A few months ago, I posted a blog article on new trends with battery power, including a description of Massachusetts’ latest energy efficiency plan – the first in the nation – which encourages energy efficiency funds to be used for energy storage projects that reduce peak demand, and otherwise encourage the implementation of batteries to store power at a facility.

There has been some criticism of this part of the plan since it was issued. There is no question that batteries are beneficial to reduce peak demand on a grid, to steady the unsteady generation of solar and wind power, to have as a backup in case of a horrendous storm. However, batteries are also inherently inefficient energy-wise. In the process of gathering, storing, and then releasing power, some electricity is lost. Therefore, for every kilowatt-hour of electricity stored in a battery, more electricity must be generated in the first place. Of course, if this electricity is generated from renewable sources, there is no additional cost (no fuel to obtain) and no GHG emissions.

Therefore, batteries are no help for energy efficiency and GHG emission reduction goals, except in the context of solar and wind technologies. An office complex utilizing battery storage will, by itself, not cause less electricity used for the lights, computers, elevators, AC, etc.

Nobody can argue that battery storage can help make the grid more reliable in case of very high peak demand and storm damage. While Massachusetts is unique in encouraging battery development and implementation, other organizations believe the first and perhaps only priority should be in energy efficiency and reducing demand for energy, while growing the economy.

Supporters of battery storage argue that encouraging usage will help maximize the benefits of solar and wind generation, encouraging more clean power nationwide displacing dirtier fossil fuel-generated power, including peaker plants or fuel-generated plants that operate in conjunction with solar and wind plants.

Therefore, the Massachusetts program should be read as a program to encourage smart energy “management”, rather than for efficiency alone. States and nations need to move toward better energy management, which is not only efficiency, but operations and reliability, as well.

CCES has the experts to help your firm or entity manage your energy better, a growing issue as energy costs rise faster than inflation. Whether it is battery power, renewable power, or just being more efficient to be “green” and save costs, CCES can help you reach your goals and save costs. Contact us today at 914-584-6720 or at karell@CCESworld.com.