Transition to renewable energy is recognized as a vital step in decarbonization. However, renewables offer us an intermittent supply, quite different from the nonstop nature of supply from fossil sources. Therefore, to transition successfully, we must surmount the challenges of balancing supply and demand. When we source power from renewable origins, the peaks and troughs in energy generation differ greatly from the pattern of consumption.
We need energy storage to bridge the gap between disparate levels of energy supply and demand at specific times of day. For example, at noon solar PV energy production is at its peak, and at nighttime there is none. The energy consumption curve can be diametrically opposite: peak demand occurs in the evening and early morning, whereas demand is low at noon.
When we understand that energy storage is key in enabling supply to match consumption, then it’s a small step to realizing its significance in reaching our climate targets. To decarbonize adequately, it is vital for society to take the giant step of implementing energy storage at multi-gigawatt scale. Only this volume of storage is capable of enabling a renewables-based grid to deliver supply reliable enough to match the stability of a traditional fossil-fuel-based grid.
At Danfoss Drives, we're committed to supporting the green transition. One major challenge for our customers is managing the integration of different energy generators and storage systems into a single grid. This can lead to power quality issues and grid instability. That’s why we at Danfoss Drivees offer efficient power converters to combat inconsistencies and ensure a stable and reliable grid supply.
Danfoss technology is a proven enabler in consistent power supply and grid-friendly solutions. We supply a wide range of products to support your energy storage offering. Danfoss delivers grid-friendly power conversion solutions with impressive energy efficiency, specifically designed for energy storage solutions.
With low harmonic distortion, adjustable power factor, and other grid-friendly features, support from Danfoss solutions ensures that the power supply is competitive and grid-compliant. Long experience in power conversion for energy storage solutions, combined with a leading position in the world, means that Danfoss is your ideal partner when investing in energy storage technology.
Want to learn more about how power conversion solutions from Danfoss can help you ensure grid stability and compliance while reducing CAPEX?
Energy storage systems capture surplus energy generated during periods of low demand or high availability of solar power and wind power - or other renewable energy source - and store it for future use. Energy storage is a key factor in the energy security of distributed networks, as it secures access to energy sources on a timely, sustainable and affordable basis. Energy can be stored in different forms, including electrical energy in battery energy storage systems or capacitors, mechanical energy in flywheels or pumped hydro storage, lithium-ion batteries, thermal storage, flow battery, or compressed air energy storage.
Stored energy can be put to work when electricity demand often exceeds supply or during peak periods, providing additional power or services to the grid or specific applications.
Smart grids with integrated energy storage facilitate energy supply time shift to overcome the intermittent nature of many renewable energy sources. The energy storage system can provide backup power in the event of energy scarcity from the supply, for example due to load shedding or unplanned blackout. During power-down, support from energy storage enables consumers to maintain operation for a period.
Use energy storage to stabilize power supply during unexpected irregularities. We can solve the problem at different levels of BTM applications. In this example, Industrial DC backup serves to ensure constant power supply to specific critical applications in a factory.
Energy storage battery systems can
Energy storage therefore provides businesses and utilities with competitive opportunities:
When integrating energy storage technology and diverse energy sources into the distributed grid, intelligent power conversion solutions from Danfoss improve grid performance and reduce capital investment requirements, thanks to pre-certified compliance with stringent grid codes.
This Norwegian ferry route uses intelligent management of energy and battery storage systems to optimize fast charging and reduce carbon footprint.
Decarbonization means we will consume much more electrical energy in future, in all sectors. In total, we need 200-300% more energy to flow through electric energy infrastructure, and the transport sector is a significant contributor to this demand.
Despite our decarbonization ambitions, we must accept that the grid infrastructure we have today is not yet dimensioned for the need of future EV and truck chargers. With increasing demand at peak periods, the stability of vehicle charging is limited by the capacity of the local transformer. To ensure stability, use an energy storage system to support the grid during peak demand. For the grid owner, energy storage is a better choice than the alternative mitigation solution: to increase capacity of the transmission lines.
What are the benefits of mastering grid stability for reliable fast charging?
