Isrotel Hotels to Install Energy Storage Systems with Doral Urban
Isrotel, a major Israeli hotel chain, is installing electricity storage systems in five of its hotels as part of an initiative to reduce energy costs and enhance backup power. The systems will be implemented in collaboration with Doral Urban, an energy company specializing in commercial and municipal properties. The hotels involved are Mitzpe Yamim, Gomeh, Breishit, Ye'arot HaCarmel, and Orient Jerusalem.
The financial investment, battery capacity, and projected savings were not disclosed, making it difficult to assess the impact on Isrotel's profitability at this stage. The success of the project will hinge on the difference between the cost of installing and operating the systems and the reduction in electricity expenses over the project's lifespan. Hotels are significant electricity consumers due to round-the-clock operations of air conditioning, kitchens, pools, laundries, elevators, and water systems.
Energy storage systems allow for charging batteries during off-peak hours when electricity rates are lower and discharging them during peak hours, thereby lowering the average cost of electricity consumed. The potential savings for Isrotel are not calculable without data on the system sizes and consumption patterns at each hotel. Profitability depends on factors such as the rate differences between charging and discharging times, the number of battery usage cycles, and the extent of electricity consumption during expensive hours.
Hotels' predictable, near-continuous electricity demand makes them suitable for this model. An energy management system can schedule charging and discharging based on consumption patterns and tariffs, while the batteries can provide backup power for essential systems during outages. Doral Urban, which already operates storage systems in commercial properties, is expanding its reach into the hotel sector with this agreement.
This project with Isrotel follows a similar deal Doral Urban struck with Big, involving energy storage systems in 15 of Big's commercial centers, with a combined capacity of approximately 120 megawatt-hours. Doral has been actively expanding its energy storage portfolio, with reported projects and ready-to-connect facilities totaling around 1.7 gigawatt-hours and a mature backlog of about 5.6 gigawatt-hours, which has since grown to 8.6 gigawatt-hours. The Isrotel deal signifies the application of this technology to commercial end-users, not just large-scale production and storage facilities.
For Isrotel, these five hotels will serve as a practical test for the economic viability of energy storage. If the electricity savings prove substantial relative to the system costs, the chain may consider expanding the use of storage to additional hotels.
