Which operating mode involves an ESS discharging during peak electricity demand hours and charging during off-peak hours?

The operating mode where an Energy Storage System (ESS) discharges during peak electricity demand hours and charges during off-peak hours is called peak shaving. Peak shaving aims to reduce the peak demand on the grid by using stored energy to meet electricity demand during periods of high consumption. During peak hours, electricity prices are typically higher due to increased demand. By discharging the ESS during these hours, the system reduces the load on the grid, which can lower overall electricity costs for consumers and utilities. The ESS is then charged during off-peak hours, when electricity demand and prices are lower. This process helps to flatten the load curve, reducing the need for expensive peak power plants and improving grid stability. Peak shaving can also reduce transmission and distribution congestion, as the ESS provides power closer to the point of consumption, reducing the strain on the grid infrastructure. This operating mode is economically beneficial for ESS owners because it allows them to purchase electricity at lower prices and sell it at higher prices, generating revenue through energy arbitrage.