South Africa’s Best Innovator in Energy October2024

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VOL:10 ISSUE:30 2024

The

solution to our energy crisis lies in harnessing the innite power of the sun, wind, and water.

Editor’s V I E W

www.X.com/insightssuccess

A Global Wake-Up Call

Thecarbonfootprintisagreatglobalissuethatrepresentsthesumof

greenhousegasesdevelopedthroughhumanactivities.Mostly,these emissionsarefoundtoresultfromburningfossilfuelsforenergy,a processthatreleasescarbondioxide,amongotherdangerousgases,intothe atmosphere.AccordingtorecentreportsbytheWorldMeteorological Organization,greenhouselevelshavebeenreportedtoattainunprecedented highs,equivalenttothoseofthreemillionyearsago,whenEarthhadbeen significantlywarmerandhadmuchhighersealevels.

Statisticsarescaryabouttheemissionrate.CO2emissionshavegrownfourfold since1960.ThethreecountrieswiththehighestemissionsareChina,theUnited States,andIndia,whichaccountforhalfoftheemissions.Anaveragepersonin theU.S.isemittingmorethantwotimesthatofChina,fivetimesthatofa Mexican,and16timesthatofanEgyptian.Thiskindofgapnecessitatesurgent cuttingofcarbonfootprintatpersonalandnationallevels.

Combatingclimatechangerequiressynergybetweendevelopedanddeveloping countries.TheParisAgreementlimitsglobalwarmingto1.5°Cabovepreindustriallevels,withtheneedfordrasticannualcutsincarbonemissions.Itis estimatedthateachindividualshouldlookforwardtoreducinghisorherannual carbonfootprinttolessthantwotonsby2050.

Thisrequiresaconcertedeffortandcommitmentfromallcountriesinthe transitiontosustainablepractices.Carbonfootprintreductionisoneoftheways thatwillhelpcreateahealthierplanetforfuturegenerations.

Themostrecenteditionof Insights Success,titled "South Africa's Best Innovator in Energy," showcasesEnergyLED(Pty)Ltd.asapioneeringforceinthe lightingindustry.Foundedin2015,thecompanyaimstotransformthesector throughinnovative,energy-efficientsolutions.Theirofferingsincludeadvanced smartlightingcontrolsdesignedtooptimizeenergyusageandmaximizesavings, reinforcingthecriticalrolethatsustainablepracticesplayinaddressingclimate change.Thisversionmaintainstheoriginalmessagewhileenhancingclarityand engagement.

Haveagoodreadahead!

ENERGY

08. F E A T U R I N G

Energy LED (Pty) Ltd Transformative Lighting Solutions through Advanced Technology

A R T I C L E S

18. 22.

Demand Side Management: Optimizing Energy Consumption for Businesses

Distributed Energy Storage Systems: Revolutionizing How We Store Power

Creative energy is boundless when fueled by passion and purpose.

The new LED lighting has made a significant difference in our work environment. It's brighter, more consistent, and helps us focus better on our tasks, which has improved both safety and productivity.

Their solutions include smart lighting controls that optimize usage and further enhance energy savings.

Revolutionizing Lighting with Energy-Efficient LED Solutions

Thecarbonfootprinttodayisaprogressively

growingconcern.Itcan'tbecontrolled,butatleast wecanreduceit.Fossilfuelsareusedtogenerate power,releasinggreenhousegaseslikeCO2andother substancesthatcontributetoglobalwarmingand sometimesclimatechange.

Toaddressthischallenge,AndrewWinstonetookthe initiativetoreducecarbonfootprintandfoundedEnergy LED(Pty)Ltdwhileachievingsignificantcostsavings throughadvancedLEDtechnology

Withavisiontorevolutionizethelightingindustrywith energy-efficientsolutions,EnergyLEDwasfoundedin 2015.Hissolutionsincludesmartlightingcontrolsthat optimizeusageandfurtherenhanceenergysavings.

