Power
Battery Energy Storage Systems Technology Aims to Clear Hurdles
Despite various challenges, BESS technology seems likely to be more widely used in the future.
Released Wednesday, December 23, 2015
Researched by Industrial Info Resources (Sugar Land, Texas)--Battery energy storage systems (BESS) technology has advanced in the past few years, with more electrical utilities and renewable energy developers using it to augment electrical grid and renewable generation projects.
BESS consists of battery modules, a battery management system and a power conversion system to convert the direct current to alternating current, with the ability to obtain a recharge.
BESS can be used for multiple services, including frequency regulation, voltage support, spinning reserve and black start. In conjunction with renewable solar and windfarms, the technology can be used to offset the load fluctuations of these highly intermittent resources.
On the customer side, BESS can be used to offset peak electrical demand in order to lower utility bills during high price peak times, such as in the mornings and afternoons.
Energy storage continues to lag in development due to factors such as the current low cost of natural gas-fired peaking generation, as well as the high initial capital cost of storage. However, as these energy storage systems gain traction, the technology will continue to compete with existing conventional generation resources.
Utility-scale battery costs and performance parameters, as well as barriers to large-scale implementation, such as a lack of state and federal energy storage incentives and regulatory improvements, continue to pose a challenge to project development. Additionally, financing of these types of projects has been limited due to the high costs of loans. However, these difficulties seem likely to lessen as the technology improves and is implemented around the U.S. and worldwide.
According to the U.S. Energy Storage Monitor report, PJM Interconnection LLC and California were the largest utility scale energy storage markets in 2015. The report also noted the expected growth in the U.S. energy storage market during the next five years, with a projected 1,349 megawatts (MW) added by 2020, seven times the size of the 2015 market. This represents a market growth of $1 billion in 2015 to $20 billion-$25 billion by 2024. For more information, see October 21, 2015, article - New California Renewable Energy Standards Promote Power Projects.
BESS continues to improve, with the goal of having a mid-range of 6-10 hours of backup power among different battery types, such as lithium, sodium and nickel, as well as future battery technologies. With longer battery life, increased energy density, increased cycling capacity and extended temperature ranges, these systems will be able to operate without significant power loss for 20 years.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at https://www.industrialinfo.com/.
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