Why battery energy storage is key to a clean energy future
At COP29, the move to renewable energy was described as “unstoppable”. Over the last few years, this view has become more widely accepted in many developed and developing nations. Rightly so: renewable energy has proved itself to be a cost-effective, practical alternative to fossil fuels, innovation is rapidly improving, and investment is surging.
So, the transition to renewables is certain, but what’s the next step to further accelerate this process? Now, renewables account for 30% of the global power mix as of 2023, and the industry is ready to get even more out of green energy and find suitable technologies to cope with a number of challenges, such as reliability, grid stability, safety and economic feasibility. It is within this environment that the technology underlying renewable energy infrastructure must prove its potential.
Enter battery energy storage systems, known as BESS. This transformative technology – the fastest growing energy technology on the market – stores electricity in batteries for later use, and can address all these challenges – and that’s without mentioning its compound effect on renewable integration more broadly (more on that later).
So, what’s the current state of the BESS market? In short, it’s booming. The global energy storage market almost tripled in 2023, and by 2034, the global BESS market is expected to grow at a compound annual growth rate (CAGR) of 26.92%. The market is also opening its doors. For example, delegates at COP29 agreed to a milestone pledge to raise global energy storage capacity to 1.5TW by 2030 and to scale up investments in the electricity grid away from fossil fuel reliance.
This is clearly a step in the right direction, but if we are to achieve domestic and global net-zero ambitions, improving the efficiency of renewables by fostering reliability, grid stability, safety and economic feasibility is paramount. BESS technology offers compelling solutions to these challenges and in doing so, will pave the way for a more sustainable energy future.
BESS as a solution for grid reliability and stability
BESS has emerged as a critical infrastructure for sustainable energy transition, directly addressing concerns about the stability of renewable energy sources. By providing on-demand energy supply, BESS effectively smooths out the intermittency issues associated with solar and wind power. This capability ensures a consistent power supply, even when renewable sources are not actively generating electricity.
Moreover, BESS plays a crucial role in mitigating price volatility caused by the variable nature of renewable energy production. By storing excess energy during peak production times and releasing it during periods of high demand or low production, BESS helps stabilise energy prices and supply. This function is particularly valuable in integrating multiple renewable energy technologies into the grid, creating a more resilient and diversified energy ecosystem.
The reliability of BESS extends beyond its operational capabilities. Advanced technological safeguards and risk mitigation strategies have been implemented to maximize safety and dependability of these systems. Features such as advanced battery management systems, thermal regulation, and robust containment measures address potential concerns about battery safety. What’s more, with large-scale burn tests now being conducted, there is an increasing understanding of how to mitigate ‘worst-case’ scenarios. By transparently communicating these safety measures, we can build consumer confidence in BESS technology and, by extension, in the broader renewable energy sector.
BESS as a solution to economic feasibility
When discussing the economic feasibility of BESS and renewable energy, it’s crucial to consider the long-term costs of environmental inaction and continued reliance on fossil fuels. While the initial investment in BESS infrastructure may seem substantial, it pales in comparison to the potential economic impacts of climate change, which could cost the global economy trillions of dollars in the coming decades.
BESS demonstrates environmental benefits that extend far beyond carbon reduction. By enabling greater integration of renewable energy sources, BESS contributes significantly to reducing greenhouse gas emissions. In addition, BESS can prevent the issue of wasted renewable energy during times of excess production, such as the £1.5 billion spent to curtail over 6.5 TWh of wind power in the UK between January 2021 and April 2023 – costs which end up impacting households. It not only represents a significant economic saving but also maximises the utilisation of clean energy resources.
The economic viability of BESS is further enhanced by ongoing technological innovations. Advancements in battery chemistry, manufacturing processes, and system integration are continuously driving down costs while improving performance. For instance, it is predicted that total upfront costs of utility-scale battery storage projects will decline by 40% by 2030. Projects scaled up will create economies of scale and as a result, make BESS increasingly cost-effective and appealing to deploy.
BESS will become a key player in the clean energy story
BESS technology is not just addressing concerns about renewable energy; it can revolutionise our approach to a clean energy future. By tackling reliability, grid stability, and economic feasibility head-on, BESS can be the linchpin in the world’s renewable energy transition.
More than that, it can be a catalyst for change on a bigger scale. It’s already enabling the integration of more renewable sources, and so will create jobs, drive economic growth, and bolster energy independence amid market uncertainty. As we scale up BESS deployment, we find ourselves on a promising route to a clean-energy transition, sooner than we think.