Thecompany'sgoalistodeliveracomprehensivesolution thataddressesthecustomer'sspecificneedswhile maximizingenergysavingsandfinancialbenefits.They accessfinancialbenefitscoupledwithimprovedlighting quality,contributingtoamoreproductiveandsaferwork environment.

Theyhavesuccessfullypartneredwithleadingcompanies toimplementtransformativelightingsolutionsthatdrive sustainabilityandcostsavings.Itsprojectsshowcase EnergyLED'sabilitytodeliversubstantialenergyandcost savingsfortheircustomersthroughtheirenergy-efficient LEDlightingsolutions.

Let us explore its journey:

AndrewWinstone:FromPrivateEquitytoLED LightingInnovation

AndrewWinstone,CEOofEnergyLED,graduatedwitha BachelorofBusinessSciencewithHonorsinFinancefrom theUniversityofCapeTownin2001.Hisprofessional journeybeganinprivateequity,whereheeventually becametheCFOofEfekto,aleadingportfoliocompany.

Hisroleinvolvedoverseeingfinancialoperationsuntilthe companywassoldandlistedaspartofAscendisHealthin 2011.Followingthis,hetookacareerbreaktoexplorenew ventures,focusingontheemerginggreenenergysector

DuringhistenureatEfekto,hediscoveredthebenefitsof LEDlightinginreducingelectricitycostsandenhancing ROI.ThisexposuresparkedhisinterestintheLEDlighting industry.

In2015,drivenbyapassionforsustainabilityand innovativetechnology,hefoundedEnergyLEDto contributetoreducinggreenhouseemissionswhile providingcost-savingandworkplaceenvironment improvementsolutionsforbusinesses.

EnergyLED:RevolutionizingLightingwithEnergyEfficientSolutions

EnergyLEDwasfoundedin2015,bornoutofavisionto revolutionizethelightingindustrywithenergy-efficient solutions.Ourmissionistohelpbusinessesreducetheir carbonfootprintwhileachievingsignificantcostsavings throughadvancedLEDtechnology.

Startingwithasmallteamofdedicatedprofessionals,they havegrownovertime,implementingoverR200million worthofenergy-efficientlightingsolutions.Itsjourneyhas beenmarkedbykeymilestones,includingstrategic partnershipswithleadingOEMslikePhilipsand recognitionasaLevel2BBBEEcontributor,empowered bytheSABThriveFund.

EnergyLEDhasalsostartedsubsidiariesinBelgiumand theUKtoexecuteLightingasaServiceprojectsfor ABInBevintheseregions.Theseachievementsreflectthe company'scommitmenttoquality,sustainability,and customersatisfaction.

SubstantialSavingsandEnhancedWorkplace Environments

EnergyLED’slightingsolutionsaredesignedtodeliver substantialenergysavingsbyutilizingadvancedtechnology thatsignificantlyreduceselectricityconsumption.By switchingtohigh-efficiencyLEDs,businessescanexpectto seeareductionintheirlightingenergycostsbyupto 60–70%.Thisisachievedthroughsuperiorluminaire efficacy,alongerlifespan,andreducedmaintenance requirements.

Additionally,theirsolutionsincludesmartlightingcontrols thatoptimizeusageandfurtherenhanceenergysavings. Thesefinancialbenefitsarecoupledwithimprovedlighting quality,contributingtoamoreproductiveandsaferwork environment.

DemonstratingtheFinancialBenefits

InEnergyLED'sfeasibilityreportsandproposals,the companyprovidesacomprehensiveanalysisofkey financialmetricstodemonstratethevalueofitsLED lightingsolutions.Thesemetricsinclude:

• ReturnonInvestment(ROI):calculationofthetimeit takesforthesavingsfromtheLEDlightingsystemto covertheinitialinvestment.

• InternalRateofReturn(IRR):assessmentofthe profitabilityoftheinvestmentovertime.

• PaybackPeriod:Estimationofthetimerequiredto recouptheinvestmentfromenergysavings

• TotalCostofOwnership(TCO):Comparisonofthe overallcostsoftheLEDsystemversustraditional lightingovertheproduct'slifecycle.

