Battery Energy Storage Systems
Battery Storage
Battery storage, or battery energy storage systems (BESS), are devices that enable energy to be stored and then released when the power is requested or most needed. Batteries are an essential component in the global energy framework, enabling the integration of renewable sources into the grid. Batteries play a pivotal role in ensuring grid stability and resilience by effectively balancing supply and demand. Batteries also provide critical backup power during emergencies and aid utilities in managing peak demand by storing surplus energy during off-peak hours. Global installed battery storage capacity has grown exponentially over the past decade. According to the International Energy Agency (IEA), this capacity surged from 1 gigawatt (GW) in 2013 to over 85 GW in 2023. Notably, 40 GW were added in 2023 alone, doubling the amount added in 2022. This surge in investment correlates with the adoption of supportive policies, advancements in power market designs and expanding opportunities for profitable battery storage operations, driven by higher levels of renewable energy penetration. Intelligent battery software uses algorithms to coordinate energy production and computerized control systems are used to decide when to store energy or to release it to the grid. Energy is released from the battery storage system during times of peak demand, keeping costs down and electricity flowing.
Battery storage is becoming increasingly vital for balancing intermittent renewable generation and maintaining grid stability. Its economics are particularly attractive due to rising power prices, increased price volatility from renewables and additional revenue streams from ancillary services and capacity markets.
Storage Combines Energy Security with Savings
Improve Reliability & Resilience
Battery energy storage systems can supply backup power during electricity disruptions and can be scaled to an entire building or the most critical components of an organization or business.
Storage provides flexibility for the grid, to ensure uninterrupted power to consumers, whenever and wherever the energy is needed. This flexibility is critical to both reliability and resilience. As the cost of outages continues to rise, the value of enhanced reliability and improvements in resilience also increases.
Adding battery storage systems can vastly increase levels of energy resiliency, allowing businesses to run facilities even in case of a utility electricity outage. This is essential for users who rely on a continuous supply of electricity, such as businesses with 24/7 operations, hospitals, cold storage facilities, schools, and community centers.
Energy storage is an enabling technology. When the sun is not shining for solar generation, a commercial energy storage system can support energy needs. When demand shifts and baseload resources cannot react quickly enough, energy storage can support those energy needs.
Time of Use Arbitrage
The hours of a day (or 15-minute interval meter data) are often priced differently by utility companies, especially for commercial and industrial customers. Electricity rates can vary significantly between the morning, afternoon, and evening hours, leaving businesses with the financial risk of fluctuating energy market costs. Commercial battery storage enables a customer to save excess electricity produced by their solar system and then use it to power their loads when utility electricity is at a premium. This also allows facilities to make the most of time-of-use pricing and reduce tariff structure change risk to electricity cost.
Demand Reduction or Peak Load Shaving
Utility companies impose potentially costly “demand charges” based on a customer’s highest electricity usage during the billing cycle or peak usage time of day. Commercial users can “shave” their maximum utility power electricity demand, and reduce demand charges, by using stored battery energy to supplement the electricity generated by their solar system.
While energy efficiency or solar can reduce total electricity consumption, these benefits do not always coincide with a building’s peak use. Commercial energy storage systems, especially those paired with intelligent software, can track a facility’s load, and reduce demand charges by dispatching battery power during periods of peak demand, effectively “flattening” the load.
Participation in Demand Response
Demand response for commercial and industrial facilities traditionally involves ratcheting down usage at times of peak demand. Energy storage can enable participation in demand response markets without affecting on-site energy use or operations. By responding to utility price signals, storage systems can increase financial return from participating in demand response programs, while also benefiting the grid overall.
Support EV Charging Needs
Reduce Environmental Impacts
Energy storage has many environmental benefits that can make it a valuable tool for meeting sustainability goals. Energy storage enables electricity to be saved for a later, helping the grid to better integrate renewable energy. This creates efficiencies and capabilities for the electric grid—including the ability to reduce greenhouse gas emissions. Energy storage can help integrate added solar and distributed energy resources by increasing grid flexibility and improve the efficiency of the grid (e.g., reducing the need for building new pollution-emitting peak power plants). As the energy supply mix gets cleaner with low and no-carbon resources, energy storage helps that supply mix evolve more easily and reliably.
A key benefit of energy storage paired with a commercial solar system is that the electricity is emission-free, making the combined system eligible for federal investment tax credits.
BESS Engineering, Procurement, and Construction (EPC) Capabilities
As we look to the future, the continued advancement and deployment of battery technologies will be instrumental in driving the transition to a more sustainable and resilient energy system.
Integrating battery storage or siting a battery project can present some challenges, spanning market, economic and grid infrastructure factors. These challenges include cost considerations, scalability and capacity requirements, adherence to safety and reliability standards, grid compatibility, regulatory complexities and environmental impact assessments. To navigate these complexities effectively, Core Development Group leverages its experience with the stages of battery siting and battery storage project development. Core Development Group offers complete end-to-end BESS Engineering, Procurement, and Construction (EPC) capabilities to complete any energy storage project.