How does energy storage enable us to reach Paris agreement climate targets?

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Decarbonize with energy storage solutions

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.

PV energy production

Energy storage solutions – supporting renewable energy

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.

How to ensure a stable and reliable grid supply when integrating renewable energy sources

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?

Grid support

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 generators Power transmission operators

Energy consumers

Energy storage plays a role in energy production, to ensure that supply is adequate to meet demand 24/7.

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.

Furthermore, a battery energy storage system (BESS) can support grid ancillary services, such as frequency regulation, backup generation for unforeseen incidents, and voltage control.

At the point of energy consumption (demand side), energy storage

  • Enables self-consumption of solar power (PV)
  • Endows resilience in cases of brown-outs or black-outs
  • Enables Demand Response, to reduce the load on the network when the energy price is high or the grid is not capable of providing the power at a particular instant in time

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

  • Commercial & Industry (C&I)
  • Residential
  • Vehicle to Grid (V2G)

Front-of-the-meter (FTM) sectors comprise

  • Energy generation
  • Power transmission

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.

Behind-the-meter and front-of-the-meter

Behind-the-meter and front-of-the-meter

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.

How energy storage supports prosperity and energy security

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.

How energy storage maintains power quality, quantity, and reliability

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:

Remember voltage quality for a stable network

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:

Battery Charging Illustration

How battery energy storage generates revenue streams

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

  • Reduce operating expenses (OPEX)
  • Improve system efficiency
  • Increase system availability

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:

  • Optimal self-consumption
  • Peak shaving
  • Demand response
  • Participation in Virtual Power Plant (VPP)
  • Resilience through emergency power supply
  • Time-of-use optimization with arbitrage
  • Integration of EV/truck charging

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 Arbitrage
  • Ancillary Services (Frequency regulation, Reactive Power)
  • Capacity market

Energy storage revenue streams for BTM

  • Save energy cost, by buying only when price is low (TOU, Time of Use)
  • Backup power (which eliminates the need for a diesel engine, fuel, diesel maintenance)
  • Company values, reduced emissions
Smart grid enabler

Smart grid enabler

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

Learn more about peak shaving, time shifting and back-up power: Intelligent power conversion for smart grids | Danfoss

Solutions

Energy storage solutions (ESS)

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 Grid enabler

Smart Grid enabler

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.

Industrial DC back up

Industrial DC back-up

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

  • Enhance grid flexibility and resilience, allowing for better management of supply and demand fluctuations, peak shaving, and load shifting
  • Improve overall system efficiency by capturing and utilizing excess energy that would otherwise be wasted
  • Boost the reliability and stability of electricity supply in the form of back-up power, which reduces the risk of blackouts and improves grid performance

Energy storage therefore provides businesses and utilities with competitive opportunities:

  • Minimize or delay capital expenditures (CAPEX)
  • Optimize system sizing to avoid excess capacity
  • Postpone investments in infrastructure
  • Support decentralized energy generation
  • Mitigate energy fluctuations, for example in solar and wind power
  • Facilitate the integration of renewable energy sources into the grid system

Applications

Smart grids rely on energy storage: Solar and wind power

Suløy ferry charger

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.

Electrification of transport

Electrification of transport

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?

  • Reduce or defer capital expenses (CAPEX). By actively controlling, monitoring, and supporting the grid from local batteries you can achieve the high peak power crucial to fast charging without investing in grid infrastructure. This is done by using local batteries with peak shaving functionality. Peak shaving optimizes the energy flow between the incoming supply and local storage to meet spikes in demand without disrupting the supply grid. Excess energy can be stored when demand and costs are low.
  • Reduce operating expenses (OPEX). Draw upon green electricity to charge a battery energy storage system (BESS) supplying the charging system. When this green energy is produced and consumed locally, the OPEX is minimized.
ESS support for DC grids

ESS support for DC grids

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:

  • Lower OPEX and CAPEX due to fewer components, and less copper
  • Increased energy efficiency
  • Regenerative and redundant capabilities
  • Ability to utilize excess heat from a liquid-cooled system

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%.

Short circuit protection using simulation tools

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.

Read the data center CSR blog
The future of renewable energy

The future of renewable energy: hydrogen and other green fuels

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.

Energy storage for shore supply Whitepaper

Energy storage for shore supply

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”.

Dealing with Danfoss: Our purpose and our approach

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:

  • ESG
  • CO2-neutral manufacturing
  • Skilled people
  • Responsibility in safety and QM
  • Expertise in mass production
  • Financial stability

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

Simulation

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.

Functional mockup units (FMUs)

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

Cybersecurity

Avoid unauthorized access

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.

Highlighted products

iC7-Hybrid power converters

iC7-Hybrid

Open up for intelligent power conversion.

iC7-Hybrid is optimized for all power conversion applications and has an unrivaled power density with new filter technology.

Case stories

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    Revolutionizing green hydrogen production with Danfoss Drives

    DENMARK: The Everfuel HySynergy facility produces green hydrogen with the help of iC7-Hybrid power converters for efficient, cost-effective electrolysis.

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    Danfoss powers high-capacity SmartGrid energy storage

    NETHERLANDS: Retaining 80% capacity after 8000 cycles, SmartGrid smart battery containers promise 21 years of daily discharge and recharge without performance concerns.

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    Generating energy from green waste to fuel a city

    AUSTRALIA: Jeffries Group supports the city of Adelaide by using the biochar byproduct of green waste to generate renewable energy, driven by VACON power conversion. There's enough power to run their entire green waste operation and feed surplus energy back into Adelaide’s power grid — with zero emissions.

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    Unique heat recovery for geothermal power using VACON® drives

    AUSTRALIA: A geothermal power station recovers energy during the bore water cooling process then uses it to generate power for the local community, with the help of VACON® drives.

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    Kneipp-Institute leads the way in storing renewable energy

    An institute in Kamień Śląski, Poland, is pioneering climate neutral energy consumption. Danfoss helps store electricity from the sun. Savings on electricity bill and CO2 emissions are the main drivers.

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    Alfen energy storage enables the energy grid of the future

    Electrification and hybrid solutions are now booming. One of the first pioneers was the Dutch based energy storage manufacturer Alfen B.V., which has used Danfoss power conversion equipment since the early days.

News

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    BEACON Project: Illuminating the Future of Off-Highway Electrification
    Tuesday, September 3, 2024

    Fossil Free Future project is running on full steam with different projects, innovation work and co-operation. The BEACON project is a collaborative research initiative aimed at accelerating the electrification of Non-Road Mobile Machinery (NRMM).

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    Danfoss and University of Vaasa Join Forces in Ideal4Green Doctoral Network Program for Sustainable Energy Innovation
    Tuesday, July 16, 2024

    The Ideal4Green project aims to address climate change and the global shift towards sustainable energy systems. It focuses on developing and integrating microgrids to manage the variety of renewable resources and achieving decarbonization targets.

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    Unlocking Innovation: Exploring the Power of Interdisciplinary Collaboration
    Friday, May 3, 2024

    On 9th of April 2024, a remarkable event unfolded at Danfoss Vaasa premises, bringing together the Veturi companies in Vaasa region: Wärtsilä, Mirka and Danfoss under one roof for a collaboration event

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