Battery Energy Storage System (BESS): Benefits, Types and Applications

THE ADVANTAGES OF BATTERY ENERGY STORAGE SYSTEMS

Battery energy storage systems (BESS) offer several compelling benefits, positioning them as an increasingly integral component of our energy landscape. These advantages include:

1. Grid Stabilization

BESSs have the ability to rapidly absorb or release electrical power, providing essential services for balancing power supply and demand, stabilizing the grid, and maintaining a consistent frequency.

1. Renewable Energy Integration

BESSs play a crucial role in the integration of renewable energy sources such as wind and solar. They can store excess energy generated during periods of high production and release it when demand surpasses production. This addresses the intermittent nature of renewable sources, enhancing their reliability and usability.

1. Peak Shaving

Storing energy during periods of low demand and releasing it during high-demand periods enables a BESS to mitigate electricity demand on the grid during peak hours. This 'peak shaving' not only reduces the reliance on expensive peaker plants, often fueled by fossil fuels, but also brings about cost and environmental benefits.

1. Energy Arbitrage

The ability to store energy when prices are low and release it during peak pricing allows a BESS to engage in energy arbitrage, potentially resulting in significant cost savings or the creation of additional revenue streams.

1. Backup Power

A BESS serves as a reliable source of backup power during a power outage, enhancing energy resilience and reliability for residences, businesses, and critical infrastructure.

1. Grid Independence and Self-Consumption

A BESS promotes greater energy self-sufficiency for homes and businesses equipped with their own renewable energy sources, such as rooftop solar panels. By storing excess power generated on-site, they can reduce reliance on the grid and optimize the efficient use of generated power as needed.

1. Support for Electric Vehicle Charging

In response to the growing popularity of electric vehicles (EVs), integrating a battery energy storage system with charging stations ensures fast charging without overburdening the power grid. By storing electricity during off-peak hours and supplying it during peak usage, a BESS enhances the charging infrastructure. Additionally, incorporating a BESS into an EV charging station installation extends available capacity and significantly lowers demand charges.

Utilizing a BESS offers a comprehensive solution to many challenges currently faced by the energy mix.

TYPES OF BATTERY ENERGY STORAGE

Various battery technologies find application in battery energy storage, and the following provides an overview of the most prevalent options.

Lithium-Ion Batteries

The widespread adoption of lithium-ion batteries in energy storage systems is attributed to their remarkable energy density, efficiency, and extended cycle life. The primary chemistries used in energy storage systems are LFP or LiFePO4 (Lithium Iron Phosphate) and NMC (Lithium Nickel Manganese Cobalt Oxide).

Reasons for the Popularity of Lithium-Ion

Lithium-ion batteries stand out as the preferred choice due to their high energy density, prolonged lifespan, and efficient charge/discharge capabilities. They exhibit a low self-discharge rate and require minimal maintenance. Several factors contribute to the dominance of lithium-ion batteries in energy storage systems:

High Energy Density

The remarkable energy density of lithium-ion batteries allows them to store a substantial amount of energy within a compact space. This characteristic makes them well-suited for applications where space is limited, such as in electric vehicles or energy storage systems.

Efficiency and Charge/Discharge Rates

Lithium-ion batteries exhibit high efficiency in both charging and discharging processes, capable of handling relatively high rates for both. This feature makes them well-suited for applications requiring rapid energy discharge or storage.

Long Lifespan and Cycle Durability

Compared to many other battery technologies, lithium-ion batteries boast a prolonged lifespan and exceptional durability across numerous charge-discharge cycles. This longevity contributes to their cost-effectiveness over their operational lifetime.

Proven Technology

Lithium-ion technology stands as a mature and well-understood choice, making it less risky compared to newer, less-established technologies.

Despite these advantages, challenges like the need for sophisticated battery management systems to prevent overheating and maintain optimal battery health exist for lithium-ion batteries. Selecting a reliable supplier is crucial when considering lithium-ion-based energy storage systems.

Lead Acid Batteries

Lead acid batteries, a well-established technology with a long history, find common use in applications where frequent cycling isn't necessary, such as jump-starting vehicles or providing emergency backup power.

These batteries are known for their reliability, affordability, and widespread availability. They boast high power delivery capabilities. Nonetheless, when compared to lithium-ion batteries, lead acid batteries exhibit lower energy density and a shorter usable lifespan, especially during deep cycling. Additionally, they necessitate regular maintenance to sustain performance and can pose environmental hazards if not correctly recycled.

COMMERCIAL, RESIDENTIAL & UTILITY-SCALE BATTERY ENERGY STORAGE

Battery energy storage systems serve diverse applications, spanning residential, commercial, and utility scales, each catering to distinct needs, capacities, and functions.

Residential Battery Energy Storage

In the residential sector, battery storage typically ranges from 5 to 15 kWh, serving as a means to offset peak usage periods or offer backup power during outages. Often integrated with rooftop solar installations, these systems enable homeowners to store surplus solar energy for use during nighttime or cloudy days. Residential battery energy storage ensures a household has stored solar power or emergency backup when required.

Commercial Battery Energy Storage

Commercial energy storage systems, larger in scale ranging from 30 kWh to 2000 kWh, are deployed in businesses, municipalities, multi-unit dwellings, and various commercial applications. These systems bring about cost savings by mitigating demand charges, strategically shifting loads from high on-peak electric prices to lower off-peak prices, providing backup power, and facilitating business participation in demand response programs.