DC grids offer several benefits over traditional AC grids. They are more efficient and use less copper. Additionally, DC grids are easier to operate, reducing the need for UPS capacity and allowing for the use of different types of batteries. They also minimize the impact of breakdowns, ensuring stable operation of servers and systems with reliable protection. Additionally, DC grids enable fast startup of backup power generators. Energy storage systems (ESS) using power converters from Danfoss enhance your DC grid with these benefits:
The modularity of DC grids shortens installation and commissioning time, provides flexibility for capacity expansion, and saves space. Furthermore, they harmonize the integration of all drives in the DC system, including chillers, fans, and pumps, through centralized AFE supply, resulting in a total harmonic distortion (THDI) of less than 5%.
When a large number of power converters are connected to a DC grid, it is necessary to conduct short circuit studies. Danfoss DCGuard facilitates fast disconnection and full selectivity between multiple DC grids, providing semiconductor protection that detects and cuts off faulty DC currents within microseconds. This ensures stability of the DC grid, protects surrounding equipment, and allows uninterrupted operation. The device also enables correct system selectivity, prevents overvoltage spikes at current cut-off, and can connect two different DC grids with voltage differences.
DCGuard allows for simulation of short circuits and selectivity studies, with the ability to place short circuits at different points in the DC grid and study the behavior of converters, bus bars, and fuses. Simulations provide automated reports with information about the short circuit current schematics.
In maritime applications, battery energy storage is ideal for powering propulsion over shorter distances, whereas green fuels (methanol, compressed hydrogen, liquid hydrogen or ammonia-based fuel cells) are suitable for longer voyages. Combining these technologies extends the ship's range. Fuel cells can drive propulsion but cannot store excess energy, which can instead be stored in a battery energy storage system, preventing waste. This integration presents a promising solution for the future of the shipping industry.
How do energy storage systems benefit the marine industry? To learn more, read the whitepaper.
Read the whitepaper
While an energy storage system is important onboard vessels, it is also highly relevant for onshore applications such as shore power.
Shore power, also known as cold-ironing, is the process of providing electrical power from the shore to a ship while docked, thereby allowing a ship’s auxiliary engines to be turned off and the burning of diesel fuel to cease. It has one purpose: to bring power from the national power grid (or a local grid) to berthed vessels, rendering diesel powered generators unnecessary. The evidence in favor of shore power is overwhelming. For example, when a vessel is connected to shore power, overall pollutant emissions can be reduced by up to 98% when utilizing power from the regional electricity grid.
For ports, shore supply is not only about decarbonization, but also about elimination of air pollution (NOx, SOx, particulate matter) and noise while vessels are berthed.
What are the opportunities for using energy storage technologies, including battery energy storage, within shore supply? Find them in the whitepaper: “Decarbonizing the shipping industry”.
Danfoss aims to achieve long-term value creation by decarbonization with our customers. We prioritize and deliver on these values common to societies operating liberalized energy systems:
At Danfoss, we help you think beyond the system itself. By taking a holistic perspective on the entire ecosystem, we secure energy efficiency and system effectiveness that is both scalable and economically viable. With extensive expertise in energy storage systems (ESS), we have the right solutions to match your specific energy storage needs. That way you get a plug-and-play system with maximum performance that evolves alongside your operations, at your pace. Danfoss technology has been developed and refined to deliver future-proof, guaranteed performance with many added features to lower risk and ensure a stable operation. You achieve a grid-friendly, approved energy storage solution with impressive energy efficiency.
Coupled with state-of-the-art test facilities and an inherent engineering mindset, our employees are always eager to share their knowledge to find the best solution to the challenge at hand. Our application know-how high quality solutions for energy storage systems (ESS), adheres to the highest international standards in production and development quality. We enable you to secure a consistent energy supply, improve your grid performance and enable an improved grid reliability, using energy storage solutions.
Using power back-up, Danfoss offers flexible targeted battery-based industrial DC backup solutions which direct power supply to the most critical loads. This means you can size the batteries in the energy storage system to the critical loads. These solutions support a combination of different energy storages to ensure a stable power supply when the national grid is unreliable. This enables you to use the energy storage as the redundant power source. Learn more about our Industrial DC backup to avoid voltage dips: Industrial DC backup ensures no more voltage dips | Danfoss
Use simulation tools to develop, design, predict and test performance without the cost of prototyping. Simulation makes your power converter environment more flexible and responsive, helping you bring products to market faster and gain a competitive edge. In order to implement the volume of energy storage we need, it is essential to use simulation tools. Simulation is an effective method to study how faults arise, how equipment responds to these faults, and how faults can be resolved. Use simulation to optimize how energy storage interacts with the grid and the application to ensure optimal use of peak shaving, time shift and backup capabilities - as well as ensuring maximum efficiency.
