Types of Applications for BESS And The Benefits of Incorporating BESS into Your Solutions

Battery energy storage systems (BESS) are advanced energy storage solutions that store electrical energy for later use. They can be recharged when there is an excess supply of electricity, often at lower costs, or when intermittent renewable energy sources, such as solar or wind, are generating power. BESS can then discharge the stored energy to provide a dedicated power supply, support microgrids or supplement the general grid during periods of high demand or when electricity prices are elevated.

This flexibility enhances grid stability, optimizes energy costs, and supports the integration of renewable energy sources. They can also be metered out for dedicated supply, microgrid or general grid use when the grid requires support if microgrid demand rises or the price is higher.

BESS investments offer grid problem compensation capabilities that add robustness to grid networks, integrate renewable and low-reliability energy sources, improve energy utilization, enhance grid resilience, reduce diesel use and meet the growing demand for reliable and sustainable energy.

BESS systems can be used in a variety of grid positions that differentiate the applications, related to some degree to which side of a billing meter the system sits (in front/on the grid side or behind on the client side):

• Bess used in large-scale grid support generally sits within a clearly defined microgrid that receives AC power from the grid, converts it to DC, and stores it for later use. This can be returned to the grid or local use as AC power from an in-built inverter. These systems will typically meter the uptake from the grid (and its pricing) and the delivery to the grid (and its higher pricing), where the differential AND the support service in stabilization delivers a profit.

• Backup power systems will operate similarly but exist on the customer side of the charge process or meter, substituting for grid demand at the site when the grid fails or peak shaving is happening.

• BESS associated with intermittent sources (wind, solar, etc.) will operate similarly, but receive DC or AC from renewable sources, store it in the battery elements and meter it back to the grid as demand requires. Such a system will tend to charge as a virtual generator through a metering system that measures the delivered power.

BESS installations can vary widely in scale as listed and described below:

• Residential scale: Such installations are typically designed to provide backup power, optimize after-meter solar energy consumption, and reduce homeowners' electricity bills. Capacity typically ranges from a few kilowatt-hours (kWh) to tens of kWh. They consist of a battery pack, inverter and a basic energy management system.

• Commercial and industrial scale: These installations serve higher-demand factory, hospital and data-center facilities, providing backup power, peak shaving, demand response, frequency keeping, intermittent source smoothing and generator energy (diesel) cost savings. Capacities range from tens of kWh to several megawatt-hours (MWh). They are similar to residential systems, with larger batteries and more-sophisticated controls.

• Community scale: These typically serve multiple homes or buildings as a microgrid within a community or neighborhood. The capacity is typically between a few hundred kWh to several MWh. They are technically very similar to commercial and industrial systems, except they generally serve multiple users with support for or backup of grid services.

• Utility Scale: These installations are deployed by utilities to provide grid services such as frequency regulation, voltage support and renewable energy integration. They are often sited at the ends of long supply lines that are not commercially viable for upgrade, and they commonly support remote diesel generator systems. Their capacity can range from several MWh to hundreds of MWh, depending on the nature of the grid region they are serving. They use large battery arrays, power conversion systems and more-advanced control systems.

• Grid-scale: These are the largest and most complex BESS installations. They are deployed at the transmission or distribution level, in active support of grid stability and system resilience. Capacities range from hundreds of MWh to several gigawatt-hours (GWh) and they use very large battery arrays, high-power capacity inverters and sophisticated control and monitoring systems.

• Off-grid and remote applications: These installations are typically built at any required scale and provide power in remote and/or off-grid areas/facilities at which access to the grid is limited. They range from small systems for homes to much larger systems for communities or industrial facilities. They are built to suit the scale of the application.

The range of BESS installations is built to cater to various demand levels and needs – from homeowners integrating solar panels to utilities requiring enhanced grid stability.

BESS BENEFITS

BESS offers numerous benefits, across various sectors of the economy, far beyond the basic grid support functions it fulfills. Some of its benefits are listed below:

• Provides grid stabilization services in macro and transient response. Balancing supply and demand smoothes out the destabilizing fluctuations typical of renewable energy generation which greatly improves slower response grid reliability.

• Integrates intermittent renewable energy sources like solar, tidal, wave and wind power into the grid by buffering oversupply for later use. This can be served by removing the requirement for a thermal spinning reserve that must otherwise be ready to take up the slack.

• Reduces electricity costs by systematic arbitrage of energy prices. Storing energy during off-peak, low-price periods and providing it during high-price periods can profitably alleviate strain on the grid during periods of high demand and reduce the need for expensive peaking power plants. Momentary and short-period peak pricing can increase by 10x and even 100x, offering significant returns for fast switchable supply/virtual generators.

