Perhaps the most popular question concerning the sustainable energy transition is, “What happens when conditions aren’t ideal for a renewable energy source? In other words, what happens when there’s no wind for wind turbines or the sun’s not shining for solar power?
It’s a good question, and there’s an answer: Energy storage systems can effectively retain excess power until it’s needed later.
A number of energy storage options are available for the energy transition. In fact, some power plants already use a storage system known as pumped hydro storage, or PHS. This system involves pumping water uphill into a reservoir during off-peak hours (when electricity costs less). Once the demand goes up, the water is released to generate electricity.
It’s easy to see the problem with PHS: It requires highly specific geographic conditions. If a power plant isn’t near large bodies of water at multiple elevations, PHS is not likely to be an option. Attempting to replicate these geographic conditions with a construction project is often prohibitively expensive.
Thankfully, better energy storage systems are now emerging to accelerate the energy transition. Chief among them is the battery energy storage system (BESS). A BESS is essentially a large-scale, battery-powered energy storage system designed to store excess electricity generated during peak production periods — like sunny days or windy nights. The stored energy can then be discharged when renewable energy is less productive. BESS can also provide a boost of power during times of peak demand.
The Benefits of Battery Energy Storage Systems (BESS)
Battery energy storage systems aren’t the only type of storage systems available for the energy transition. For example, solar electric systems are often coupled with a thermal energy storage solution. However, battery energy storage systems are usually more cost-effective than the alternatives, and they integrate easily into nearly any renewable energy source.
Some additional benefits of BESS include:
- Enhanced grid stability: BESS helps keep power grids stable via voltage control, frequency regulation, and the ability to “black start,” which means they can provide the initial power to restart a grid after a total blackout.
- Peak demand management: By discharging stored energy during periods of high consumption, BESS helps alleviate peak demand.
- Power resiliency: BESS provides backup power during outages, brownouts, and other disruptions, strengthening the grid’s overall resiliency.
BESS Applications
These features and benefits provide a viable path toward energy transition for utility companies. However, that’s not the only potential use of battery-powered energy storage systems. Businesses and industrial settings could also use BESS to reduce energy costs or provide backup power for critical operations, replacing generators that run on gasoline or other non-renewable fuel.
Likewise, residential settings such as homes or apartment buildings can be used as a backup power source or to store solar energy. Remote or completely off-grid locations could use BESS as a reliable power source in any number of scenarios — homes, businesses, or solar and wind farms.
Battery Choices and Design Considerations
So, what kind of batteries can provide all this power and serve so many applications? Think of your smartphone. Thanks to the battery technology contained within, you can carry around an extremely powerful computer, high-definition camera, OLED display, and mobile internet device that also functions as a mobile phone. Now imagine harnessing this technology in banks of batteries with much higher capacities, higher power output, and extremely long cycle life.
This is possible because a BESS may have batteries with lithium-ion chemistry, just like your smartphone. Lithium-ion is the most common type of battery technology for battery energy storage systems. However, the batteries use larger, more specialized cells than your phone’s battery so the BESS can achieve the required capacity and output.
A BESS might also use lead-acid batteries, the same mature technology car batteries use. Lead-acid batteries have a low cost per kilowatt-hour compared to lithium-ion. Sodium-ion provides a promising alternative to lithium-ion, with similar energy density and cycle life but better safety in high-temperature environments. Another alternative for a BESS is flow batteries. These batteries store energy in a liquid electrolyte, which more easily scales up to the massive power requirements of a grid.
The best choice for a BESS depends on the location and application requirements. The advantage of these options, though, is that battery energy storage systems are versatile and can be used in many different scenarios.
Examples of BESS Deployments and Use Cases
Part of what makes battery energy storage systems the emerging choice for the sustainable energy transition is that they’ve already been proven in various deployments.
A prominent example is Tesla’s Gigafactory in Nevada, which houses one of the largest BESS projects to date. Tesla calls this system Megapack, and the company is targeting utilities and large-scale commercial projects as customers of its BESS technology.