Simulation tools are a useful shortcut to optimizing equipment sizing, to minimize capital investment and also Scope 1,2, and 3 emissions. Furthermore, simulation empowers businesses to perform “virtual learning iterations”. In our case, these iterations improve effectiveness of communications between Danfoss experts and our customers, allowing us to respond faster on project requirements.
Before connecting an energy storage system to the local or national grid, both the power plant owner and the transmission grid operator need to assess the system's response to grid faults and contingencies. The power plant owner is interested in how the plant functions with power converters, while the transmission system operator wants to know how the system handles low/high grid voltage, provides grid support, and can be utilized for frequency containment and fast frequency reserves.
Danfoss offers simulations using functional mockup units (FMUs) of the power converter to simulate grid interactions. FMUs generated from controls and application software can be used in PSCAD and DigSilent Power factory environments, facilitating the modeling of whole power plants. This approach ensures Danfoss power converters meet AC grid requirements. Partnering with Danfoss gives access to FMU-compliant models of the power converters for PSCAD and DigSilent, allowing the grid operator to evaluate network operation in their simulation environment, effectively.
Danfoss continuously develops these interfaces and models and offers power converters which can be used to collect data for learning processes. Learn more about simulation offerings from Danfoss
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A critical component in energy storage is security of the system against unauthorized access. Unique hardware-based security from Danfoss reduces the risk of cyber-attacks using a hardware crypto chip, protected firmware, and encrypted data transfers. All these benefits make it easier for you to secure your systems, your energy storage system, and your data, giving you a secure component you can rely on.
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These actors in the energy sector represent different interests behind-the-meter and front-of-the-meter, and therefore, implementation of energy storage differs for each.
Energy consumers
In the power transmission grid, energy storage plays the role of an independent storage unit for managing arbitrage: the storage unit can charge when the energy is cheap and discharge when energy is expensive.
At the point of energy consumption (demand side), energy storage
Energy storage systems can be used throughout the network, both in front of the energy meter (FTM), and behind the energy meter (BTM). The meter is the “border” between where the grid is owned by the grid operator, and where the consumer owns the grid (inside a factory, or simply in a private home).
BTM (Behind-the-meter) encompasses the consumer sectors
Front-of-the-meter (FTM) sectors comprise
The FTM infrastructure is dimensioned to meet the peak demand load of the year, which might occur for example on the coldest or hottest day.
Behind the meter, energy storage is relevant on the demand side, in commercial and industry (C&I) + residential applications. In front of the meter, energy storage serves energy generation and grid infrastructure applications. At Danfoss, our experts are trained in both Behind the Meter (BTM) for commercial and industrial applications, as well as for Front-of-the-meter (FTM) networks, and can advise you on the best approach to both application types.
In a traditional energy market, the electricity network comprises two players. The first player is the sole owner and manager of the power generation plant and transmission network.
The second player is the consumer, a factory or homeowner who owns the local microgrid on his own premises.
The split between the two occurs at the energy meter. In front of the meter (FTM) are the generator and transmitter. Behind the meter (BTM) is the consumer.
However, the energy market has rapidly evolved since the 1990s and today, many countries operate a liberalized energy market.
In a liberalized market, separate companies own the energy production and transmission network, respectively. FTM is divided in two groups of actors: the grid operator who has a monopoly on transmission infrastructure, and the energy generators who operate in a free market.
We have explained why energy storage is essential in establishing renewables as the dominant source in the power supply: Energy storage overcomes disparity between energy supply and demand at varying times throughout the day.
But not only does energy storage support a sustainable-based power supply for decarbonization. Energy storage also facilitates a prosperous modern lifestyle with the convenience of mobility in the form of electric trucks, electric vessels, accessories like battery-powered laptops, and personal forms of transport such as electric vehicles and bicycles. Society cannot imagine doing without these conveniences and will not be motivated to decarbonize, if they cease to be available.
Without storage, it’s not possible to maintain prosperity and energy security in society. Without storage, our only alternative is fossil-fuel-based power, such as gas-powered generation and petrol-powered transport. Society already knows from long experience that a fossil-fuel-based power supply requires import across borders, leaving nations vulnerable to energy security risks. Neither does fossil-based supply support the decarbonization we need to fighting climate change while still maintaining a prosperous convenient lifestyle.
