What are Battery Energy Storage Systems (BESS)?

Batteries are the fastest growing category of energy storage technologies in the United States today. In most cases, these batteries are larger, more advanced and rigorously tested versions of the same technologies used in everyday household items, including laptops and cell phones. In recent years, a wave of safety improvements have been adopted as battery manufacturers, power companies, regulators and public safety officials have gained more experience with large-scale battery technologies.

Those safety improvements include fire retardant materials, enhanced cooling systems, thermal barriers, better storage container design, improved sensors and early detection systems that can respond more quickly if an abnormality is observed, and updated fire protection systems.

Taken together, these improvements successfully cut the failure rate (per installed MWh) of large-scale batteries by 97% between 2018 and 2023, according to the Electric Power Research Institute (EPRI).

How do Battery Energy Storage Systems Save Ratepayers Money?

The cost of generating electricity is highest during peak demand, such as on hot summer afternoons when air conditioners run at full blast. Utilities typically meet this demand by activating expensive, inefficient "peaker" power plants that run on natural gas or diesel.

With BESS, utilities can store cheaper energy during off-peak hours and discharge it during peak times. This "peak shaving" reduces the need for costly peaker plants, which helps to lower overall energy costs for ratepayers.

How do Battery Energy Storage Systems Secure the Grid?

BESS systems increase grid resilience and stabilization becuase they can provide instant power adjustments, known as frequency regulation, to stabilize the grid and prevent outages.

A more stable grid requires fewer expensive infrastructure upgrades, and fewer power outages mean less financial loss for consumers and businesses.

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