Welcome to the 1st edition of our BTM (Behind-The-Meter) Series! We’re turning our attention to the stationary energy storage markets & exploring some fundamental concepts in the energy sector relating to the grid, renewable energy integration, & the evolving role of battery systems in enhancing grid reliability & stability. Join us this week as we focus on Behind the Meter (BTM) energy systems & why they’re important.
Contact: Betsy Barry
Communication Manager
706.206.7271
betsy.barry@acculonenergy.com
In the energy sector, understanding the distinction between front-of-the-meter (FTM) and behind-the-meter (BTM) systems is fundamental. Imagine the electric meter at your home or business as a crucial dividing line.
Front-of-the-meter (FTM) refers to all the components of the electrical grid that exist between this meter and the large-scale electricity generation sources. This includes the infrastructure we typically associate with the power grid: transmission lines, substations, transformers, as well as utility-scale power plants (traditional coal burning or nuclear power plants, or renewable ones like solar and wind farms), and large energy storage facilities operated by utilities. The electricity generated or stored in these FTM systems must pass through your electric meter to reach you, the end-user. These systems are vital for overall energy supply and grid stability.
In contrast, behind-the-meter (BTM) encompasses all the energy-related systems and infrastructure located on the customer’s side of the utility meter. This includes the internal electrical systems of a building, such as breaker panels and wiring, as well as any on-site energy generation and energy storage technologies that serve the local energy needs.
Common examples of BTM systems include rooftop solar photovoltaic (PV) panels, small wind turbines, combined heat and power (CHP) systems, electric vehicle (EV) charging stations (especially when integrated with storage), energy management systems (EMS), and most importantly, energy storage solutions like battery energy storage systems (BESS). Energy generated or stored by these BTM systems can be used directly by the facility without passing through the electric meter, hence the term “behind the meter”. BTM systems are relevant for all types of customers: residential, commercial, and industrial.
See Figure 1 below:
The rise of BTM systems, driven by decreasing costs of renewable generation & energy storage, growing sustainability demands, & increasing focus on energy resilience, signifies a shift towards a more distributed & customer-centric energy paradigm.
Energy storage, particularly battery systems, forms a cornerstone of effective BTM implementations. Here’s why:
1. Reducing Peak Demand Charges:
Commercial and industrial customers often face demand charges based on their highest instantaneous power usage. BTM energy storage enables them to discharge stored energy during periods of peak demand, thereby lowering their maximum power draw from the utility and potentially leading to substantial cost savings.
2. Facilitating Energy Arbitrage:
In areas with time-of-use (ToU) electricity pricing, batteries can be charged during off-peak hours when electricity is cheaper and discharged during on-peak hours when prices are higher, allowing customers to benefit from the price difference and reduce their overall energy costs.
3. Enhancing Energy Resilience and Providing Backup Power:
During power outages, BTM battery systems can provide a reliable backup power supply for critical loads, ensuring business continuity and safety. This is increasingly important given the rising frequency of grid disruptions due to extreme weather and an aging infrastructure.
4. Supporting Grid Stability and Enabling Participation in Virtual Power Plants (VPPs):
Aggregated BTM energy storage systems can offer valuable services to the grid, such as demand response and frequency regulation, contributing to overall grid stability. Customers can also participate in VPPs, potentially earning revenue for their contribution.
5. Managing EV Charging Loads:
The increasing adoption of EVs places new demands on the electricity grid. BTM energy storage can help buffer these loads, allowing for optimized and potentially lower-cost EV charging.
6. Maximizing Self-Consumption of Renewables:
When BTM systems include intermittent renewable sources like solar or wind, batteries allow the storage of excess energy produced during peak generation for use when the renewable resource is unavailable. This significantly increases the self-consumption of clean energy and reduces the need to draw power from the grid.
The rise of BTM systems, driven by decreasing costs of renewable generation and energy storage, growing sustainability demands, and increasing focus on energy resilience, signifies a shift towards a more distributed and customer-centric energy paradigm. Energy storage, and particularly battery systems, are crucial enablers of this transition, empowering end-users to take greater control over their energy consumption and reduce costs.
What’s more, safety, cost and sustainability are all important factors when it comes to what kind of battery system is the right centerpiece for a residential, commercial, or industrial customer looking to invest in BTM energy storage solutions. In the coming weeks, we’ll be exploring the options for BTM energy storage, focusing on what has been historically deployed and newer emerging technologies and how they address specific BTM use cases.