By ensuring flexible, reliable, and clean energy solutions, energy storage plays a crucial role in enabling the transition to a more sustainable, resilient, and efficient energy system. Energy storage enhances the grid in flexibility, reliability, and power quality:
Flexibility in power supply, so if there is an outage or other unplanned event, we can quickly transfer to an alternative energy source.
Enhanced grid reliability in distributed networks, so power is always available for critical infrastructure such as hospitals or water supply.
Enhanced power quality for a clean grid, free of distortion and disturbances.
We use energy storage to bridge the gap between intermittent energy production and consumption. However, when implementing energy storage, it’s not enough to establish adequate power quantity. High power quality is also essential to ensure that the distributed network remains stable and efficient for both grid following and grid forming. To ensure an acceptable voltage quality, all parties in a renewable network must share the burden. This burden is normally shared with the use of grid code in a large power system, or so-called nationwide grids. Danfoss supports network stability and flexibility by offering both grid following control with grid codes as well as grid forming control modes.
For smaller grids, or intentional island grids, the same fundamentals must be in place. The grid must have an acceptable voltage quality, enough short circuit current, acceptable levels of harmonic and supra harmonic components. In addition, controllers in the network must not create instability. Some of the factors contributing to good power quality are:
Ensure harmonic distortion compliance in terms of total harmonic distortion (THD) levels, supra harmonics and short circuit injection.
Ensure the short circuit protection system functions reliably, when disconnected from the main grid. Simulation using the DigSilent Power Factory tool is used to investigate short circuit behavior for storage in existing networks.
The market and regulatory directions are trending towards power converters capable of grid forming
Smart grids with integrated energy storage facilitate energy supply time shift to overcome the intermittent nature of electricity generation from many renewable energy sources. The energy storage system can provide backup power in the event of energy scarcity from the supply, for example due to load shedding or unplanned blackout.
Battery energy storage systems introduce alternative power sources to the distributed grid, or an industrial or maritime DC grid. In over-supply situations, the system can direct energy toward storage. When demand levels are high, the storage medium can be accessed to provide an additional source of energy to
The intermittent nature of renewable sources underscores the value of integrating them with storage solutions. By combining renewable energy with energy storage, the grid can perceive the power plant as a consistent power source throughout the day. The energy storage can also deliver ancillary services.
Energy storage can effectively alleviate grid congestion, such as by enabling smoother (n-1) dimensioning. Furthermore, energy storage can enhance grid stability by supporting frequency regulation or voltage control. Additionally, energy storage opens the door to opportunities for revenue generation through arbitrage, which involves purchasing energy during times of low prices and selling it when prices are high.
That’s not all. Energy storage also facilities many other revenue stream opportunities, such as:
Operators of battery energy storage systems (BESS) can generate the best revenue by “value stacking”, meaning connecting to several revenue streams.
Energy storage revenue streams for FTM
Energy storage revenue streams for BTM
Smart grids with integrated energy storage facilitate energy supply time shift to overcome the intermittent nature of many renewable energy sources.See how in this animation
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Energy storage systems not only stabilize grid fluctuations but also serve as backup power sources during energy scarcity or blackout events – either due to load shedding or unplanned events. Drawing upon energy storage systems in the event of unreliable supply or power outage ensures
In a decentralized grid system, the fluctuations in energy supply and consumption often lead to peaks in energy production and troughs in power levels. These variations are typical for solar and wind power. Energy storage solutions help to stabilize these fluctuations, allowing the grid to operate consistently at the average power demand, which is typically lower than the peak levels. Designers can downscale equipment to lower ratings to cope with regular loads, which in turn reduces the level of capital investment required.
Time shifting redistributes energy to optimize cost, by storing energy during times when energy costs from the grid are low and extracting energy from the storage medium when energy costs are high. Storage can be combined with green fuels such as hydrogen, e-ammonia and e-methanol, so they can run at full power and store excess energy to battery.
Using an energy storage system connected to intelligent system management, the stored energy can be used or sold later by arbitrage, at the optimal time when the electricity price (or cost) is high. This strategy of exploiting the price difference is known as arbitrage.
Learn how smart operation including energy storage ensures flexible power and energy consumption at Flexheat in Copenhagen, Denmark.
Learn more about peak shaving, time shifting and back-up power: Intelligent power conversion for smart grids | Danfoss