Economic and Operational Benefits of Centralized Energy Storage Systems for Effective Power- Sharing in Multi-Tenant Buildings

Abstract

In the face of escalating climate challenges, environmental sustainability has greatly become an urgent and non-negotiable priority, necessitating revolutionary advancements in energy management to reduce carbon footprints and drive profound improvements in overall sustainability. This paper presents an advanced optimization framework, PST-CESS, for managing power-sharing among multiple tenants within the centralized energy storage system (ESS). Our thorough evaluation demonstrates that the centralized ESS facilitated by PST-CESS substantially exceeds the performance of individualized ESS systems in pivotal areas such as peak load reduction, variability mitigation, and financial profitability. Specifically, the centralized ESS model achieves up to a 44.05% reduction in annual peak load for certain tenants and reduces electricity consumption variability by up to 57.67%. From a financial perspective, the centralized ESS model delivers remarkable advantages, reaching a break-even point in just 2.48 years, compared to the 5.08 years required for individualized ESS systems, even when accounting for battery capacity loss costs, also known as battery degradation costs. These results highlight the centralized ESS approach as a more economically advantageous and efficient solution, providing superior financial returns and optimized energy management for multi-tenant buildings. The strategic benefits and compelling evidence presented in this study strongly support the widespread adoption of centralized ESS models to maximize both economic and environmental benefits, establishing a new standard for sustainable energy management.

Keywords

• Energy management
• energy storage system
• optimization
• smart building
• automation
• energy efficiency