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A battery storage power station, or battery energy storage system (BESS), is a type of energy storage power station that uses a group of batteries to store electrical energy. Battery storage is the fastest responding dispatchable source of power on electric grids, and it is used to stabilise those grids, as battery storage can transition from standby to full power in under a second to deal with grid contingencies.[1]

Battery storage power stations are generally designed to be able to output at their full rated power for several hours. Battery storage can be used for short-term peak power[2] and ancillary services, such as providing operating reserve and frequency control to minimize the chance of power outages. They are often installed at, or close to, other active or disused power stations and may share the same grid connection to reduce costs. Since battery storage plants require no deliveries of fuel, are compact compared to generating stations and have no chimneys or large cooling systems, they can be rapidly installed and placed if necessary within urban areas, close to customer load.

As of 2021, the power and capacity of the largest individual battery storage power plants is an order of magnitude less than that of the largest pumped-storage power plants, the most common form of grid energy storage. For example, the Bath County Pumped Storage Station, the second largest in the world, can store 24GWh of electricity and dispatch 3GW while the first phase of Vistra Energy's Moss Landing Energy Storage Facility can store 1.2GWh and dispatch 300MW.[3] However, grid batteries do not have to be large, a large number of smaller ones can be widely deployed across a grid for greater redundancy and large overall capacity.

As of 2019, battery power storage is typically cheaper than open cycle gas turbine power for use up to two hours, and there was around 365 GWh of battery storage deployed worldwide, growing rapidly.[4] Levelized cost of storage (LCOS) has fallen rapidly, halving in two years to reach US$150 per MWh in 2020,[5][6][7] and further reduced to US$117 by 2023.[8] Additionally, annualized capital costs varies by which battery chemistry used for storage, but annualized capital costs of $93/kWh could be realized with Lithium iron phosphate by 2020.[not verified in body]

For safety and security, the actual batteries are housed in their own structures, like warehouses or containers. As with a UPS, one concern is that electrochemical energy is stored or emitted in the form of direct current (DC), while electric power networks are usually operated with alternating current (AC). For this reason, additional inverters are needed to connect the battery storage power plants to the high voltage network. This kind of power electronics include gate turn-off thyristor, commonly used in high-voltage direct current (HVDC) transmission.

Most of the BESS systems are composed of securely sealed battery packs, which are electronically monitored and replaced once their performance falls below a given threshold. Batteries suffer from cycle ageing, or deterioration caused by charge-discharge cycles. This deterioration is generally higher at high charging rates. This aging cause a loss of performance (capacity or voltage decrease), overheating, and may eventually lead to critical failure (electrolyte leaks, fire, explosion). Sometimes battery storage power stations are built with flywheel storage power systems in order to conserve battery power.[13] Flywheels may handle rapid fluctuations better than older battery plants.[14]

Lead-acid batteries are first generation batteries are generally used in older BESS systems.[16] Some examples are 1.6 MW peak, 1.0 MW continuous battery was commissioned in 1997.[17] Compared to modern rechargeable batteries, lead-acid batteries have relatively low energy density. Despite this, they are able to supply high surge currents. However, non-sealed lead-acid batteries produce hydrogen and oxygen from the aqueous electrolyte when overcharged. The water has to be refilled regularly to avoid damage to the battery; and, the inflammable gases have to be vented out to avoid explosion risks. However, this maintenance has a cost, and recent batteries such as Li-ion batteries do not have such an issue.

Lithium-ion batteries are designed to have a long lifespan without maintenance. They generally have high energy density and low self-discharge.[18] Due to these properties, most modern BESS are lithium-ion-based batteries.[19]

Examples of BESS fire accidents include 23 battery farm fires in South Korea in 2017 to 2019,[22] a Tesla Megapack in Geelong,[23][24] the fire and subsequent explosion of a battery farm in Arizona,[21] and the cooling liquid short circuiting fire at the Moss Landing LG battery farm.[25][26]

By 2024, the Lithium iron phosphate (LFP) battery has become another significant type for large storages due to the high availability of its components and high safety compared to nickel-based Li-ion chemistries.[28] As an evidence for long-term safe usage, an LFP-based energy storage system was chosen to be installed in Paiyun Lodge on Mt. Jade (Yushan) (the highest alpine lodge in Taiwan). Up to now, the system still operates safely since 2016.[29]

Battery storage systems may be active on spot markets while providing systems services such as frequency stabilization.[31] Arbitrage is an attractive way to benefit from the operating characteristics of battery storages.

