Battery Energy Storage System: How Does It Works
A system with a group of batteries (and some other components) used to store energy for later use is commonly known as a Battery Energy Storage System (BESS). This system enables you to store energy in different ways.
In case of a power outage or power failure from the local grid due to bad weather conditions or other similar issues, BESS is a great way to power up your residential or commercial appliances or equipment.
A battery energy storage system is not actually the complete replacement of the grid. However, it can provide you with short-term access to electricity when you don't have a supply from the grid. This innovative solution is a great alternative to using a noisy generator.
Battery energy storage has proven to be an excellent backup power tool in the renewable energy sector. It ensures the reliability and stability of consistent power during outages. It also mitigates the variability of different renewable energy sources.
How does a battery energy storage system work?
Energy storage simply means to save the captured energy for use when no electric supply is active from the grid. Before we go into the details of how exactly a BESS works, let's first look at what makes this system. Well, it consists of three major components, as given and explained below.
- Batteries: They are used to store energy for later purposes when a grid supply cuts off due to any potential reason. While charging, batteries take power from the local grid supply and store it for later use.
- Inverters: Batteries can store DC power, whereas you need AC power to operate residential or commercial appliances. To ensure right energy conversion at the right time, inverters are installed. An inverter converts the DC power of the battery into an AC power to make it available for usage.
- Energy Management Systems: These systems consist of sets of hardware and software components. They help us manage our energy use by distributing the flow of energy among the connected devices. It allows us to enhance energy-saving technologies, especially those that do not need higher investments.
Different BESS can have different types of energy storage batteries. As you know, batteries come with different chemistries, such as lithium-ion, lead-acid, and nickel cadmium.
In lithium-ion batteries, lithium ions move through the electrolyte between electrodes during the process of charging and discharging. On the other hand, a lead-acid battery uses lead and sulfuric acid to store and release energy. A nickel-cadmium battery uses metallic cadmium and nickel oxide hydroxide as electrodes and potassium hydroxide as an electrolyte to function.
The batteries available in a battery energy storage systemtake power directly from the power station, from the grid, or from any form of renewable energy source (such as PV panels) for charging and releasing the power (while discharging) when needed.
This system not only stores power for later use but also manages energy consumption when coupled with dedicated software. It uses advanced algorithms like Machine Learning (ML) and Artificial Intelligence (AI) to ensure better management of the stored energy. A BESS makes batteries deal with climate change and other similar issues effectively.
Types of battery energy storage systems
Well, a battery energy storage system is divided into two main types: residential and commercial. Let's look at what makes both different from each other and where they are installed.
1. Residential BESS
As the name depicts, it is a small-scale system of energy storage batteries. It is installed on homes or the user's premises, mostly with a solar energy system as a backup power source. It is also known as a Behind-the-Meter system.
The primary goal of a residential BESS is to provide homeowners with a stable electric supply, thereby cutting the cost of electricity bills. In areas where net metering is allowed, this system can supply the extra power to the grid, and homeowners can charge for that.
2. Commercial BESS
It is a large-scale system connected directly to the local grid, which is why it is used in industrial and commercial sectors. It is also called a Front-of-the-Meter system. This utility-scale battery energy storage system serves as a great alternative when building new power lines. At the same time, it helps solve network congestion problems.
A commercial BESS is perfect for peak demand management. For example, it can store energy during off-peak hours and supply it back during peak hours. This is how it can reduce costs for industries and organizations.
Key benefits of a battery energy storage system
This section lists the four potential benefits you can get from a battery energy storage system.
1. Energy independence
It keeps you away from depending on the local power grid all the time by storing backup power that you can easily use during power outages. This is how this system promotes energy independence.
2. Cost savings
This system enables you to store energy during low demand when the prices are lower and consume it during peak demand when the electricity prices are higher. This way, it helps residential and commercial users cut the cost of their utility bills greatly.
3. Renewable energy integration
A battery energy storage system can be paired with wind or solar energy to provide you with a consistent power backup source. As it reduces your dependence on fossil fuels, the emission of greenhouse gasses is reduced.
4. Grid reliability and peak shaving
It stabilizes the grid by storing energy when access power supply is available and gives it back to the grid when the demand is high. In addition, a BESS reduces the stress on the grid during peak hours by providing users with a second power source. This is how it prevents blackouts.
How to choose the right battery energy storage system?
If you are thinking of which system to choose, it all depends on your energy needs and other factors, such as capacity, usage patterns, compatibility with renewable energy, and the battery's lifespan. Let's look at these factors one by one.
