Case Study - ESI Program Revenue Stacking
3.4 MWh Battery Energy Storage System (BESS) for a Northern-BC Wood Manufacturer
OVERVIEW
A remote wood-products plant in Northern BC was losing thousands in downtime because the region’s frequent storms and feeder faults knocked the grid offline several times each quarter. We deployed a 3.4 MWh, UL 9540- certified Battery Energy Storage System that now carries the entire production line through every outage—saws, kilns, conveyors, and dust-collection fans keep running with zero product spoilage.
PROBLEM
- Remote lumber-processing plant, Northern British Columbia
- Grid faults/outages several times per quarter → production stoppages, kiln heat-loss, spoiled inventory
- Rising demand charges on BC Hydro’s LGS tariff
- No budget or lead-time for a costly service-upgrade
SOLUTION
- Battery system: 3.4 MWh, UL 9540-certified LFP cabinets
- Power conversion: 1 × 3 MW bidirectional PCS, grid-forming firmware
- Controls: Cloud-linked EMS with DR & peak-shave logic
- Commissioning: Turn-key EPC, CSA field inspection, fire-code sign-off
INCENTIVE STACK & NET CAPITAL
| Battery system CAPEX | $840,000 |
| BC Hydro Energy Study & Implementation (ESI) grant – 80 % | – $672,000 |
| Client share before ITC (20 %) | $168,000 |
| 30 % Investment Tax Credit on client share | – $50,400 |
| Net client capital outlay | $117,600 |
By supplying power during the highest-load interval, the battery trims the facility’s peak from P₁ kW to P₂ kW, avoiding demand charges on that difference every billing cycle and smoothing the site’s load profile for the utility.
FINANCIAL RESULTS
- Simple payback: 13.5 months
- 15-yr NPV (8 % discount): $0.78 M
- Project First Year ROI: ≈ 89 %
Operating Economics
By combining everyday peak-shaving with grid-service revenue, the 3.4 MWh battery delivers two stacked cash flows. First, flattening the plant’s load curve trims demandcharge line items by ≈ $10 000 per month (~$120 000 / yr). Second, when BC Hydro issues Demand Response dispatches, the BESS discharges into the grid and earns an additional ≈ $10 000 per month in DR payments (~$120 000 / yr). After covering the $15 000 annual EMS licence & routine O&M, the site pockets roughly $225 000 in net benefit every year, turning the storage asset into both a cost-saver and a profit center.
Strategic Outcomes
Resilience: Zero production downtime during grid events; kiln temperature never drops. control: 25 % cut in demand-charge line items; predictable energy budget. Revenue: DR participation converts stored energy into cash during provincial peak alerts. ESG & brand: Lower Scope-2 emissions, aligns with Chain-of-Custody sustainability audits. Future-proof: PCS and EMS are sized for future solar or wind tie-in.