Join us as explore Front-of-Meter (FTM) energy storage systems & why they are important to the domestic grid!
Contact: Betsy Barry
Communication Manager
706.206.7271
betsy.barry@acculonenergy.com
In energy circles, discussions around “grid modernization” and “renewable integration” are becoming commonplace. Central to these efforts is the strategic deployment of energy storage systems. In the past, we’ve explored “Behind-the-Meter” (BTM) energy storage, but just as crucial, if not more so with respect to the broader, domestic grid, are Front-of-Meter (FTM) energy storage systems.
So, what exactly does FTM mean, and how does it differ from its BTM counterpart?
What is Front-of-Meter (FTM) Energy Storage?
While Behind-the-Meter (BTM) refers to infrastructure and energy activities located on the customer side of the utility meter, often managed by the customer or station operator, Front-of-Meter (FTM) is everything on the utility side of the meter. This includes the utility-side distribution system grid infrastructure like transformers, feeders, and substations.
FTM energy storage systems are typically larger, centralized batteries or other stationary energy storage technologies placed within the utility’s distribution or transmission system. They are managed by the utility and are designed to provide services to the broader grid and all connected customers. This is in contrast to BTM systems, which are on the customer’s property, managed by the customer, and primarily serve that customer’s energy needs or help reduce their grid-related costs, such as managing demand charges.
Think of it this way: a BTM battery might help a homeowner with solar power use more of their self-generated energy or provide backup during an outage. An FTM battery, however, is a large asset integrated directly into the utility network, providing benefits that span across many customers and support the fundamental operation of the grid itself.
FTM storage acts as a flexible & responsive asset for the utility, helping to manage the complexities of a modern grid that is increasingly reliant on variable renewable sources & subject to various disruptions.
Why is FTM Energy Storage Important?
FTM energy storage is increasingly vital for ensuring a reliable, resilient, and efficient electric grid, especially as we integrate more variable renewable energy sources like wind and solar power. Here are some key reasons for its importance, as highlighted by the sources:
3 Main Applications for FTM:
1. Grid services – this is everything you have for “Providing Crucial Grid Services”
2. Renewable energy integration – The intermittent nature of renewable energy sources like solar and wind presents a significant challenge to grid operators. FTM storage is a key enabler of their widespread integration:
- Renewable Energy Time-Shifting and Firming: FTM systems can store excess renewable generation when it is abundant (e.g., during sunny or windy periods) and dispatch it when demand is high or generation is low. This “firming” of the variable output makes renewable energy a more reliable and dispatchable resource.
- Curtailment Reduction: Without storage, excess renewable energy that cannot be immediately used is often “curtailed” or wasted. FTM storage captures this otherwise lost energy, maximizing the output of renewable assets and reducing clean energy waste.
3. Economic optimization –
- Energy Arbitrage: FTM operators can capitalize on electricity price differentials by charging the storage system when prices are low (typically overnight) and selling the stored energy back to the grid when prices are high (during peak demand).
- Peak Demand Management: By discharging during periods of peak electricity demand, FTM storage can reduce the reliance on expensive and often less efficient “peaker” power plants, leading to lower overall system costs.
- Transmission and Distribution (T&D) Deferral: In areas with growing electricity demand, FTM storage can be deployed to alleviate congestion on transmission and distribution lines. This can defer or even eliminate the need for costly and time-consuming infrastructure upgrades, providing a more flexible and targeted solution.
- Providing Crucial Grid Services: FTM storage systems can provide a wide range of services essential for stable grid operation:
- Frequency Regulation: Helping to maintain grid frequency within required standards by quickly adjusting power output.
- Voltage Support: Helping grid operators maintain voltage within specified limits.
- Operating Reserves: Providing capacity that can be called upon when normal supply resources are unavailable.
- Load Following/Ramping Support: Quickly injecting or absorbing power to follow load changes and support renewables.
- Black Start: Providing the external power needed for generators to come back online after a blackout.
- Transmission/Distribution Upgrade Deferral: Delaying or avoiding investments in transmission or distribution system upgrades by managing load or time-shifting energy.
- Transmission Congestion Relief: Helping to alleviate congestion on transmission lines by time-shifting energy.
In essence, FTM storage acts as a flexible and responsive asset for the utility, helping to manage the complexities of a modern grid that is increasingly reliant on variable renewable sources and subject to various disruptions. Technologies typically used for FTM applications include large lithium battery systems, sodium-based batteries, flow batteries, pumped storage hydropower (PSH), and compressed air energy storage (CAES), with certain systems offering advantages with respect to long-duration capabilities.
As the demand for electricity grows and the grid continues to evolve, the strategic deployment of energy storage technology will be crucial for maintaining reliability, increasing resilience, and effectively integrating cleaner energy resources for the benefit of all customers.