A home battery might be called “smart” because it connects to an app that allows the home owner to track their usage. But wait, what if there’s more? Let’s take a look at how you can make a battery smarter by connecting it to external inputs such as daily energy prices and weather. This can lower the pressure on the grid by reducing the peak usage, and when switching to a dynamic pricing contract this can also save you money. In this blogpost we demonstrate a system that can save up to 35% on electricity costs.
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The simulation tool described in this blogpost can be used by everyone. Go to https://smartenergy.ml6.eu/ to test out our tool by running a simulation on your own data.
A typical home battery will be charged when a household produces more energy than it consumes, e.g. when solar panels are producing electricity. The battery will then be used when there is enough load available to replace the direct consumption from the grid. We will demonstrate that if you switch to a dynamic pricing contract, you can save money by proactively charging a battery from the grid at a time of low energy cost instead of consuming directly from the grid when energy prices are high.
This article will explain what dynamic pricing is, it will show an overview of how you can build a smart controller to communicate with the inverter of a battery and steer its behaviour and it will demonstrate with a simulation how this technology can save money.
In different countries in Europe energy providers are now making available dynamic prices on the private market. For this blogpost we are focussing on the Belgium market. As of October , the largest electricity providers in Belgium are by law obligated to offer a dynamic pricing contract. Dynamic contracts are contracts where the price is determined per hour. Prices are set on the previous day and are determined based on the prediction for the next day for the electricity production and consumption. The reason that this contract exists is because of the green transition and the intermittency of renewable energy sources. This way individuals or companies can adapt their energy usage based on the price, which corresponds to matching their consumption to when there is high production of electricity from the sun and the wind and/or low consumption. This will lower the pressure on the grid by reducing the peak usage.
Do you consume electricity during a certain time of the day? Then you pay the price of that hour. A dynamic contract is only possible if you have a digital meter. This type of contract is mostly interesting if you are able to adapt your electricity consumption based on these prices. A classic example is to charge an electric car when prices are low or to charge a home battery (as explained here). In this article a dynamic pricing contract of Engie will be used to run our calculations and simulation.
Some key observations from analysing the day ahead prices from are:
The most essential parts of the architecture are:
The inverter client and the controller will be explained in more detail to understand further how the whole setup works.
Inverters are a part of any modern solar setup. Their main function is to convert the direct current (DC) coming from the solar cells into alternating current (AC) which can be used by most household appliances. When a battery is part of the system the inverter is able to store the energy that is not being consumed in the battery. Inversely it can use the energy stored in the battery to help power the household grid.
This system makes decisions based on the current production and consumption of energy but this can be improved by making it smarter. For this we needed to be able to do 2 things:
Our test setup has a Sofar inverter with a battery and solar panels. We needed a way to communicate with this system and came across this guide to build a small piece of hardware.
In essence it is a microcontroller that is wired to the inverter and uses the modbus protocol to communicate with the inverter. The microcontroller is also connected to a message bus (MQTT) where it can publish the metrics and listen for commands. This part of the setup is dependent on what kind of inverter you have and what communication methods it supports (some have wifi for example which makes this easier).
We then wrote a piece of code that was responsible for communicating with the microcontroller (and by extension the inverter). This inverter client was able to read the data published by the microcontroller and make it available to the controller while also listening for instructions coming from the microcontroller and passing those along to the microcontroller/inverter.
Important to note is that we don’t disrupt the way the inverter works since this can be very dangerous (like overcharging a battery). We only read data and give higher level commands that override the default decisions the inverter makes like “charge the battery for 15 minutes”.
The controller is responsible to process all the input and make a charging decision for the battery. Two controllers were implemented: one baseline controller with a simple charging strategy and one smart controller that applies a more dynamic cost saving strategy.
The baseline controller only has one rule: to charge the battery between 1:00 and 6:00 in the morning because this is historically the cheapest moment of the day to charge the battery. This is used as a baseline to compare with the smart controller.
The smart controller on the other hand will look at two data inputs to decide the charging strategy: the current percentage of the battery and the cheapest moments for charging in the next hours. If the battery level is low, it will charge in the cheapest moment of the next hours. The higher the battery level the more patience it has to pick the most ideal charging moment.
In order to calculate the impact of our setup, we built a simulator because the setup didn’t gather enough data yet.
To test how well the setup works, a simulator was included that can simulate different scenarios based on extracted consumption data per 15min from a smart meter from Fluvius. The following scenarios are supported:
The simulator works with the exact same controller and entso-e client used in our real-time architecture. There is a simulated inverter implemented to simulate the energy usage based on the consumption and the actions decided by the controller.
A dashboard was created to show the different results from the simulations to allow a user to compare the energy consumption as is today with a scenario where the user has a smart battery. We tested our simulation for 5 different households with a battery of 10 kWh and the average cost saving is around 35%. This is a very nice first result, but of course this should be further validated by testing the real-time solution and by actually switching to a dynamic pricing contract.
Do you want to try it out yourself? Go to https://smartenergy.ml6.eu/ to test out our tool on your own data.
