Battery Energy Storage System (BESS), has undergone a remarkable evolution in recent years, driven by advancements in battery technology, policy changes, and the increasing need for grid flexibility with the rise of renewable energy. Battery energy is used in grid support, integration of renewable energy and commercial/industrial applications.
Advancements in battery technology have shrunk cell sizes, boosted capacities, and slashed costs, making BESS a viable and attractive option for diverse applications. Policy landscapes around the world are rapidly evolving, recognizing the crucial role BESS plays in grid resilience and decarbonization, with supportive regulations and incentives further fueling the BESS boom. Perhaps the most significant driver, however, is the focus on growth of renewable energy. As wind and solar power soar in popularity, their inherent variability challenges grid stability, demanding flexible solutions like BESS to bridge the gaps.
Advancements in battery technology have shrunk cell sizes, boosted capacities, and slashed costs, making BESS a viable and attractive option for diverse applications.
In grid support, BESS alleviates peak demand burdens stabilizing the system. They excel at integrating renewable energy, absorbing excess solar and wind generation power during periods of abundance, and releasing it when the sun dips below the horizon or the wind slows down, ensuring a reliable and uninterrupted energy supply.
In the commercial and industrial realm, BESS empower businesses with self-reliance, allowing them to store off-peak power and utilize it during peak hours, slashing energy costs and boosting operational efficiency.
Beyond the grid benefits, BESS contribute to climate change mitigation by enabling increased penetration of clean renewables and displacing polluting fossil fuel generation. They enhance energy security by providing backup power and mitigating the risks of blackouts. For businesses, BESS translate into cost savings, operational flexibility, and improved environmental stewardship.
Below are the application and advantages of having Battery Energy Storage.
Early Days in the 2000s:
BESS deployments were small-scale and mainly focused on niche applications like backup power for critical infrastructure. Lithium-ion batteries, the dominant technology based on its high energy density, were expensive, hindering widespread adoption. Batteries primarily provided basic grid support services such as frequency regulation.
Rise of Renewables in the 2010s:
The growth of solar and wind energy highlighted the need for energy storage to address their intermittency. Advancements in battery technology led to significant cost declines, making lithium batteries more commercially viable and started playing a broader role in the grid, including peak shaving, energy arbitrage, and transmission deferral.
BESS in the 2020s:
BESS deployments are no longer just utility-scale; residential and commercial systems are gaining traction. BESS are moving beyond traditional grid services, participating in wholesale markets, and providing flexibility for microgrids. New battery chemistries, promise even higher energy density and lower costs.
While lithium batteries are the primary choice of battery technology for BESS, there are many other technologies that are in place and emerging:
The modernization of the grid infrastructure is creating new opportunities for BESS to provide valuable services. Government policies promoting renewable energy integration and carbon emission reduction have incentivized BESS adoption. Growing awareness of climate change and the need for clean energy is also driving public support for BESS technologies.
As battery technology continues to evolve, costs will reduce, and applications grow, their impact will only broaden and deepen. This remarkable evolution, driven by the unwavering pursuit of a cleaner and more sustainable future, promises to reshape the very way we generate, store, and utilize energy.
The Future of BESS:
BESS will be pivotal in enabling a more distributed and resilient grid, facilitating the integration of distributed energy resources. BESS will become increasingly intelligent, utilizing AI and machine learning to optimize smart grid operations. There is an increasing focus on developing more sustainable and ethical battery materials and recycling to minimize environmental impact.
With continued innovation and policy support, BESS can play a key role in achieving a clean and sustainable energy future.
BESS will be pivotal in enabling a more distributed and resilient grid, facilitating the integration of distributed energy resources. BESS will become increasingly intelligent, utilizing AI and machine learning to optimize smart grid operations.
Sources:
LinkedIn article "2031 Battery Energy Storage Systems (BESS) Market Projections: Identifying Growth Opportunities and Emerging Trends"
Energy-Storage.News article "Global BESS deployments to exceed 400GWh annually by 2030, says Rystad Energy"
Energy-Storage.News article "Record growth for US BESS industry, but '2GW impacted by supply chain, interconnection challenges'
Global BESS market: 2031 Battery Energy Storage Systems (BESS) Market Projections: Identifying Growth Opportunities and Emerging Trends, LinkedIn article by Research and Markets (August 2022)
Global annual BESS installations: Global BESS deployments to exceed 400GWh annually by 2030, says Rystad Energy, Energy-Storage.News article (November 2023)
US BESS industry: Record growth for US BESS industry, but '2GW impacted by supply chain, interconnection challenges', Energy-Storage.News article (October 2023)
International Renewable Energy Agency (IRENA) report "Unlocking the Potential of Battery Energy Storage for Renewables Integration" (2023)
The Global Energy Storage Alliance (GESA) report "The State of Energy Storage 2023"
World Energy Council's report "The Role of Energy Storage in Grid Modernization" (2022)
BloombergNEF's "2023 Battery Price Forecast" and BNEF's "Energy Storage Trends Report" (2023)
The International Energy Agency (IEA) report "Global EV Outlook 2023"
National Renewable Energy Laboratory (NREL), "Cost and Performance Analysis of Battery Energy Storage Systems" (2023)
International Renewable Energy Agency (IRENA), "Unlocking the Potential of Battery Energy Storage for Renewables Integration" (2023)
Electric Power Research Institute (EPRI), "Grid Integration Challenges for Large-Scale Battery Energy Storage Systems" (2022)
The Cost of Energy Storage: Understanding the Costs and Drivers of BESS Deployment" (2023)
International Energy Agency (IEA), "Global EV Outlook 2023"
World Energy Council, "The Role of Energy Storage in Grid Modernization" (2022)
The Energy Storage Association, "2023 BESS Deployment Guide"
Jeff Donato is the Sales Director-Safety Products at H2scan. Jeff Donato has over 25 years of sales and management experience in the industrial battery industry, representing safety and compliance products in the datacenter, utility, and telecommunications applications. Jeff is an active member of the IEEE Power & Energy Society and is the current chair of working group 1578 in the Energy Storage and Stationary Battery Committee (ESSB). Jeff is also a member of several other IEEE working groups including alternative energy storage technologies and the nuclear working group. He has presented standby power system Environmental Health & Safety training to engineering, architect and OEM manufacturing firms and delivered solutions training to end users and specifying engineers.