Thesemetricsprovideaclearpictureofthefinancial benefitsandlong-termvalueofEnergyLED'sLED solutions,helpingbusinessesmakeinformeddecisions abouttheirlightinginvestments.

DrivingSustainabilityandCostSavingsforClients

OnenotableprojectwaswithGivaudanattheirTulisaPark operationinJohannesburg.Theexistinginefficientlighting atGivaudan'sfacilitywasprojectedtocostthemaround R31millionover10years.

BypartneringwithEnergyLED,Givaudanaimedto significantlyreduceenergyconsumptionwhilemeeting OccupationalHealthandSafety(OHS)luxrequirements. EnergyLEDinstalledthelatestPhilipsLEDtechnologies, whichreducedGivaudan'senergyconsumptionbyover 70%,resultinginanannualenergysavingof651,407kWh andareductionofcarbonemissionsbyalmost4,500tons.

AnothersuccessfulcaseisEnergyLED'spartnershipwith BoschRexrothNEW.BoschRexrothwasfacingsignificant energycosts,spendingoverR1.5millionannuallytorun 637lightsat115.9kWdaily.Throughtheircollaboration andtheimplementationofPhilip’slatestLEDproducts,it helpedBoschRexrothreducetheirenergyconsumptionby 52%.

DeliveringCutting-EdgeLEDLightingSolutions

AsaPhilipsProfessionalLightingPartner,thecompany offersitscustomersaccesstocutting-edgeLEDtechnology renownedforitsquality,reliability,andinnovation.Philips LEDsaredesignedforhighperformance,offeringsuperior luminaireefficacy,exceptionalcolorrendering,andlong lifespans.Thesefeaturesensureconsistentlightingquality andreducedmaintenancecosts.

Additionally,Philipstechnologyincludesadvancedcontrol systemsthatenablesmartlightingsolutions,optimize energyusage,andenhanceoperationalefficiency.The strongR&DbackingofPhilipsensuresthatthecompany's customersbenefitfromthelatestadvancementsinLED technology,makingtheirlightingsystemsfuture-proofand highlyefficient.

Thecompanyalsoprovidescustomerswithleading solutionsfromotherOEMssuchasBeka,LEDVance,and Aurora,whichenablescustomerstocostandcompare leadingOEMproductsandtheirrespectivelifespans, savings,andefficiencies.

RapidPaybackandImpressiveROIwithLEDLighting Solutions

ThetypicalpaybackperiodforEnergyLED'slighting solutionsrangesfrom12to24months,dependingonthe scopeandscaleoftheproject.Thisrapidpaybackisaresult ofsubstantialenergysavingsandreducedmaintenance costs.

Thereturnoninvestment(ROI)isalsoimpressive,with manyofthecompany'sclientsexperiencingaprojectROI of500–700%andIRRsof50–120%perannum.For example,aninefficient400Whigh-bayconversioncansave R80,000inenergyover9yearsforalightthatcosts R2,500,resultinginareturnthatis32timestheinitialcost.

Thesefinancialbenefitsaredrivenbythehighefficiencyof EnergyLED'ssystems,whichreduceelectricity consumptionbyupto70%,andthelonglifespanoftheir products,whichminimizesreplacementandmaintenance costs.

Thesereturnsarealsopossibleduetothespiraling electricitycostsinSouthAfricaoverthepast10yearsand thereducedcostofLEDtechnologyduringthatperiod.

By partnering with Energy LED, Givaudan aimed to significantly reduce energy consumption while meeting Occupational Health and Safety (OHS) lux requirements.

Selecting products that offer the highest energy savings while meeting the lighting requirements.

BenefitsforCustomers

EnergyLED'sstatusasaLevel2QSE(B-BBEE)company empoweredbytheSABThriveFundprovidessignificant benefitstoitscustomers.Thisdesignationreflectsthe company'scommitmenttoeconomicempowermentand compliancewithSouthAfrica'sB-BBEEregulations, makingEnergyLEDapreferredsupplierforbusinesses aimingtoimprovetheirB-BBEEscorecards.