• Provides backup power during grid outages or blackouts, ensuring uninterrupted operations for critical facilities.

• Supports the deployment of EV charging infrastructure by providing fast-charging capabilities and managing peak demand on the grid, improving the integration of EVs into the grid without overloading existing infrastructure.

• Helps manage peak demand on the grid by providing demand response services and ancillary services such as frequency regulation and voltage support.

• Helps to mitigate emissions by reducing reliance on fossil fuels and promoting the use of renewable energy sources. A clear beneficiary with easily measured gains is any grid that uses diesel generators for peak load. This is among the most expensive electricity, and offsetting/displacing even minor usage has a high-cost value.

KEY CLASSES OF BESS APPLICATIONS

Demand response

BESS installations can play a key role in demand response by providing rapid deployment capabilities to moderate (grid-supplied) electricity overconsumption in real time. During peak demand periods, BESS can discharge stored energy to satisfy grid demand, reducing strain on overstressed grid elements and offsetting high-cost peak demand charges. Importantly, BESS can charge using inexpensive electricity at off-peak (or high sun/wind) times, smoothing energy demand and lowering overall operational costs. This responsive capability enhances grid reliability, reduces the need for renewal of generative or supply infrastructure and enables consumers to participate in managing their energy consumption.

Frequency regulation

These systems are instrumental in frequency keeping, by responsively injecting or absorbing power as required. BESS can rapidly respond by consuming or discharging energy to impose balance on the supply. By providing bidirectional fast-response load/capacity, BESS reduces reliance on spinning reserve and fast-start thermal sources for frequency keeping, thereby lowering emissions. BESS’s key capability is enabling the grid to seamlessly and fully integrate renewable energy sources (transient and junk power) by buffering their variability.

Microgrids

BESS is an essential component in many microgrid installations, increasing adaptability and reliability. They stabilize microgrid operations by automatically balancing supply and demand, regulating frequency and mitigating voltage sag or rise. During grid outages, BESS provides an uninterruptible power supply (UPS), protecting critical loads. The smoothed integration of solar/wind energy supply can reduce thermal (diesel) usage considerably, by fully utilizing the renewables when required, rather than wasting power in real time, as it exceeds demand. BESS enables subtle peak shaving and load management strategies, optimizing energy usage and reducing overall power costs. These systems enhance the resilience, power, cost efficiency and sustainability of microgrid systems, enabling communities and facilities to achieve energy independence.

Grid firming

BESS installations can serve a pivotal role in grid firming and maintaining stable/reliable supply in both voltage and frequency terms. They provide grid support by taking up excess energy during reduced demand and injecting stored energy during peak demand, smoothing disruptive fluctuations. This maintains frequency and voltage, reducing the need for fast response thermal generation.

EV infrastructure support

BESS setups can offer effective support for EV charging infrastructure. Fast-charging capabilities require high power in surges, and BESS can moderate this peak demand, to ensure minimum disruption to the local grid during high-demand activities. BESS also offers backup power for EV charging stations during grid outages, ensuring less service interruption. This facilitates the increased adoption of EVs, contributing to a reduced-emission transportation network.

Green energy

BESS can significantly enhance green energy utilization by enabling the full integration of intermittent renewable sources. BESS stores surplus when solar, tidal, wave and wind are at high activity, addressing intermittent issues by taking up unused power for later use, thereby making these sources highly exploitable. BESS reduces reliance on thermal generation, reduces the need for spinning reserve, lowers emissions, and supports stability. They deliver optimized energy usage and reduce the need for peaking (thermal) power plants.

WHY INVEST IN BESS?

Investing in Battery Energy Storage Systems (BESS) offers exceptional flexibility for electricity grids. BESS smooths out supply to better match demand, mitigating instability and waste caused by oversupply and the intermittent nature of renewable energy sources like wind, solar, wave and tidal power. The key benefits of BESS include:

• Grid stabilization and anti-fragility: Enhances grid reliability and resilience.

• Renewable energy and variable power integration: Efficiently manage the integration of renewable energy sources.

• Peak shaving and cost savings: Reduces costs by managing peak demand.

• Backup power and grid resilience: Provides reliable backup power and enhances overall grid resilience.

• EV infrastructure support: Supports the growing demand for electric vehicle charging infrastructure.

• Demand response and load management: Optimizes load management and demand response.

• Energy independence and sustainability: Promotes energy independence and sustainable practices.

• Future-proofing: Offers competitive advantages in power distribution, cost and reliability.

Interested in more from Cummins? You might also like:

• In-Depth exploration of Cummins Microgrid testing lab, the Power Integration Center (PIC)

• What are battery energy storage systems?

• What is a microgrid and how microgrids work

• Benefits of microgrids, and why do businesses need them?