One challenge in this project was to find out all the details about the dynamic pricing and to make an accurate estimation of which costs there are. This is quite hidden and not a lot of energy providers offer this kind of contract. We learned a lot about the current offerings and limitations. With Engie, they offer information about it on their website, but up until recently it was not so easy to switch to this contract. De Standaard mentions that Engie had less than 200 clients using this contract in . In the end we have a good understanding of how the market works today.
One challenge for the future is that we cannot predict how the dynamic pricing contract will evolve, especially when the prices are fixed a day beforehand on the day ahead market. If more households switch to this contract it can be very beneficial because then the consumption will be more adapted to the capacity of the grid. So in the coming years it is expected that this will remain interesting. But if too many households would switch contracts and adapt their consumption then it might become a lot less interesting because the price would be more averaged out. So the biggest uncertainty for the future is whether the price fluctuations on the day ahead market will stay as interesting as they are now. It is however expected that flexibility on the production side is going to keep increasing and that it will probably outpace consumption-side flexibility in the coming years.
ML6 does research into new emerging technologies to investigate how AI can bring value to the market. This research project was part of our Xmas projects. Thanks to Matthias Feys, Georges Lorré, Julien Schuermans, James Branigan, Jules Van Reempts and Robbe Sneyders for contributing to this project and blogpost.
Xmas Projects are hackathon-like projects in which people lay down their day-to-day job for some time and get together out of common interest to explore new tools, learn tech and make an impact! Read more about it in this blogpost about Xmas projects.
Your industrial machinery needs reliable power. Custom battery packs offer impressive benefits over standard options, but the price difference makes many businesses hesitate. The right choice depends on your specific needs and long-term cost considerations.
Custom batteries shine when it comes to cold weather performance. Tests show custom sodium-ion batteries lose , while standard lithium-ion batteries drop 10% in the same conditions. This means more reliable power when temperatures plummet.less than 5% capacity at -20°C
The advantages don’t stop there. Custom batteries run 20% longer in cold conditions and charge 15% faster than standard options. LiFePO4 custom batteries last through - charging cycles – a huge improvement over standard batteries.
Your choice between custom and standard batteries will impact both today’s budget and tomorrow’s operating costs. This article breaks down the real costs and savings to help you pick the right power solution for your industrial needs.
The price tag on your battery solution tells only part of the story. Standard batteries look cheaper at first glance, but hidden costs can quickly add up. Your choice impacts both today’s budget and years of future expenses.
Standard batteries win the upfront cost battle thanks to and established supply chains. If you’re watching your immediate budget, standard batteries might seem like the obvious choice.mass production efficiencies
Custom battery packs cost more because they need extra engineering, testing, and development work. The price gap widens with lithium-based custom batteries – they typically cost more than standard NiCd or NiMH options. But don’t let the higher price scare you away. Custom solutions make financial sense when you need specific performance features or special compatibility.
Standard batteries hide several expensive secrets. Think you’re saving money? Look closer at these ongoing costs:
Standard batteries waste more power too. They’re only 75% efficient at charging, while lithium batteries hit 96%. That efficiency gap means higher power bills every month.
The math gets scary for big operations. Picture this: a facility running 10,000 wireless units with standard batteries needs about 30 battery changes every single day. That’s a lot of wasted time and money.
Material choices drive most custom battery costs – between 78% for LFP chemistry and 82% for NMC811 chemistry. Smart material choices and reducing waste can help control these expenses.
Want to save money? Get battery manufacturers involved early in your planning. They’ll help find cost-effective customization options that still deliver the performance you need.
Your specific needs affect costs too. Different industrial environments need different features. Do your homework – research your industry, watch component trends, and study material markets before committing to custom batteries.
The company is the world’s best Customized battery systems supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.
The final verdict comes down to total ownership cost. Custom batteries cost more upfront but often save money through longer life and lower operating costs. The key is matching the right battery to your specific needs.
The real value of your battery choice shows up months and years after installation. Custom batteries cost more upfront, but the savings add up fast when you look at daily operation costs.
Custom batteries work harder for every dollar you spend on electricity. Lithium-ion batteries turn into stored energy. Standard lead-acid batteries waste more power – they only convert 80% of charging energy, dropping to 57% efficiency from grid to equipment.98% of charging power
Think about what this means for your power bill. Custom batteries waste less energy as heat during charging and use. If you’re running multiple machines, especially where electricity costs run high, these savings multiply quickly. You’ll need less power to keep your equipment running.
Standard batteries demand constant attention:
The savings go beyond basic maintenance costs. Standard batteries bring workplace dangers like injuries, chemical burns, and toxic fumes. Custom sealed batteries eliminate these risks – and the insurance costs that come with them.
Standard lead-acid batteries give up after , but custom lithium-ion batteries keep going for 2,000 to 3,500 cycles or more.1,000 to 1,500 cycles
What does this mean for your bottom line? You’ll buy fewer replacement batteries with custom solutions. Some industrial custom batteries work for 20 years – compare that to standard batteries that quit after 2-3 years.
