Utilizing an energy management system with distributed resources to manage critical loads and reduce energy costs

Abstract

Energy security is critical to the DOD and can be achieved using different methods, but for DOD installations cost effectiveness must be taken into consideration when evaluating energy security goals. Energy Storage Systems (ESSs) have a wide range of associated technologies as well as large differences in cost and capabilities. This study examines the cost effectiveness of utilizing an ESS to perform peak shaving with an Energy Management System (EMS). An EMS used with an ESS can perform several functions that can be beneficial to the grid. These functions include peak shaving, conducting power factor correction, matching critical load to most efficient distributed resource, and islanding a system during commercial grid disruption. While utilizing an ESS within a microgrid allows several benefits, to include peak shaving, the ability to utilize photovoltaic arrays during islanding, and power factor correction, the implementation of the ESS by itself is likely to prove cost prohibitive. The DOD requires energy projects to have net savings over the life cycle of the project and in areas without high differential between peak power and off-peak power, this goal will be difficult to achieve.