Battery Energy Storage Systems (BESS) are quickly emerging as a critical technology in the transition to 100% renewable energy. To better understand the drivers behind this growing trend, Bernd Kipping, Vice President Finance, Procurement and Innovation & Technologies, shares his insights on market trends and the future outlook for battery storage.
“This technology is a game-changer for the future of energy, and with the right support, we can make a carbon-free society a reality.”
How does battery storage work, and what are the key components making it so essential for modern energy management?
A Battery Energy Storage System (BESS) is made up of several key components that work together to store and deliver energy efficiently and reliably.
- Battery cells
The core of the system are the battery cells, which store electrical energy. These cells are grouped into modules and racks, and housed in standardized enclosures—typically 20-foot containers.
- Power Conversion System (PCS)
The Power Conversion System (PCS) is responsible for converting electricity between direct current (DC)—used by the batteries—and alternating current (AC)—used by the grid. This system enables two-way energy flow, allowing the batteries to charge and discharge.
- Transformer
The PCS can also be combined with the third major element, the transformer, which adjusts the voltage between the low voltage required by the batteries and the medium voltage needed to connect to the public grid.
- Software
These three key components are supported by software managing the safe and efficient technical and commercial operation, such as battery management system (BMS) and energy management system (EMS).
- Grid connection infrastructure
To fully integrate the BESS into the energy system, a substation is required. This includes for instance, switchgears for safety and control, step-up transformers to higher voltage levels such as 110 kV or higher and cable connections connect it to the public grid.
Once connected to the distribution or transmission grid, the BESS can be charged during times of excess supply and discharged when demand is high, helping to stabilize the grid and ensure a reliable power supply.
Read more about the advantages of battery systems
Key market trends driving BESS growth
What are the key market trends currently driving the demand for battery energy storage?
With the increasing share of renewables in the energy system driven by their cost competitiveness, the energy market experiences more volatile prices and requires flexible capacities to compensate for grid instabilities in short term. Battery energy storage systems can help to solve both challenges efficiently and, like PV plants, can be rapidly deployed in a decentralized system. Supported by the technology and cost improvements of battery cells, battery energy storage systems will play a pivotal role, helping to stabilize the grid as well as reducing average power prices in the next years.
How does BESS support grid stabilization specifically?
The grid operates based on a balance between supply and demand. If for example supply exceeds demand, the grid frequency exceeds the balanced level of 50 Hertz, creating instability. BESS helps to stabilize the grid, particularly in the short term, by storing energy when there is excess supply and discharging it when demand exceeds supply, maintaining the grid at the optimal frequency.
Future outlook for BESS
How do you see the future of battery systems evolving in the next three to five years?
Over the next few years, we’ll see increased demand for renewable energy, which will lead to wider adoption of battery systems We are also expecting more low or negative electricity prices due to increased renewable generation.
The combination of wind, solar and batteries is undoubtedly the most efficient and cost-effective solution for a carbon-free society. Accordingly, we can provide more clean baseload energy profiles while helping to stabilize the grid. With political will and support, energy prices could drop significantly while ensuring a green energy supply.
“Chint Solar wants to make green energy available to everyone, everywhere. With the addition of battery systems, our ambition is to add ‘anytime’.”
Want to know more about Chint Solar’s projects?
Do you have questions about BESS or want to know more about our approach? We are happy to answer your questions. Feel free to contact us for more information or to share your ideas with us. Together we will ensure that we make a positive impact on the energy transition.