Furthermore,EnergyLED'spartnershipwiththeSAB ThriveFundenhancesitsfinancialstabilityandcapacityto undertakelarge-scaleprojects.Thisempowermentstatus notonlyfacilitatescompliancewithregulatory requirementsbutalsosupportsEnergyLED'sclient’s corporatesocialresponsibilityinitiativesbypartneringwith acompanythatprioritizescommunitydevelopmentand economicinclusivity

ComprehensiveSiteSurveyandFeasibilityReport Process

EnergyLEDfollowsastructuredprocessthatbeginswitha detailedsitesurveyconductedbyourexpertteam.During thissurvey,theyassesstheexistinglightinginfrastructure, measurecurrentlightlevels,andidentifyareasfor improvement.

Theyalsoconsiderfactorssuchasenergyconsumption, maintenancecosts,andoperationalrequirements.Following thesurvey,theydevelopedacomprehensivefeasibility reportthatincludesacost-benefitanalysis,energysavings projections,anddetailedfinancialmetricssuchasROI, IRR,andpaybackperiod.

Thisreportisaccompaniedbyacustomizedproposalthat outlinestherecommendedLEDsolutions,product specifications,andimplementationtimeline.EnergyLED providesitscustomerswithaclear,data-drivenroadmapfor transitioningtoenergy-efficientlighting.

KeyFactorsConsideredbyEnergyLED

WhendeterminingtheappropriateLEDreplacement productsforitscustomers'lightingneeds,EnergyLED considersseveralkeyfactors:

• LightingRequirements:Assessingthespecific lightingneedsofthespace,includingrequiredlight levels,colortemperature,anddistribution.

• EnergyEfficiency:Selectingproductsthatofferthe highestenergysavingswhilemeetingthelighting requirements.

• Compatibility:EnsuringthatthechosenLED productsarecompatiblewithexistingfixturesand electricalsystems.

• DurabilityandLifespan:Choosingproductswith longlifespansandlowmaintenancerequirementsto maximizeROI.

• SmartFeatures:Incorporatingadvancedcontrolsand smartlightingcapabilitiestoenhancefunctionality andefficiency

Bycarefullyevaluatingthesefactors,EnergyLEDensures thatitscustomersreceivethebestpossiblelighting solutionstailoredtotheirspecificneeds,deliveringoptimal performance,energysavings,andlong-termvalue.

EnhancingWorkplaceSafetyandProductivity

EnergyLED'slightingsolutionsenhanceOccupational HealthandSafety(OHS)compliancebyproviding consistent,high-qualityilluminationthatreducestheriskof accidentsandimprovesvisibilityintheworkplace.Proper lightingiscriticalformaintainingsafeworkingconditions, especiallyinindustrialandmanufacturingsettings.

Additionally,EnergyLED'sLEDlightsproducelessheat, reducingthermalhazardsandimprovingoverallcomfort. Enhancedlightingqualityalsoboostsproductivityby creatingabetterworkingenvironment,allowingemployees toperformtasksmoreefficientlyandaccurately.

Theseimprovementscontributetoasafer,moreproductive facility,aligningwithbothOHSstandardsandoperational goals.AsoneSABRosslynBreweryworkernoted,“The newLEDlightinghasmadeasignificantdifferenceinour workenvironment.It'sbrighter,moreconsistent,andhelps usfocusbetteronourtasks,whichhasimprovedboth safetyandproductivity.”

ReducingCO2EmissionsandSupportSustainability Goals

EnergyLED(Pty)Ltd'sLEDlightingprojectshave significantlycontributedtoreducingCO2emissionsby loweringenergyconsumption.Theirinstallationshave

Another successful case is Energy LED's partnership with Bosch Rexroth NEW.

collectivelyreducedCO2emissionsby809,616tons,a testamenttotheenvironmentalimpactoftheirsolutions.

Byswitchingtoenergy-efficientLEDs,EnergyLED's customersnotonlyachievesubstantialenergysavingsbut alsoalignwiththeirsustainabilitygoalsbyminimizingtheir carbonfootprint.

