Case Study: Deploying Lithium Battery Storage for Peak Shaving in Industrial Facilities

Industrial facilities are facing increasing electricity costs due to peak demand charges and fluctuating energy prices. For energy-intensive operations, peak load periods can significantly impact overall operating expenses. This case study examines how a lithium battery energy storage system (ESS) was deployed in an industrial facility to achieve peak shaving, reduce electricity costs, and improve energy efficiency.

The industrial facility operates high-power equipment with uneven load profiles throughout the day. During peak production hours, electricity demand surged sharply, resulting in high peak demand charges from the utility provider. Although the facility had stable energy consumption overall, peak periods created unnecessary cost pressure and grid dependence.

The project objective was to reduce peak demand, optimize energy usage, and improve cost predictability without disrupting normal production operations.

A lithium battery energy storage system was installed and integrated with the facility’s existing electrical infrastructure. The solution included:

• High-capacity lithium battery modules with long cycle life
• An advanced battery management system (BMS) for real-time monitoring
• A power conversion system (PCS) to manage charge and discharge
• An energy management system (EMS) to control peak shaving strategies

During low-demand periods, the battery system was charged using grid electricity at lower tariff rates. When demand approached peak thresholds, the stored energy was discharged to support the load, effectively flattening the facility’s demand curve.

The ESS successfully limited peak load levels, significantly reducing demand charges from the utility provider.

By avoiding peak tariffs and optimizing energy usage, the facility achieved measurable reductions in monthly electricity expenses.

The system reduced load fluctuations and improved overall energy utilization efficiency across production cycles.

The energy storage system helped stabilize internal power supply and provided short-term backup power, reducing the risk of production interruptions.

The battery management system continuously monitored battery health, temperature, and state of charge, ensuring safe and reliable operation. The energy management system analyzed load patterns and automatically adjusted charging and discharging strategies to maximize peak shaving effectiveness while extending battery lifespan.

This industrial peak shaving case demonstrates how lithium battery energy storage systems can effectively reduce peak demand, lower electricity costs, and improve operational efficiency. For industrial facilities facing rising energy expenses, deploying a well-designed ESS offers a practical and scalable solution to optimize energy management and enhance long-term competitiveness.