Energy storage provides the means for increasing grid reliability by matching supply with demand moment by moment, improving grid reliability. Furthermore, storage can enable renewable sources like wind and solar to become part of the electricity system by helping smooth out their output fluctuations.
Battery ESSs range in size from residential units to large utility-scale installations, but all have similar designs: each contains a battery cell, module and other components assembled in an enclosure or building that connects directly with the grid to either discharge or charge from.
Cost
Energy storage systems allow electricity to be stored and released at just the right moment, aiding grid stability and resilience. Lithium batteries – similar to those found in cell phones and electric vehicles – are currently the most widely-used energy storage solution, usually coupled AC or DC with solar generation for maximum effectiveness.
Electricity prices vary with time of use, with peak demand occurring during summer afternoons and evenings being the most costly times to use it. Energy storage systems can help keep electricity prices lower by charging when it is cheaper, discharging during peak times and “firming up” renewables by smoothing their intermittent nature such as solar or wind generation.
Energy storage solutions like PEAK IQ provide additional capacity and resilience to the grid without adding new wires, saving both money and effort in building them out.
Reliability
Energy storage provides reliable backup power to communities, helping reduce electricity cost spikes during periods of peak demand. Individual homes, businesses and community solar projects can use it to store electricity for use at optimal times – using lithium-ion technology similar to what can be found in cell phones or electric cars, large-scale battery storage can be charged during periods of excess renewable generation and discharged when demand peaks.
Utility-scale energy storage systems combine containerized battery modules with essential site infrastructure such as thermal controls, safety systems and inverters for grid use. Batteries gradually degrade over time due to chemical composition changes and multiple charging/discharging cycles; however, their design allows for up to 20 years of service. Battery storage is an integral component of America’s clean energy future, helping ensure our current grid can seamlessly incorporate higher levels of wind and solar energy. Battery storage also offers front-of-the-meter services like frequency regulation, voltage support and renewable integration as well as black start capabilities and essential backup power during outages.
Efficiency
Energy storage is an innovative flexible power technology that improves grid efficiency and alleviates transmission congestion, while simultaneously reducing end-user demand charges and making participation in utility demand-side management programs possible.
Renewable energy sources increase their value by providing electricity at times when they’re not producing any power, such as during cloudy or calm windy nights when their generators don’t generate. This can help customers avoid price surges during peak demand periods and minimize transmission line construction costs.
There are various forms of energy storage, including rechargeable batteries, pumped hydro (lifting water), thermal energy storage systems and flywheels. Of these technologies, rechargeable batteries, pumped hydro (lifting water), thermal energy storage and flywheels are the most popular in terms of usage; today pumped hydro and battery storage technologies are particularly efficient at storing large amounts of energy, and combined with solar or wind can provide community resiliency while simultaneously decreasing fossil fuel demand during extreme heat or cold.
Safety
Energy storage is an efficient form of energy production; however, it should not be seen as without risk. All forms of energy storage pose the potential threat of uncontrolled release that could threaten equipment or people; in most instances these risks pertain to fire and chemical safety issues.
Energy storage facilities differ from traditional fossil fuel power plants in that their design and construction prioritize safety by design. This commitment can be seen through stringent safety standards and strong partnerships with local first responders that guide planning, development and operation of each project.
Energy storage projects must comply with and surpass national fire protection standards such as NFPA 855. Each battery system undergoes stringent testing before being certified as safe to perform on the grid. Furthermore, all energy storage sites must submit documentation to their local Authority Having Jurisdiction (AHJ) regarding fire safety tests performed and mitigation strategies developed specifically for their site – in addition to publicly available energy storage safety resources – so as to ensure each project remains safe for communities.