Theseprojectssupportglobaleffortstocombatclimate changeandpromoteenvironmentalstewardship,making theircustomer’soperationsmoresustainableandsocially responsible.

TransformingCustomer’sOperationsandFinancial Performance

Onestandoutsuccessstoryinvolvestheirextensivework withABInBev.Since2017,EnergyLEDhasinstalledover 30,000lightsacross17distributioncentersand9breweries inSouthAfrica,withthetotalprojectvalueamountingto overR30million.

ThisinitiativeresultedinelectricitysavingsofoverR200 million.Morerecently,EnergyLED'simpactextendedto Europe,wheretheyconvertedtheStellaArtoisBreweryin Leuven,Belgium,usinganinnovativeLightingasaService (LaaS)model.

DemandSide Management: Optimizing Energy Consumption fBusinesses

DemandSideManagementisoneofthe

fundamentalstrategiesthatassistin optimizingenergyusage,especiallyforthe firms.Itcomprisesvariousmeasuresthatencourage consumerstochangetheirenergyusagepatterns especiallyatpeakdemandtimes.Thiswouldhelp stabilizetheelectricitygridalongsideimportant costandenvironmentalsavings.

DemandSideManagement:Definition

Atitsmostbasiclevel,DSMaimstochange consumerenergydemandthroughbehavioral changes,financialincentives,andtechnological advances.Basically,thethrustistocutdownon energyuseatpeakhoursorshiftusagetooff-peak hours.Thisstrategydoesnotnecessarilyreducethe consumptionofenergyasawholebutfocuseson betterdemandmanagementthatwouldminimize costlyinfrastructureinvestmentsuchasbuilding newpowerplants.

AccordingtotheU.S.EnergyInformation Administration,asurgeorpeakelectricitydemand intheUnitedStatesincreasesthecostandthe pressureonthegrid.Forexample,for2022,peak demandrecordedabout757GW,provingthat tremendousmanagementhastobetranslated duringsuchpeaktimes.

Benefits

ofDemandSideManagement

• CostSavings:Perhapsoneofthemost attractivereasonscompaniesshouldembrace DSMpracticesisthecostsavingsthatcanbe highlyimpressive.Savingonenergyuseby

conservingitwhenpeaksisagood waytosavealotofmoneyfrom utilities.Researchclaimsthat DSMprogramscouldsavea companyupto20%inenergy expenditure.

• EnvironmentalImpact:DSM impactsthecontributionto greenhousegasemissionsdirectly Sinceitreducesrelianceonfossil fuelpowerplantsatpeaktimes-the mostpollutingsourcesof electricity-itresultsinacleaner environment.Forexample,astudy conductedbytheInternational EnergyAgencyapproximatedthat effectiveDSMcouldresultinan abatementofglobalCO2 emissionsofupto1.5gigatonsper year

• GridStability:Besideshelpingin energydemandmanagement,this systemkeepsthegridstable, henceloweringtheriskofhaving ablackoutoroutageofanyform. Whenthereispeakdemand,the utilitieshavetodependonaless efficientandsometimescostlier sourceofpower.Shifting consumptionpatternscanrelieve somepressureoffofthose resourceswithDSM.

DemandSideManagement Strategies

Several strategies are applied within DSM frameworks:

• Time-of-UsePricing:Electricityis chargedatvarioustimes throughouttheday.Duringhigh consumptionhours,itbecomes costlier,andtoreducetheirenergy bills,customerslookforwardto usingenergyduringnon-peak hourswhenratesarelesser

• IncentivesforEnergyEfficiency: Thecompanycanearnbenefitsby promotingtheirinstallationof energy-efficientappliancesand systems.Energyconsumption decreases,andatthesametime, efficiencyinoperationsincreases.

• LoadShifting:itinvolvesshifting energy-intensiveactivitiesto periodswhenelectricityischeaper

andplentiful.Forinstance,the operationofheavymachineryina manufacturingfacilitycanbe scheduledduringnighthours.

