I’m not explaining this well, am I? Look at this curve:
http://www.ecoult.com/applications/microgrids-telecommunications-and-remote-diesel
Let me think of a rough analogy… hmm… this is going to sound really bizarre, but let’s say you’re a filmmaker who made a movie and you want to show it to 200 of your friends, but your home theater only fits 50 (you’re not THAT rich). Ideally, to save on electricity costs, your time chaperoning them, the number of times you’d have to run the minibar dishwasher, etc., you’d want them to come in groups of 50 at a time so you only have to do it 4 times.
But the reality is that they can’t all make it at once, so you end up needing 15 different showings to get all 200 people to finally see the movie, with the extra capacity just being wasted. There are empty seats, the power for the projector room is still being used, you’re still using your time, but it’s just not operating at capacity. The wasted energy isn’t doing anything useful, just being turned to heat.
Generators are similar in that to do ANY work, they require X amount of fuel. But it’s not a linear relationship such that 100% load = 100% fuel consumption rate and 50% load = 50% fuel. It might actually be the case that 50% load uses 70% of the fuel (made-up numbers), so that 20% is just being wasted as heat. But if you had a battery there instead, that extra 20% could’ve gone to useful charging instead. You’ve turned wasted inefficiency into useful power.
In the real world, it doesn’t make any sense to waste time on this if it’s just a once-in-a-blue-moon emergency (like a hurricane). But if it’s something predictable, like a winter backup system for an off-grid cabin, it might be worth the consideration.
The idea is that you can run the generator at max efficiency a few hours a week, charge the battery bank, and let that handle the small loads. Batteries aren’t perfectly efficient either, but they’re a lot better than generators. At the extreme case, consider running one single LED light bulb: for a battery bank, it would be almost effortless. For a generator, it would be doing a hell lot of work and burning a lot of fuel, but only a tiny percentage of that power (maybe 20%? not sure) would actually go towards powering the light bulb; the rest would just be used to keep the generator internal circuity going and then burning off as waste heat.