The U.S. power grid is comprised of several energy sources from fossil fuels to nuclear energy to renewable energy sources. Battery Energy Storage Systems (BESS) balance the various power sources to keep energy flowing seamlessly to customers. We’ll explore battery energy storage systems, how they are used within a commercial environment and risk factors to consider.

What is Battery Energy Storage?

A battery is a device that can store energy in a chemical form and convert it into electrical energy when needed. 
There are two fundamental types of chemical storage batteries: 

(1) The rechargeable, or secondary cell 
(2) The nonrechargeable, or primary cell. 

They both discharge energy in a similar fashion, but only one of them permits multiple charging and discharging.

Battery energy storage systems are typically configured in one of two ways, depending on their intended application: 

(1) A power configuration 
(2) An energy configuration

In a power configuration, the batteries are used to inject a large amount of power into the grid in a relatively short period of time, which requires a high inverter-to-battery ratio. A typical application would be to simulate a gas turbine ramp-up for frequency regulation, spinning reserve, or black-start capacity.
In an energy configuration, the batteries are used to inject a steady amount of power into the grid for an extended amount of time. This application has a low inverter-to-battery ratio and would typically be used for addressing such issues as the California “Duck Curve,” in which power demand changes occur over a period of up to several hours; or shifting curtailed PV production to later in the day. BESS projects are increasing in popularity due to the fluctuating power supply from renewable energy power sources.

In an energy configuration, the batteries are used to inject a steady amount of power into the grid for an extended amount of time. This application has a low inverter-to-battery ratio and would typically be used for addressing such issues as the California “Duck Curve,” in which power demand changes occur over a period of up to several hours; or shifting curtailed PV production to later in the day. BESS projects are increasing in popularity due to the fluctuating power supply from renewable energy power sources.

In its simplest form, BESS is a technique for energy storage and subsequent reinjection back into the grid, or as backup power to a connected load demand source.

BESS mainly performs one or more of these specific tasks:

  • Provide voltage support for the transmission grid (e.g., when the actual grid voltage differs from the stated voltage).
  • Provide stability in response to grid power oscillations (e.g., system faults).
  • Help control the turbine ‘ramp rate’ (e.g., response to sudden change in wind speed or electrical demand).

Rechargeable Batteries and BESS

A rechargeable battery comprises one or more electrochemical cells. It is known as a ‘secondary cell’ because its electrochemical reactions are electrically reversible. Rechargeable batteries come in many different shapes and sizes, ranging from button cells to megawatt grid systems.
The batteries alternately store and discharge direct current (DC) electrical energy. The convertors change it to AC power, the Converter Transformer ‘steps up’ the alternating current (AC) voltage to match the desired output, the Control System coordinates the numerous processes taking place and the cooling system removes the intense heat generated by the DC/AC conversion.

One of the distinctive characteristics of the electric power sector is that the amount of electricity that can be generated is relatively fixed over short periods of time, although demand for electricity fluctuates throughout the day. Developing technology to store electrical energy so it can be available to meet demand whenever needed would represent a major breakthrough in electricity distribution. Helping to meet this goal, electricity storage devices can manage the amount of power required to supply customers at times when need is greatest, which is during peak load (demand). These devices can also help make renewable energy, whose power output cannot be controlled by grid operators, smoother and more easily dispatched.

BESS projects can also balance microgrids to achieve a match between generation and load. Storage devices can provide frequency regulation to maintain the balance between the network’s load and power generated, and they can achieve a more reliable power supply for high-tech industrial facilities.

Common types of rechargeable batteries

Why are BESS used?

The power grids of today and tomorrow are characterized by a high share of renewable energy sources. This leads to a massive fluctuating power injection, which needs to be balanced by battery energy storage systems
In its simplest form, BESS is a technique for energy storage and reinjection back into the grid, or as backup power to a connected load. Enhanced energy storage can provide multiple benefits to both the power industry and its customers.

Key Benefits of BESS:

  • Improved power quality and the reliable delivery of electricity to customers
  • Improved stability and reliability of transmission and distribution systems
  • Increased use of existing equipment, thereby deferring or eliminating costly upgrades
  • Improved availability and increased market value of distributed generation sources
  • Improved value of renewable energy generation
  • Cost reductions through capacity and transmission payment deferral

The energy storage program also seeks to improve energy storage density by conducting research into advanced electrolytes for flow batteries, development of low temperature Na batteries and nano-structured electrodes with improved electrochemical properties. In power electronics, research into new high-voltage, high-power, high frequency, wide-band-gap materials such as silicon-carbide and gallium-nitride is underway. In addition, advanced power conversion systems using advanced magnetics, high-voltage capacitors, packaging and advanced controls to significantly increase power density and performance is ongoing.

Commercial Battery Energy Storage Applications

Battery Energy Storage System Performance Risk Factors

Many common factors influence how well a BESS will perform, but there are several that are specific to a given project. Things to consider or question when looking at a risk:
The current electric grid is an inefficient system that wastes significant amounts of the electricity it produces, because there is a disconnect between the amount of energy consumers require and the amount of energy produced from generation sources.

Insurance Factors for Battery Energy Storage Systems

Below we’ve highlighted key questions around construction, safety and maintenance of the battery storage systems.

Construction

  • How is the BESS building constructed? 
  • Is it a tin shed or masonry block? 
  • Is the space conditioned to provide cooling in summer? 
  • Is the connected electrical apparatus installed in its own conditioned and protected enclosure, or in close proximity to the batteries?
  • Is the battery area adequately ventilated to remove potentially explosive gases that are generated from charging cycles?

Safety Protection System Design

  • Is the BESS building protected by fire and smoke detection systems? 
  • Do those systems provide remote alert and annunciation to offsite personnel and a fire brigade? 
  • Is the BESS building and/or battery banks protected by a fire suppression system?
  • Does the system design allow for continuing operation of the facility, at full or reduced capacity, if the BESS becomes inoperative?

Maintenance

  • What is the procedure and frequency for battery maintenance and testing? 
  • Are records maintained and available for review?
  • Are spares readily available, if the individual cells fail?

Conclusion

Battery Energy Storage Systems are essential within the commercial power landscape. With the number of energy sources increasing, the use of these systems is key to balancing energy load. Understanding the risks of end-to-end battery energy storage systems is our specialty.