A battery storage system offers consumers energy resilience, enabling them to avoid and adapt to unanticipated power interruptions.
FREMONT, CA: The emergence of cell phone and computer battery technology has radically changed how batteries are used. Along with rapidly advancing electric vehicle technology, larger-scale storage batteries are helping homeowners, and business owners improve the cost-effectiveness and competitiveness of intermittent renewable energy resources like solar and wind.
Electric utilities industry stakeholders identify the value of storing energy when it is unavailable from those resources and are rapidly expanding programmes to increase the deployment of behind-the-metre (BTM) battery storage.
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Benefits of BTM Battery Storage
An advantage of battery storage that consumers and utilities share is energy resiliency, or the ability to avoid or adapt to unanticipated power disruptions. All consumers harden their electric supply and reduce power interruptions with BTM battery storage. Utilities achieve cost-effective resiliency, allowing them to defer or avoid larger capital investments. Regulators point to various advantages for their optimism about the potential of BTM battery energy storage.
These benefits include reducing energy bills by discharging their batteries during peak demand hours or implementing energy arbitrage with battery-only installations. Independent system operators (ISOs) can use BTM storage for additional energy services such as frequency and voltage support because of their ability to respond quickly to system needs. Battery energy storage systems (BESS) coupled with renewable energy supplies like solar and wind can be scheduled to offset higher carbon emissions. A growing battery storage market propels economic and workforce development as new technologies and installers emerge.
Regulators, utilities, and BESS market developers recognise the industry's continued growth and that expanding those benefits requires incentives to broaden the deployment of battery storage. Upfront incentives cover installation costs and create traction and interest in battery technology. Solar developers can effectively bundle upfront incentives with investment tax credits by pairing battery storage with solar. Performance incentives for demand response participation have become an efficient way to offer sustained benefits to battery owners and operators. This provides consumers with BESS an annual revenue stream while grid peak and emissions reduction benefits flow to all consumers. Many utility initiatives have enhanced incentives targeted at specific segments, such as low-income and underserved markets, driving towards equity.
Furthermore, technology is also paving the way. For example, lithium-ion (LI) batteries have become a critical catalyst in the growth of BESS due to their scalability, reasonably better round-trip efficiencies, and guaranteed battery life. Irrespective of expenses, long-duration flow batteries have also emerged in the BESS space. Flow batteries are perfect for larger battery storage applications, providing up to 12 hours of backup compared to four hours for a typical LI battery and having minimal capacity degradation over a 25-year operating life.
As countries, utilities, and regulators continue to establish targets for BESS deployment and offer consumers incentives to purchase BESS, technology development will continue to advance creative incentive programme design. With this, a cleaner, more reliable grid system can be efficiently supported by a renewable energy supply.