Optimization of Battery Energy Storage Systems for Peak Shaving: Implications for Sustainable Energy Management and Policy

Abstract

Battery Energy Storage Systems (BESS) are increasingly important for organizations and industries seeking to enhance sustainability, improve energy efficiency, and strengthen operational reliability. As global energy demand continues to rise, adopting storage technologies is not only a technical solution but also a strategic approach that supports corporate sustainability agendas and environmental, social, and governance (ESG) commitments. This study explores the optimal deployment of BESS using an optimization-based approach under a 24-hour demand profile. Two scenarios are analyzed: the use of a single storage unit and the use of multiple units. The results show that integrating BESS improves system stability and reduces energy losses compared to operating without storage. Moreover, the multiple-unit configuration provides more effective peak shaving and load balancing than the single-unit case, emphasizing the importance of appropriate capacity planning. Beyond the technical results, the findings highlight practical implications for managers and policymakers in improving operational efficiency, reducing energy risks, and aligning with national energy transition goals.