In 2010, the United States had 59 MW of battery storage capacity from 7 battery power plants. This increased to 49 plants comprising 351 MW of capacity in 2015. In 2018, the capacity was 869 MW from 125 plants, capable of storing a maximum of 1,236 MWh of generated electricity. By the end of 2020, the battery storage capacity reached 1,756 MW.[83][84] At the end of 2021, the capacity grew to 4,588 MW.[85] In 2022, US capacity doubled to 9 GW / 25 GWh.[86]

As of May 2021, 1.3 GW of battery storage was operating in the United Kingdom, with 16 GW of projects in the pipeline potentially deployable over the next few years.[87] In 2022, UK capacity grew by 800 MWh, ending at 2.4 GW / 2.6 GWh.[88] Europe added 1.9 GW, with several more projects planned.[89]

In 2020, China added 1,557 MW to its battery storage capacity, while storage facilities for photovoltaics projects accounting for 27% of the capacity,[90] to the total 3,269 MW of electrochemical energy storage capacity.[91]

There is a lot of movement in the market, for example, some developers are building storage systems from old batteries of electric cars, where costs can probably be halved compared to conventional systems from new batteries.[92]

Battery storage technologies are essential to speeding up the replacement of fossil fuels with renewable energy. Battery storage systems will play an increasingly pivotal role between green energy supplies and responding to electricity demands.

Battery storage, or battery energy storage systems (BESS), are devices that enable energy from renewables, like solar and wind, to be stored and then released when the power is needed most.

For example, the UK has the largest installed capacity of offshore wind in the world, but the ability to capture this energy and purposefully deploy it can increase the value of this clean energy; by increasing production and potentially reducing costs.

Every day engineers at National Grid and electricity grids worldwide must match supply with demand. Managing these peaks and troughs becomes more challenging when the target is to achieve net zero carbon production. Fossil-fuel fired plants have traditionally been used to manage these peaks and troughs, but battery energy storage facilities can replace a portion of these so-called peaking power generators over time.

Intelligent battery software uses algorithms to coordinate energy production and computerised 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.

With the next phase of Paris Agreement goals rapidly approaching, governments and organizations everywhere are looking to increase the adoption of renewable-energy sources. Some of the regions with the heaviest use of energy have extra incentives for pursuing alternatives to traditional energy. In Europe, the incentive stems from an energy crisis. In the United States, it comes courtesy of the Inflation Reduction Act, a 2022 law that allocates $370 billion to clean-energy investments.

The best way to get a sense of the opportunities associated with BESS is to segment the market by the applications and sizes of users. There are three segments in BESS: front-of-the-meter (FTM) utility-scale installations, which are typically larger than ten megawatt-hours (MWh); behind-the-meter (BTM) commercial and industrial installations, which typically range from 30 kilowatt-hours (kWh) to ten MWh; and BTM residential installations, which are usually less than 30 kWh (Exhibit 1).

Customers of FTM installations are primarily utilities, grid operators, and renewable developers looking to balance the intermittency of renewables, provide grid stability services, or defer costly investments to their grid. The BESS providers in this segment generally are vertically integrated battery producers or large system integrators. They will differentiate themselves on the basis of cost and scale, reliability, project management track record, and ability to develop energy management systems and software solutions for grid optimization and trading.

C&I has four subsegments. The first is electric vehicle charging infrastructure (EVCI). EVs will jump from about 23 percent of all global vehicle sales in 2025 to 45 percent in 2030, according to the McKinsey Center for Future Mobility. This growth will require rapid expansion of regular charging stations and super chargers, putting pressure on the current grid infrastructure and necessitating costly, time-consuming upgrades. To avoid this, charging station companies and owners may opt to put a BESS on their properties. Partnerships have already formed between BESS players and EV producers to build more EVCI, including in remote locations.

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