Are smart UPS combined with storage systems the best approach in financial terms as we approach the transfer to alternative energy sources?

In December 2020, the EU member states agreed to reduce greenhouse gas emissions from within the EU by no less than 55 % – by contrast with the previously planned figure of 40 % – relative to the 1990 figure.^*1 For this purpose, the EU Commission plans to present a range of legislative proposals, in 2021 for the adaptation of the EU climate and energy regulations currently in place.
In this context, the European Green Deal (abbreviation: EGD) stands as a core project with a comprehensive growth strategy for a climate-neutral economy, thrifty with resources, by 2050. This would make the EU the World’s leading industrial region in terms of climate neutrality.
The achievement of this ambitious climate protection goal will be dependent firstly on the continuous transition from fossil fuel driven power generation towards regenerative energy sources and, secondly, on a significant optimisation of power draw and consumption on the part of Trade and Industry.

Functions of energy storage systems in the fields of grid services, renewable energy sources and applications in industry

Making use of the potential offered by storage technology

The required progress in the establishment and expansion of regenerative energy production will give rise to fluctuations, whose magnitude cannot be predicted, in terms of energy feed. Energy stores provide a greatly needed degree of flexibility in terms of the smoothing out of loads, in combination with efficient load management, and these stores have a significant contribution to make to the definable smoothing-out of the load curve within the grid. They mean that the extremes are rounded off, and that goes for load peaks and surplus energy spikes.

Sustainably reducing the cost of operation

Hybrid UPS storage systems are now available. They are essential hardware in financial terms, as companies approach the transfer to alternative energy sources. These are multifunctional systems which can be incorporated, with appropriate communications interfaces, into EMS’s (Energy Management Systems) that are already available.

This is a field where self-managed UPS storage systems with “island operation capability” offer significant advantages. At all times – irre­spective of ongoing load management functions, such as peak shaving, load levelling or the optimisation of power draw – they assure continued operation for the connected critical supplies in the event of any disruption to the grid.
Smart load management for these hybrid systems offers the simultaneous combination of enhanced reliability and efficiency of power supply with a sustained reduction in operating costs. This technology is ideal for use in all applications where the supply of power from storage systems can be partially or fully deferred in chronological terms.

Rapid break-even on investment costs – thanks to a combined approach

In BENNING’s new ENERTRONIC modular Storage range, it offers individually customised energy storage systems with true UPS function and “on-board” EMS. This smart system is designed for:

• Industrial applications
• Storage of regeneratively produced power
• Micro grids

UPS functionality protects critical supplies from any disruptions on the grid. At the same time, the system – in conjunction with “on-board” EMS – covers load management functions, thus making a significant contribution to a quicker break-even time on investment (by comparison with systems lacking any storage functionality).

ENERTRONIC modular Storage covers load management functions such as peak shaving and load levelling

Single-source turnkey products

On the basis of tried & tested industrial UPS systems, BENNING offers a modular architecture for the construction of cost-effective energy storage systems both for network-controlled and for self-managed plant.

They cover an output range of up to one megawatt per supply point. Moreover, it is possible to install larger systems, with further supply points, within the same common grid.
This decentralised scaling enables optimised, cost-effective integration into an existing infrastructure. And it is also possible to upgrade or to retrofit existing energy storage systems with modular UPS tech to produce smart power supply systems with island operation capability.

Where BENNING supplies a turnkey solution, it regards its role not merely as the manufacturer of hardware but as a system integrator characterised by partnership. Consequently, the projects described below illustrate not only the technical & financial aspects but also the consultation, planning & development services that will be entailed in successfully meeting the range of customers’ specific needs

With all of this in mind, PN was able to meet up with Mr Ronald Metzig (Head of Office East, BENNING) and Mr Claus Kirmaier (Head of Office South, BENNING).

Mr Metzig has completed the planning & implementation of a li-on battery storage system (320 kVA / 300 kWh) with UPS capability for an industry customer, specifically: a global automotive supplier with several sites in Germany.

PN: Mr Metzig, before we specifically talk about your project, could you tell us something about the general market situation concerning storage systems with UPS capability?

Metzig: Given the challenges which companies face in connection with the energy transition, there is currently very keen interest in UPS storage systems. Our customers are aware of the advantages of a hybrid system which enhances safety for sensitive consumers and which – in parallel – provides buffer storage of one’s own generated power, so that it can be made available on a flexible basis. And the considerations with regard to reducing energy costs – for example by reducing peak loads – are also significant when it comes to the rapid charging of electric vehicles.

We are currently finding that many companies are taking the crisis as the ideal time to set themselves up to meet the future. In most cases, this will include establishing an environmentally-friendly power supply system, typically one which is based on a storage system with UPS capability.

PN: Where you refer to considerations: what was the leading motivation, with specific reference to this automotive supplier?

