductions.” Their study showed the quantitative benefit energy storage can have on reducing carbon dioxide emissions and thus greenhouse gas emissions. The implementation of renewable energy storage solutions can make a significant impact on the reduction of greenhouse gas emissions.

Sources:

DOE provides $505M to advance long-duration energy storage fed by renewables | Utility Dive

Short-Term Energy Storage in a Net-Zero Future — NET-ZERO

The Importance of Energy Storage Systems for Sustainable Operations - Galooli

The role of energy storage in deep decarbonization of electricity production | Nature Communications

A Review of Technology Innovations for Pumped Storage Hydropower | HydroWires, US DOE