Energy storage’s ability to help commercial and industrial customers manage energy needs, control costs, and reduce emissions is becoming more widely understood, but what’s less clear for those customers is how to take advantage of those benefits while managing investment, technical, and market risk. That’s why Fluence, Siemens Smart Infrastructure, Siemens Financial Services, and MW Storage have launched an innovative service model in Europe for energy storage systems – “storage-as-a-service” – to offer businesses simple, efficient, and reliable access to energy storage. Finnish beverage manufacturer Sinebrychoff is the first company to contract for our storage-as-a-service solution, powered by a 20 MW Gridstack™ energy storage system.
How are we providing this all-in-one solution? As with brewing beer, it takes the right ingredients and expertise.
Storage-as-a-Service: Minimizing Risks, Maximizing Efficiency
Sinebrychoff is one of Finland's leading breweries, producing nearly 300 million liters of beer, cider, soft, and energy drinks annually. Sinebrychoff’s team was looking for ways to improve its energy efficiency and power quality at production facilities: while energy storage could provide those benefits, brewery managers were unfamiliar with potential risks associated with financing, owning, and operating a storage asset.
The storage-as-a-service model offered an attractive alternative to business-as-usual for Sinebrychoff. Similar to other product-as-a-service models (e.g. solar-as-a-service or software-as-a-service), storage-as-a-service enables the customer to access the product’s benefits without upfront investment or technical expertise. The brewery provides a site for the project and access to the grid; in return, it gets the use and benefits of a 20 MW battery-based energy storage system financed, built, and operated by third parties with expertise in their respective fields.
This service model is the product of a partnership between Fluence, Siemens Smart Infrastructure, Siemens Financial Services, and MW Storage, bringing together a powerful combination of logistical, financial, market, and technical expertise:
- The Financier: Swiss-based MW Storage secured the initial project investment and owns a 69% stake in the project.
- The Solution Provider: Siemens Smart Infrastructure (SI) delivers EPC services and provides high-voltage grid connection and controls, as well as balance of plant electronics and components. Aside from installation, Siemens SI is also responsible for operating the system and ensuring energy optimization at the plant for 10 years.
- The Bank: Drawing on its risk management and deal structuring expertise, Siemens Financial Services built the legal, commercial, and financial framework for the project, and holds a 31% share in it.
- The Energy Storage Technology Provider: Fluence is supplying its industry-leading 6th generation technology, with a 20 MW Gridstack energy storage system comprised of an integrated modular, factory-assembled form factor (the Fluence Cube), sophisticated operating software (Fluence OS), and advanced digital intelligence (Fluence IQ).
- The Off-takers: In return for a project site and access to the grid, Sinebrychoff can use the energy storage system to improve its energy efficiency and power quality. In addition, Fingrid, Finland’s national grid operator, will purchase additional services provided by the storage asset from the brewery – in this case, primary grid frequency regulation – delivering additional value to the brewery while also strengthening the regional grid.
Storage-as-a-service Supports Customers – and the Broader Energy Transition
Energy storage is key to a more resilient, sustainable energy future. But it’s also a smart business decision. Storage-as-a-service makes it easy for commercial and industrial customers to take advantage of a variety of benefits battery-based energy storage systems can provide, including:
- Improve energy efficiency and power quality
- Reduce operational costs and electricity bills
- Use self-generation to deliver new revenue streams
- Pay for an infrastructure upgrade with future savings (i.e. no up-front capital costs)
The model also removes significant hurdles for customers, including:
- Access to project finance
- Project management, deal structure, installation, procurement, O&M, and other EPC, technical, or operational responsibilities
- Price, regulatory, and market risks
Europe is at the forefront of energy innovation. Fluence, Siemens Smart Infrastructure, Siemens Financial Services, and MW Storage see significant opportunities for storage-as-a-service to help more companies across the region in the food and beverage sector, as well as other industries, improve their businesses and support the global transition to a more sustainable future.
Interested in learning more?
Contact us to inquire about storage-as-a-service offerings.