Battery Energy Storage Systems (BESSs) have proven to be an essential technology for companies navigating an increasingly complex and volatile energy landscape. With 92% of businesses saying rising energy costs and instability impact profitability and competitiveness, there is a clear need for reliable, clean energy sources at affordable prices.

As enterprises strive to meet decarbonization targets, BESS solutions provide substantial advantages over traditional energy strategies. This technology provides companies stability, flexibility, and cost-efficiency for renewables, a commodity with unpredictable supply. In this article, ABI Research Vice President of End Markets/Verticals, Dominique Bonte, explores BESS's diverse benefits and applications, showing why it is an essential investment for any future-minded organization.

Why Battery Energy Storage Is Crucial

Global sustainability initiatives, such as the European Union’s (EU) plan to be climate-neutral by 2050, require enterprises and industries to reduce their carbon footprints. Naturally, businesses will first look at their energy sources as a key culprit in Greenhouse Gas (GHG) emissions. This serves as an incentive to invest in on-site renewables like solar and wind.

Unfortunately, these clean energy sources are intermittent in nature, posing challenges to power stability. Renewables are also reliant on the climate in which a facility/work environment is located. While a manufacturing facility in the vibrant deserts of Arizona would significantly benefit from on-site solar panels, the same cannot be said for a site in the cloudy biome of the United Kingdom. Although solar panels can still absorb some energy on cloudy days, their efficiency is drastically reduced.

All this is to say renewable energy must be stored when readily accessible and used for later consumption. Battery Energy Storage Systems (BESSs) are the key conduit for making this happen. During peak times, the BESS stores the excess energy that a company does not need at the moment. That way, the company can use the energy captured by a BESS when the sun stops shining the next day or the wind isn’t blowing.

Key Benefits of Battery Energy Storage

Buffering Renewable Energy Fluctuations

A BESS ensures continuous power supply by storing surplus energy from sources like solar, which can then be used when renewable energy is unavailable. This capacity to buffer renewable energy enhances the usability of solar microgrids, enabling them to continuously power Electric Vehicles (EVs), heating, and other equipment. A BESS can improve the usability of renewable energy sources, potentially doubling the usable capacity of solar microgrids, increasing the self-consumption of solar electricity for charging EVs, heat pumps, or other electric equipment, and accelerating the Return on Investment (ROI) of Commercial & Industrial (C&I) Photovoltaic (PV) assets.

Energy Cost Savings and Pricing Control

BESS solutions help businesses cut energy costs by optimizing on-site renewable resources or purchasing and storing energy when prices are low. Stored energy can then be used when rates spike, offering price stability in an often volatile energy market. Additionally, excess stored energy can be sold back to the grid when prices peak, providing another avenue for financial returns while contributing to energy grid stability.

Supporting Sustainability Goals

As environmental regulations tighten, BESSs play a crucial role in helping companies meet sustainability targets by enhancing renewable energy use. Through optimized energy storage, companies reduce their reliance on fossil fuels, lowering their carbon footprint and promoting greener operations. This sustainable approach helps enterprises align with decarbonization goals and avoid regulatory penalties.

Ensuring Reliable Energy Supply

For mission-critical operations, an uninterrupted power supply is essential. A BESS provides backup during grid failures, protecting operations from costly downtime. By offering reliable energy storage, a BESS also supports complex energy networks that may experience occasional disruptions. In essence, BESS solutions enhance operational resilience by ensuring that energy is consistently available when it’s most needed.

Building Flexibility and Independence

The energy market is subject to disruptions from both geopolitical and environmental factors, making energy independence highly valuable. Battery energy storage allows companies to establish self-sufficient microgrids, reducing dependency on public energy grids. By fostering greater energy flexibility and self-sufficiency, enterprises can quickly adjust to market changes. This, in turn, ensures cost control and operational stability.

Stabilizing the Grid with Distributed Storage

Battery energy storage is also beneficial for the public grid. By balancing power supply and demand, a BESS reduces strain on public grids during peak times, ensuring consistent power for all users. This distributed energy approach is essential for long-term grid stability and is particularly beneficial during events like heat waves, when energy demand can spike.

Recommendations for Integrating a BESS

To maximize the benefits of a BESS, enterprises should strongly consider the following best practices:

• Integrate with Broader Energy Systems: Include the BESS in a comprehensive smart energy setup, such as Energy Management Systems (EMSs), EV charging, Vehicle-to-Grid (V2G) charging, renewable assets, and energy purchasing strategies. This integration helps create a unified energy management strategy that optimizes energy use across all operations.
• Leverage Advanced Technologies: Incorporate Artificial Intelligence (AI), the Internet of Things (IoT), and Digital Product Passports (DPPs) to enhance BESS performance and longevity. These technologies enable predictive maintenance, optimize battery lifecycles, and streamline recycling efforts.
• Select Reliable Suppliers: With energy requirements constantly evolving and being a dynamic market, it is vital to choose suppliers that offer ongoing technical support, upgrades, and customization options. This ensures your BESS remains effective and up-to-date, delivering long-term value.

Interested in learning more about battery energy storage? Check out the following content from ABI Research:

• Battery Energy Storage for Enterprises and Industries: Renewables Buffering, Pricing Volatility Mitigation, and Power Resilience (Research Report)
• CarbonScape Invests US$18 Million in Biographite Production in Europe and the United States to Tackle Material Scarcity for EVs and Battery Storage (Analyst Insight)
• Smart Energy For Enterprises & Industries: Trends, Challenges, And Insights You Need to Know (Whtepaper)

About the Author 

  Dominique Bonte, Vice President, Verticals/End Markets

Dominique Bonte, Vice President, Verticals & End Markets, leads ABI Research's end markets research team, which covers industrial and manufacturing, supply chain and logistics, fleet management and commercial telematics, automotive and smart mobility, electric vehicles, smart homes and buildings, and smart urban infrastructure. His personal focus areas include smart cities solutions such as digital twins, urban IoT platforms and connectivity, Intelligent Transportation Systems (ITS), smart roadside infrastructure and V2I, electrification and sustainability, smart rail, and cooperative mobility.