• DemandResponsePrograms: Consumersareinformedby utilitiesabouttheperiodwhen theyshouldreducetheirdemand orshiftthemtoaccommodaterealtimegridconditions.Participants arecompensatedinmonetary termsfortheireffort.

RoleofTechnologyinDSM

Theadvancementsinthetechnology improvetheDSMprograms significantly.Smartmetersandother IoTappliancesareconnectedtorealtimemonitoringcapabilities,which allowscompaniestocontrolusage patterns.Forexample,smart thermostatsautomaticallyadjust heatingorcoolingactivitytofollow occupancyandtime-of-dayprices.

Besides,renewablesourcesofenergy likesunlightandwindcanalsobe consideredinDSMpoliciesas contributorstowardachievingits benefits.Itcouldhelpthemreduce peakdemandatpeaktimesincethe storedenergymaybeusedatthistime duetolowrenewablegeneration.

ChallengesinDemandSide Management

DespitethevariousadvantagesDSM has,italsohassomechallengesthat comealongwithitsimplementation.

Thefirstisthatconsumerengagement isverylow.Manypeopleand businessesdonotknowthatchanging theirpatternsofenergyconsumptionis beneficial.Educationcampaignsand clearcommunicationfromutilitiesare oneofthewaysoutofthisobstacle.

Inaddition,theDSMpoliciesshould bedevelopedtosupporttheDSM initiativesfully.Policymakersmust developincentivesthatencourage participation,onbothutilityand consumersidesofthedemand-side managementprograms.

Conclusion

DemandSideManagementrepresents anessentialapproachforbusinesses strivingfortheoptimizationoftheir energyconsumptionalongwitha positivecontributiontoward environmentalsustainabilityandgrid reliability.Itsavesonvaluablecosts throughtime-of-usepricingandload shiftingtechniques,ensuring greenhousegasreductionthroughits ownmeans.

Whileadvancedtechnologiesare gettingclosertoreality,theprospect foreffectiveDSMonlyincreases,thus placingbusinessesonthemore efficientandsustainablesideofthe roadtowardanincreasinglyenergyconsciousworld.Withproper incentivesandeducationalefforts, consumersandutilitiescanjoinforces tocreateamorebalancedandresilient futureforenergy

Energy is the golden thread that connects economic growth, increased social equity, and an environment that allows the world to thrive.

– Ban Ki-moon

Distributed Energy Storage Systems: Revolutionizing How We Store Power

DistributedEnergyStorageSystems,in

fact,transformthefaceofenergy management.Tothisend,newsolutions inrelationtochallengesposedbyconventional practicesinpowergenerationarepresentedto consumers.Thesystemsallowfordecentralised energystorageandopenopportunitiesforbetter utilizationofrenewablesources,increasingthe robustnessandefficiencyofgrids.

DistributedEnergyStorageSystems:

UnderstandingtheBasics

DistributedEnergyStorageSystemsareintegral partsofthegenericcategoryreferredtoas DistributedEnergyResources.Unlikethe traditionalpowerplantsthatgenerateelectricity centrallyandtransmitoveralongdistance,DESS arelocatedclosertowhereenergyisconsumed.

Suchproximityreducesthetransmissionlosses andmakespowersupplyreliable.DESSoftenrely onvarioustechnologies,likebatteries,pumped hydrostorage,andthermalstoragesystems,to storegeneratedrenewableenergy,suchassolar andwind.

RoleofBatteries

ThemostpopularapplicationofDESStechnology todayisbatteries,primarilylithium-ionbatteries, whichareusedmainlybecauseoftheirhigh energydensityandveryrapidresponsetimes. Newstatisticshavejustbeenreleasedpredicting greatdevelopmentintheglobalbatteryenergy storagemarketatacompoundannualgrowthrate ofover20%from2022to2030.This developmentisexpectedtobederivedfromthe

increasingdemandforrenewable energyintegrationandnecessarygrid stability.