1. Size and capacity of the system
The capacity of a system means how much energy or power it can store for later use. If you need a system for an organization, a set of batteries with long backups are preferred to use. On the other hand, if you want to install an energy storage system in your home, cost-effective batteries with relatively low backup (of a couple of hours) will work fine.
2. Energy needs and usage patterns
Determining your energy needs is necessary to know the right size of the system and its capacity. Look at how much energy you consume at home, office, or business. Don't forget to note peak power demands. Considering these things can help you choose the right energy storage system.
3. Compatibility with renewable energy sources like solar
See if the system is compatible with renewable energy sources such as PV panels. If you already have a solar electric system installed in your home or office, it would be difficult for you to add an energy storage system to it. Therefore, it is better to choose the energy storage system first and install it with the solar power system. Make sure they both are highly compatible.
4. Battery lifespan and warranty
Considering the life cycle of the energy storage system is crucial. It depends on the lifespan of the batteries. Choose batteries with a longer life cycle and warranty to ensure the system will work perfectly for years to come.
On average, good batteries, like lithium-ion, come with a 2-5 year lifespan. It can go up to 10 years or even 20 years in some cases. The lifespan of a battery depends on where you store it and the usage patterns. If you want to buy long-lasting batteries at a fair cost, find the desired product at Renogy.
Future of battery energy storage systems
The world's first battery was introduced in 1800. Though it was the first time it appeared on the scene, it had almost zero efficiency and lifespan. The research scientists continued to work on improving the lifespan and efficiency of batteries. Later in 1859, a rechargeable lead-acid battery was invented by Gaston Plante.
In 1899, the advanced version of the lead-acid battery (with nickel-cadmium chemistry) was introduced. This battery has many plus points compared to a lead-acid battery. However, the materials for a nickel-cadmium battery were costly. With further advancements in this technology, Akira Yoshino developed the first prototype of a lithium ion battery in 1976. It was commercialized in 1991.
Research on advancing battery technology is still being done. Some of the latest technologies you should be familiar with include solid-state batteries, graphene batteries, cobalt-free batteries, iron-air batteries, lithium-sulfur batteries, sodium-ion batteries, and zinc-based batteries.
According to a research study, the estimated battery market size in the US in 2023 was 16.9 billion US dollars. It was expected to grow at a CAGR of 13.8% between 2024 and 2030. The expected evaluation of the global battery market size in 2024 is 113.5 billion US dollars, with a compound annual growth rate of 8.2%. The estimate shows the global market will reach 250 billion US dollars by 2034.
FAQs about battery energy storage systems
What is the lifespan of a BESS?
The lifespan of a battery energy storage system is usually between 15 and 20 years. According to some experts, it can last up to 30 years if maintained properly. In terms of charge cycles, a BESS has the ability to manage between 6,000 and 10,000 cycles. However, it largely depends on your usage patterns. The more advanced, efficient, and long-lasting batteries a BESS has, the longer it will operate.
How much does it cost to have a battery energy storage system installed?
The cost of installing a BESS depends on different factors, such as the system’s capacity, location, incentives, and rebates from Government departments. Residential systems cost less compared to installing a commercial energy storage system. On average, per kWh cost of battery, BoS, installation, and maintenance is $300- $400, $50-$150, $50-$100, and $50-$100, respectively. All these costs add up to define the cost of the whole system.
What is the difference between BMS and BESS?
BMS is a part of BESS. The primary goal of a Battery Management System (BMS) is to protect cells from damage that mainly happens due to external short-circuiting, over current, under or over voltage, and high temperature. In comparison, a BESS consists of a set of batteries, inverters, and BMS to provide users with a long-lasting and highly efficient backup power source.
Do I need solar panels to use a BESS?
Though a BESS is mostly used with solar panels to store extra energy, it is not necessary. Nowadays, standalone BESS is becoming more and more popular as an independent solution for battery energy storage.
Conclusion
A battery energy storage system offers a wide range of benefits, including promoting energy independence and cutting the cost of electricity bills for both homeowners and businesses. In addition, a BESS has proven to be an excellent tool to store energy during off-peak hours and use it during peak hours. It is a great power source during outages and blackouts.
When BESS is coupled with renewable energy sources like PV panels, it minimizes pollution by reducing greenhouse gas emissions. This is one of the reasons this solution is gaining popularity in the US and worldwide. A system with energy storage batteries can save excess power to ensure there is no power wastage.
It does not matter whether you are a residential or commercial user, you should explore more about battery energy storage system solutions. They are extremely useful in both cases.
