Monetizing Energy Storage in the Data Center

Overview

The paper shows that as grids add intermittent renewables, data centres can use idle UPS battery capacity for grid services. These services are frequency regulation, demand response and peak shaving. The aim is to earn revenue from a storage asset that is already installed. It explains UPS operating modes for curtailment and injection, and the runtime trade-off when exporting beyond the IT load. In the example, a 400 kW IT load on a 1,000 kW UPS can curtail 400 kW and inject 600 kW, but the remaining runtime shortens as a result.

Data centres typically hold a minimum of 10 to 15 minutes of UPS runtime at full load. Demand charges are commonly measured over 15-minute intervals, which makes short peak-shaving events attractive. Li-ion, with a life above 10 years and good cycle tolerance, is identified as the chemistry that enables this use. The paper stresses the balance between backup reliability and revenue: a minimum reserve runtime must be preserved while providing grid services. Its numeric examples rest on individual scenarios, and real revenue potential depends on local market rules and tariffs.

In a design tool an optional grid-interactive UPS feature can be defined. Exportable power should be computed as UPS capacity minus IT load, together with the resulting runtime. Because cycling requires Li-ion, that warning should be shown and the minimum reserve runtime should be verified as preserved; otherwise backup reliability is weakened for the sake of revenue.

Key points

1. Data centres typically hold a minimum of 10-15 minutes of UPS runtime at full load
2. Example: 400 kW IT on a 1,000 kW UPS can curtail 400 kW and inject 600 kW, at reduced runtime
3. Demand charges are commonly measured over 15-minute intervals
4. Li-ion life above 10 years supports cycling
5. Services: frequency regulation, demand response, peak shaving
6. Exporting beyond the IT load reduces runtime

Using it in design

• Add an optional grid-interactive UPS feature
• Compute exportable kW as UPS capacity minus IT load, with the resulting runtime
• State that cycling requires Li-ion and verify the minimum reserve runtime is preserved
• Make local demand-charge intervals an input to the revenue calculation

Who should read it

Data-centre operators seeking energy revenue and designers of UPS architectures.

Related standards

• IEC 62040-3
• IEEE 1547
• UL 1741

Publication details

Authors

Christopher Thompson; Victor Avelar

Publisher

Schneider Electric

Year

2020

Document number

WP 274

Document language

English

Source type

Manufacturer

Access

Free to read

Licence

Copyright retained; citation only — the publisher’s terms apply to the original document

Citation