OtherStorageTechnologies

Whilebatteriesdominate,other technologiesalsoplayanimportant roleindistributedenergystorage:

• PumpedHydroStorage(PHS): Theestablishedtechnology employsexcesselectricityto pumpwaterupwardtoaheight. Uponincreaseddemand,the storedwaterisreleasedto generateelectricity.It'slarge capacityandreliabilityarewellknown.

• CompressedAirEnergyStorage (CAES):StorageinCAES systemsisbycompressingair withinundergroundcaverns.The compressedairisusedtoproduce electricitywhendemandfor powerishigh,eitherbyheating orexpandingitthroughturbines.

• ThermalEnergyStorage:Thisis thestorageofunusedenergy excesswhichcanbeusedlatterly toheatandcool.Thematerials wouldbethosecapableofstoring heatorcold;therefore,there wouldbepropermanagementof energy.

BenefitsofDistributedEnergy Storage

TherearemanyadvantagesofDESS; theirprimarybenefitincludes increasingenergyindependenceto consumers.Bysavingrenewable sourcesofenergygenerated,families andcompaniescanreducetheir relianceoncentralpowergrids.Inthis regard,independentconsumersare valuableduringperiodsofpeak demandorincaseofdisruptionsofthe centralpowercausedbyextreme climaticoccurrences.

EconomicAdvantages

Intermsofeconomics,DESSwouldbe beneficialforahomeownertosaveso muchonelectricityconsumption.

Itusuallystoresenergyatoff-peak periodswhentherateislowand employsthesameduringpeaktime whentheratesoars.Otherthanthe monetarybenefits,DESScanbea meansofincomesinceseveral programsrewardareductioninpeak hourconsumption.

EnvironmentalConsideration

Anotherenvironmentalkeyfeatureof DESSisthatitcanenablethe integrationofgrid-basedrenewable energyintothegridand,thus,decrease greenhousegasemissionsfrompower generationbasedonfossilfuels.For instance,astudyindicatedthatthe reductionofcarbonemissionsthrough anintegrationofdistributedstorage withrenewableresourcescouldbeas highas40%insomeareas.

BarricadestoDistributedEnergy Storage

WhileDESScomewithseveral benefits,therearemanyreasonsthat needtobeaddressedinordertoput themintoevenmoreextensiveuse. Theforemostconcernisthecostof initialinvestmentfrombatterysystems andotherstoragetechnologies,which isquitehigh.Whilepriceshave declined-thecostofbatteries,for example,droppedabout89%from 2010to2020-moredeclineswillbe requiredinordertomakeDESS sufficientlyaffordable.

Yetanotherkeychallengeisthe regulatoryframework,foreverlagging. Manyutilitiesstillhavenotbuiltupthe infrastructureandpolicythatwillbe requiredforthewidespread deploymentofdistributedstorage solutions.Improvingregulationswill helpbetterintegrateDESSinto existingenergysystems.

FutureforDistributedEnergy Storage

Thedistributedenergystoragesystem hasabrightfuture.Therapid improvementintechnology,with consequentlowcost,isexpectedto

raisetheadoptionratesveryquickly

TheInternationalEnergyAgencyalso reportsthat,globally,itwillbea commonchoiceforhouseholdsand businessesinthenextdecadefor distributedsolarPVsystemswith storage.

Withelectricvehiclesgetting prominent,theycanbeseenasthe storageunitofthegridonwheels.The vehicle-to-gridtechnologymakesit possibleforEVstofeedbackthe storedenergytothegridatcritical timesofdemandandcreatesmore flexibilityandresilienceofthegrid.

Distributed

EnergyStorageSystems arethefuturepointofone'schangein thestorageandmanagementofpower inshort.Theywillcatertoincreased relianceonrenewableresources,give costandenvironmentalbenefits,and aretherebyveryaptatshapinga sustainableenergyfuture.Thisis broughtaboutbygreatinvestmentin technologydevelopmentandan excellentregulatoryframeworkforthe exigenciestobeovercomeinachieving thefullrealizationofpotentialfor distributedenergystoragesolutions.

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