Metzig: The answers to that question are to be found in a project entitled “Energy storage systems for managing peak loads (peak shaving) to adhere to the 7000-hour rule”. By definition, the operating hours count, which can be described as the quotient derived from annual energy consumption (> 10 GWh) and the highest load peak which occurs in the integral of 15 minutes, is greater than 7000 hours. Compliance with that rule is the prerequisite for achieving an individual network charge corresponding to “Strom NEV” – the electricity grid charges regulations (refer §19, paragraph 2) – in other words a considerable reduction in network charges for energy-intensive industries – to a maximum of 20 % of the standard rate. Depending on the corresponding processes, production may give rise to load peaks extending to a quotient < 7000 hours. Bearing in mind that the reimbursement of the network charge relates to the whole year. In other words, the duties of the UPS storage system include its having to cap the function of these peak loads: “peak shaving”.

PN: But load management in itself is nothing new. Is it of crucial financial significance to large-scale consumers?

Metzig: That is correct, in principle. As a rule, however, efforts are made to compensate for the encountered load peaks by temporarily switching supplies off, or by delaying their switch-on. Consequently, this mode of load management has tremendous repercussions on production processes. That being the case, it increasingly gave rise to problems for our customers. Consequently, an attractive solution appeared to be to invest in an energy storage system. Given the relatively high costs of investment for storage systems, it is becoming increasingly necessary to resort to “multi-use applications” in order to operate storage systems economically. In addition to conventional peak shaving, this includes buffer storage of regenerative power or a standby capability.

PN: How was the customer’s attention drawn to the solution developed by BENNING?

Metzig: BENNING’s ENERTRONIC modular Storage system with UPS capability gives it a unique benefit which ensures its market profile. And we already had business connections with the parent company. This is a context where BENNING is well-regarded as a versatile turnkey provider specialising in complex, high-availability power supply systems. But the current project was the first one to have been installed at that site, in Saxony.

PN: How was the project approached, and exactly what did the customer receive?

Metzig: At the end of 2018, the initial outline concepts were discussed, followed by a budget quotation in the first quarter of 2019. By the end of 2019, we received the order, once everything had been analysed and the technical details had been sorted out. It was in the summer of 2020 that we completed the project work, production, supply, commissioning and trial run. Our service department has a 320 kVA ENERTRONIC modular Storage system installed on site with the customer, and equipped with eight 40-kVA modules (expandable to ten modules), a supply connection panel compliant with VDE AR-N 4105, a DC connection and communications panel, together with 10 battery cabinets whose energy capacity comes to a total of 300 kWh.
The ENERTRONIC modular Storage system is based on hardware tried & tested on the industrial UPS marketplace. It offers excellent linear peak shaving over the entire load range, and comes with the UPS functionality required in order to protect critical supplies.

PN: In retrospect, what were the particular challenges, and what were the requirements imposed by the customer that meant it was you that won the order?

Metzig: The energy storage system needed to be integrated into the company’s existing infrastructure with – of course – the lowest possible overheads. Consequently, technical criteria dictated just one solution: the Company’s own transformer station, for the installation and integration of the system. The grid structure in place meant that it was ideal to apply connection directly to the low-voltage supply, especially as this is a functionality that comes with the ENERTRONIC modular Storage product. Installation in the switchgear room was not really an option for the customer. The available separate room needed a very compact layout, since the system had to be designed with flexible scalability, to cover the eventuality of any possible adaptations to power capacity. From the outset, thanks to the modular architecture and the advantageously small footprint characterising the ENERTRONIC modular Storage system, we were able to offer ideal solutions, which were very cost-effective. And we imagine that our range of “soft skills” – starting with active customer consultation, passing through the design and interface planning stages and culminating in turnkey handover (conducted by our service department) – all helped to win the day.

PN: Commissioning took place quite a while back. Has there been any feedback from the customer concerning the system’s ongoing operation?

Metzig: For the customer’s parent group, this plant represents something of a pilot project. Now, we have received enquiries for similar storage systems with UPS capability for further locations. I believe that this proves that active peak load management is regarded as being highly valuable in financial terms, especially in conjunction with the UPS functionality as supplied by BENNING.
Our customer is aware that in the near future it will have to face up to further challenges associated with the energy transition, such as the capability to incorporate sustainable energy sources, electrical mobility and enhanced energy efficiency in parallel with the assurance of uninterruptible power supplies for its processes critical to operation at all of its sites. In Saxony, at any rate, it has already set up the optimum conditions for that investment.

PN: We are very glad to hear that, of course. Finally, could you venture to share with us a look into the future? How do you think the market for such systems is going to develop in the future?

Metzig: It goes without saying that this is dependent on a wide range of factors. However, we can foresee that our UPS capability storage systems – fulfilling UPS classification criterion VFI-SS-111 – will be carving out a whole new market segment for themselves. They are markedly more cost-effective than other known applications. And we can imagine, given the major cost/benefit advantages, that in a great number of fields of industry, the marketplace for conventional energy storage systems is going to merge with the UPS systems marketplace.

PN: Many thanks, Mr Metzig, for the interesting insight you’ve shared with us with regard to this leading-edge project.

Further information

contact: Ronald Metzig
telephone: +49 172 2859286
e-mail: r.metzig@benning.de

For Biogas Gröber Ruf GmbH & Co. KG, a producer of regenerative power in Fuchstal, southern Germany, Mr Kirmaier was responsible for completing a turnkey UPS storage solution (160 kVA / 462 kWh).

_{*1 https://www.bmu.de/en/topics/climate-adaptation/climate-protection/eu-climate-policy/}