How it works
In simple terms, a Battery Energy Storage System facilitates the storage and release of energy. It serves as a buffer, storing energy either from renewable sources like solar and wind, or directly from the main grid. The stored energy can later be discharged back into the grid during periods when demand is high or when there's limited energy generation (e.g. when it’s dark or there’s no wind).
Visually, the core components of energy storage often resemble shipping containers. Inside these modules, you'll find batteries, air conditioning units to keep the system cool and inverter units that convert the stored energy for use on the grid. It also involves infrastructure components like access tracks, cabling, fencing, and CCTV cameras.
The integration of energy storage helps to smooth out fluctuations in the grid and increases the overall stability and efficiency of renewable energy.
Facts on Storage
Desire for Self-Sufficiency
In the UK, there is a strong drive towards achieving energy self-sufficiency through the adoption of storage systems. This is fuelled by the desire for greater independence from utility companies, an increasing environmental awareness, and a need for greater resiliency in the event of energy supply disruptions.
Grid Modernisation
The growth of the battery storage market goes hand-in-hand with grid modernisation efforts, including the transition to smart grids. Batteries help to unlock the full potential of smart technologies, and vice versa.
Cost and Performance Improvements
Driven by expanding electric vehicle markets and related manufacturing economies of scale, the cost of batteries (particularly lithium-ion) is dropping while performance is improving.
Employment and Growth
The battery industry could deliver 100,000 jobs by 2040 and is central to growth of key industries, such as electric vehicles and renewables, as well as the sustainable growth of the economy. (Source: Gov.UK).
Participation in Wholesale Electricity Markets
Battery storage will help balance the grid and improve power quality regardless of the generation source. Nearly every nation we examined is revamping its wholesale energy storage market structure to allow batteries to provide capacity and ancillary services.