The worldwide energy shift is driving the integration of battery storage into power grids and transportation networks. Battery energy storage systems (BESS)—that employ batteries to store and distribute power—are gaining traction as an alternate method for grid support and transmission-related services, such as voltage, frequency management, and grid congestion relief.
Significantly, they aid in mainstreaming non-dispatchable renewable energy sources like solar and wind. Moreover, battery storage makes selling energy back to the grid simpler. Adapting various storage technologies to make intermittent renewable energy dispatchable is rapidly evolving, increasing complexity and up-front expenses that the public sector needs help to solve.
Governments need more private sector knowledge and financial resources to speed the intelligent deployment of battery storage systems. Developing markets must embrace various public-private partnerships (PPPs) to fully benefit from the technological advancements that BESS may contribute to transitioning to a cleaner, more sustainable future.
While contemplating BESS, governments and power utilities must take the following into account:
Depending on the purpose and context, the size and kind of BESS will vary, such as on-grid versus off-grid or integration with renewable energy power plants versus freestanding “utility-scale” units.
Revenue models and contractual arrangements
Regulatory treatment, including license and participation in the market
Life-cycle costing issues such as operations and maintenance, decommissioning and recycling, and risk and responsibility sharing between public and private partners to maximize the bankability of a project.
The exponential rise of BESS technology has primarily occurred in the world’s developed regions. Why? Since there is no “route to market” for many of the services batteries provide in less-developed markets, such as an alternative to costly peaker capacity and grid stability maintenance. In essence, it is difficult for less-developed electricity markets to recognize the value of the vital auxiliary services that BESS may offer. A standalone BESS PPP designed to ensure the stability of a national or even regional power system is sometimes viewed as a more reliable and cost-effective alternative to a publically financed network expansion.
The future development of BESS will incorporate various unique features, such as e-mobility and battery optimization for electric vehicles. It will utilize price arrangements that incentivize charging during periods of low electricity demand. A notion known as Vehicle-to-Grid (or V2G) allows combined car batteries to be used as de facto battery systems in the larger electricity market, offering supplementary services to power networks.
