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An assured power supply is of paramount importance for industries, and the quality of that power is very important. With automation, sophistication and precision dominating industrial activities, power outages and inconsistent power quality could not only impair manufacturing activities but also damage critical assets and put people managing them at risk.

Industries are keenly aware that most electricity distribution companies have differential tariff for energy consumption at different point of time in a day. When tariffs are at their peak, industries need to have an alternate source of energy to meet their power demand, and avoid punitive costs for their consumption. An independent energy source that avoids the need to shut down operations or load shed can be a cost saving investment.

An ESS could be a perfect answer to the above situation. In-addition, the energy storage solution could be an alternate revenue model for industries as governments globally are aggressively promoting non-conventional energy and often offer fiscal & tax incentives to independent power suppliers.

Energy storage manages power such that peak demand charges are reduced or avoided entirely. This opportunity exists because utility tariffs for commercial electricity end-users – especially those with power requirements that exceed 50 to 100 kW – include separate charges for energy and power. Power-related demand charges are assessed based on the end-user’s maximum power draw (demand) during specified demand periods. By using an ESS industrial users could manage the demand charges in a prudent way - such that penal demand charges could be avoided.

An ESS will also minimize the use of DG sets to meet peak power demand. This in itself saves on fuel costs but also contributes to environmental goals of minimizing emissions and noise pollution.