Electricity prices are determined by a variety of factors affecting supply and demand for balance. Since electricity is produced and consumed at the same time, demand and supply must be balanced in real time, hence the high volatility in electricity prices.
The “demand response” protocols (an economic rationing system adapted to the electricity market) are aimed at adjusting the demand for power instead of changing supply. In other words, electricity generation companies actively ask industrial and commercial consumers to moderate consumption by changing the operating times of the machines and the activity of other electricity consumers. In response, the customer may choose to adjust their power demand by rejecting several tasks that require large amounts of electricity or may decide to pay a higher rate for the electricity. Some customers may choose to change some of their consumption to alternative sources, such as solar panels and batteries.
“Voluntary” rationing is achieved through price incentives, which offer lower net pricing per unit in exchange for reducing electricity consumption during peak periods. Despite the huge importance of the demand response to the electricity market, producers, distributors and consumers are eager for low-cost and efficient solutions to streamline the energy supply system. Their need to balance energy usage is acute and directly connected to the ability to provide electricity regularly and at reasonable prices. The deployment of advanced energy systems that store electricity or cold and generate renewable energy, i.e. solar, is designed to enable uninterrupted power supply during hours of power outages. Energy storage is the ultimate solution, because it enables the storage of energy at a time of low demand and the supply of energy at peak of demand.
StorageDrop’s Energy storage systems enable the flattening of high peaks in the output of energy production stations from renewable sources. Moreover, they minimize consumer dependence on power grids by releasing potential energy stored in the system and turning it into electricity at peak demand times.