At the state level, Hawaii has been a pioneer in BESS deployments. Hawaiian Electric’s BESS projects store wind and solar energy during periods of low customer demand and provide resiliency to the main grid.
In partnership with Advanced Microgrid Solutions, Walmart has effectively converted some of its big-box stores into hybrid electric buildings. This is one step in the retail giant’s path to 100% renewable energy by 2035.
Data centers worldwide have long committed to battery-powered backup solutions. Now, some of the largest cloud operations are replacing fossil fuels with battery energy storage systems. A notable example is Microsoft, which replaced its diesel-powered solution with a BESS at a Swedish data center in 2023.
Regulations Driving BESS Adoption
The companies and government bodies adopting BESS likely did so after careful consideration and a detailed cost-benefit analysis. In addition, they may have felt some pressure as governments and regulatory agencies around the world implement policies and incentives that make BESS deployment an attractive option.
For example, many countries have adopted regulations that meet the Renewable Portfolio Standards (RPS), which require increased energy production from renewable sources, to help ease the energy transition. In addition, nearly every government in the developed world has invested in grid modernization initiatives, and battery storage systems are often a core part of these efforts.
Governments may also offer tax incentives or subsidies for BESS deployments. For instance, the New York City Economic Development Commission (NYCEDC) unveiled incentives in May 2024 as part of its Green Economy Action Plan. One of the first projects is a BESS deployment that will produce 100 megawatts of electricity in Astoria, Queens.
BESS deployments can be seen as the right thing to do on the path toward the energy transition, and they can be cost-effective. However, these and other regulatory factors may be the most significant driver at this point. The tax incentives provide an excellent reason for municipalities, businesses, and homeowners to deploy BESS solutions now rather than later.
What the Future Holds for BESS
As a world powered by renewable energy becomes more of a reality, BESS adoptions are leading the way. According to Wood Mackenzie’s US Energy Storage Monitor report, grid-scale energy storage installations reached 7.9 gigawatts in 2023 — an increase of 98% over the prior year. With so much investment in the field, you can expect to see the battery storage industry rapidly evolve in the near future.
For battery production, the increased demand will lead to economies of scale, driving down the costs of BESS deployments. The technology will continue to move forward, too, as new battery chemistry and materials will enable the average BESS to store more energy in smaller units. Combining different chemistries will lead to hybrid storage systems tailored to diverse applications.
As battery energy storage systems become more common, BESS deployments will provide the foundation for smart grids, optimizing energy distribution on the fly with artificial intelligence. Multiple storage systems will be aggregated to form virtual power plants, allowing for cloud-based deployments with automated frequency regulation and power sharing on a large scale.
In short, the future looks bright for BESS technology and adoption. As BESS deployments become an integral part of the power landscape, the world will get closer to the sustainable energy transition.
How Resellers Can Help With BESS and the Energy Transition
The biggest and most significant step toward the energy transition or starting a BESS project is just getting started. However, the many battery technologies, the complexity of meeting sustainable energy goals, and ensuring you’re investing in the correct BESS deployment can be bewildering. That’s where resellers can help.
By providing expert guidance, custom solutions, and ongoing support, a qualified reseller can help business, governmental, and residential end-users make informed decisions for BESS adoption. With a thorough assessment to understand your energy needs and overall objective, a reseller can identify the ideal battery technology and BESS configuration. They can also provide expertise in integrating with existing energy infrastructure and ensuring regulatory compliance.
Resellers can also support BESS end users via ongoing support, maintenance, and system upgrades when the time comes. By establishing a relationship with a trusted reseller partner, you ensure you’re not going down the path to energy transition alone. Instead, you’ll have a trusted partner who can help you meet your long-term energy goals.
Global Power Supply: Here to Help With Battery Energy Storage
Here at Global Power Supply, we offer years of expertise with batteries and energy solutions. With that knowledge and experience, we can help our customers find the BESS solutions that meet their unique needs. From finding the right battery technology to developing hybrid solutions that combine a BESS with diesel or natural gas, we guide you through the entire process.
To learn more and get started with the energy transition and a BESS configured to your needs, contact us today.