Using dynamic electricity tariffs on the energy market

Are you facing the challenge of optimizing and reducing your electricity costs with dynamic electricity tariffs on the energy market? The increasing volatility offers you the opportunity to profit from these price fluctuations. With intelligent management, you can shift your electricity consumption to favorable time windows. Especially when dealing with high energy demand and battery storage, the so-called Time-of-Use (ToU) strategy is a highly profitable solution for you. You can flexibly adjust your energy consumption to dynamic electricity tariffs and, in combination with battery storage systems and photovoltaic (PV) installations, achieve optimal electricity procurement optimization.
Advantages of the Time-of-Use (ToU) Strategy
The ToU strategy relies on an energy management system that specifically shifts grid consumption to times of low electricity prices. By using battery energy storage systems (BESS), the required electricity is stored during periods with favorable prices, such as at night or when there is high renewable energy generation, and used during expensive peak price periods.
Dynamic electricity tariffs with battery storage: Here’s how It works
Electricity price volatility occurs not only throughout the year but also on a daily basis, known as the daily spread. For example, in 2023, the average hourly electricity price per day fluctuated between nearly 14 and just under 7 ct/kWh (Source: Agora Energiewende (2024): The energy transition in Germany: State of Affairs 2023. Review of key developments and outlook for 2024). Below, we explain how you can take advantage of profit potentials from these dynamic electricity tariffs on the energy market.
Leveraging price volatility for profit
The battery storage system serves as an energy buffer. It is charged, for example, at night or early in the morning when electricity prices are low (❶) and the PV system is not yet generating power. The stored energy is then used in the morning to cover the company’s own electricity demand (❷), avoiding the need to purchase expensive grid electricity. In the afternoon, surplus PV power is stored again (❸) as market prices remain moderate. Finally, the storage system discharges in the evening (❹) when electricity prices are high and market demand increases.

In this way, you optimize your average grid electricity procurement, and the feed-in tariff is enhanced through direct marketing of the PV system.
Fig. 1: Example of intelligent electricity usage and optimization of electricity procurement throughout the day (Source: STABL)
Advantages for energy-intensive companies
The ToU strategy is particularly ideal for energy-intensive companies that source a large portion of their energy needs from the dynamic market. Thanks to the flexibility of the battery storage system, they can strategically adjust their grid consumption and avoid high costs during peak load times. Additionally, the ToU strategy allows for targeted load shifting, significantly lowering operating costs while making more efficient use of their own resources. Even without a PV system, companies can use the ToU strategy to flexibly adjust their grid consumption. The battery storage reduces grid electricity usage when prices are high, such as during the week, and allows more energy to flow when prices are low, such as on weekends.
Conclusion: Smart Electricity Purchasing and Selling
Do you source dynamic electricity prices and want to optimize your electricity purchasing and selling? With strategic electricity procurement management and modern battery storage solutions, the ToU concept not only offers your industrial company an intelligent method for optimizing electricity procurement but also supports a resource-efficient way of operating.
Every company has unique requirements for an optimal power supply. Our expert team specializes in developing a tailored solution for your specific needs. We are happy to advise you on how to utilize dynamic electricity tariffs with battery storage and simulate the profit potentials for your current situation.
Additionally, read how atypical grid usage and energy storage can significantly reduce individual grid fees.
Link: Atypical Grid Usage: Save Costs with Individual Grid Fees