Custom batteries deliver steady power throughout their longer life too. Standard batteries slowly lose power over time, but custom batteries engineered for your specific needs maintain stable performance even in tough conditions. This reliable power means fewer disruptions and lower costs from downtime.
Money spent on batteries should come back to you through savings. Custom and standard batteries tell very different stories when it comes to return on investment.
Your custom battery investment starts paying off in 2-4 years. Heavy industrial use speeds up this timeline. Four main factors determine how fast you’ll see returns:
Custom lithium batteries handle , while lead-acid batteries quit after 1,000-1,500 cycles. Most industrial operations get 8 years from custom batteries instead of 4 years with standard options. Yes, first-year costs run higher, but savings pile up by year two or three as maintenance and replacement costs drop.2,000-3,500 charge cycles
Standard batteries come with built-in money drains. Lead-acid batteries eat 30% more power during charging than lithium options. Over 8 years, you’ll replace standard batteries twice – that’s double your equipment costs.
The hidden costs get worse. Standard batteries need longer charging times, forcing you to keep extra batteries on hand. These batteries spend more time charging and less time working. Switch to custom batteries and you’ll gain about 40 more working hours every year.
Want proof? Look at this factory’s 8-year study. They switched to custom lithium batteries and saved €1.91 million – that’s 56% less than they spent on standard lead-acid batteries.
The savings started small but grew fast year after year. The higher upfront cost for custom batteries? Paid back in full by year four. The factory didn’t need a bigger battery room anymore. Workers stopped spending time on battery maintenance and focused on real production work.
Your battery choice affects more than just today’s costs. The way batteries age and lose power tells an important financial story.
Batteries don’t just suddenly stop working – they slowly lose power through mechanical and chemical changes. These changes start small but speed up over time. The solid electrolyte layer grows first, then electrode damage follows from repeated use.
Temperature makes a huge difference in battery life. Cold weather hits batteries hard – some batteries lose so much power at -20°C that researchers couldn’t even test them. Custom batteries fight this problem with special cooling and heating systems that standard batteries don’t have.
Quick charging sounds great but comes with a price. Fast charging wears out batteries faster. Standard batteries lose about 4.45% of their power after cycles. Custom batteries handle more charging cycles without losing as much power.
Custom lithium batteries keep working long after their first job ends. After eight years or 160,000 km, they still hold 70% of their original power. This leftover power makes them perfect for other uses.
Standard lead-acid batteries tell a different story. They only last 500- cycles, leaving little power for other uses. Moving dead batteries to recycling centers costs between $5 and 30 cents per kg – another hidden expense.
Total Cost of Ownership (TCO) looks at every penny you’ll spend on your battery. This includes buying, replacing, dealing with temperature effects, and maintenance.
The purchase price makes up about 85% of battery costs in industrial settings. Custom lithium batteries cost more upfront but save money over time. They last 5-10 years instead of 3-5 years for lead-acid batteries, charge more efficiently (98% vs 80%), and need almost no maintenance.
Want to know when custom batteries pay for themselves? With today’s electricity prices, you’ll break even in about 4.1 years – maybe even 3.5 years with special power rates. Your actual timeline depends on how hard you use the batteries and where they work.
The numbers tell a clear story. Custom batteries cost more upfront but save serious money over time. Smart businesses look past the price tag to see the real value.
Here’s what makes custom batteries the better choice:
Your investment in custom batteries pays off fast – usually within 2-4 years. Real factories report saving up to 56% over eight years by switching to custom batteries. These savings come from cutting out maintenance work, using less power, and buying fewer replacement batteries.
Custom batteries keep working better, longer. Special cooling systems and tough designs mean they lose power more slowly than standard options. Plus, custom batteries hold enough power at retirement for other uses – standard batteries just become recycling headaches.
Want to make the smart choice for your business? Stop looking at price tags and start calculating total ownership costs. Custom batteries deliver reliable, efficient power that saves money year after year.
Q1. Are custom batteries more cost-effective than standard ones for industrial use?
Custom batteries might cost more initially, but they save money over time. They last longer, work more efficiently, and need less maintenance. Typically, they pay off within 2-4 years.
Q2. How do the lifespans of custom and standard industrial batteries compare?
Custom lithium-ion batteries last 2,000-3,500 charge cycles, or about 8 years. Standard lead-acid batteries last 1,000-1,500 cycles, or roughly 4 years.
Q3. What are the maintenance differences between custom and standard batteries?
Custom lithium batteries need little to no maintenance. They don’t require watering, equalizing, or cleaning, unlike standard lead-acid batteries. This saves time and lets staff focus on other tasks.
Q4. How do custom batteries perform in cold temperatures compared to standard ones?
Custom batteries, especially those made for specific uses, perform better in the cold. Some custom sodium-ion batteries lose less than 5% capacity at -20°C. Standard lithium-ion batteries may lose up to 10%.
Q5. What factors should be considered when calculating the total cost of ownership for industrial batteries?
Consider the initial price, replacement frequency, energy efficiency, maintenance needs, and end-of-life value. Also, think about daily operational hours, local energy costs, and specific application needs.
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