November 13, 2023 •Richard Rayborn
Imagine a world where renewable energy is reliable, available 24/7, and seamlessly integrated into our lives. That’s the future Battery Energy Storage Systems (BESS) are creating. These cutting-edge systems are transforming the renewable energy landscape, solving the age-old challenge of intermittent power supply from solar and wind sources.
Picture this: on a sunny or windy day, BESS quietly stores surplus energy generated by solar panels or wind turbines. Then, when the sun sets or the wind dies down, it springs into action, releasing that stored energy to power homes and businesses. But that’s just the beginning. BESS is a game-changer, offering flexibility that goes far beyond backup power.
Think about peak shaving, where BESS optimizes energy consumption, saving your utility energy and saving your customers money. Consider self-consumption optimization, seamlessly aligning your energy production goals with the ebb and flow of renewable energy. And in the event of a blackout, BESS stands ready to keep the lights on. And guess what? These applications are becoming more lucrative as battery prices drop.
The secret sauce is simple: a surplus of stored energy makes balancing energy supply and demand a breeze, resolving the intermittent challenges of renewables. But what’s even more exciting are the market segments for BESS:
Behind the Meter (BTM) Residential (<30 kWh). McKinsey & Company predicts that by 2030, residential battery storage will reach a staggering 20 GWh nationwide. These systems can be a perfect match for residential customers, blending seamlessly with solar setups, turning homes into a smart and efficient energy oasis. Plus, they’ll play nice with electric vehicle charging stations, reducing those peak power spikes.
Behind the Meter (BTM) Commercial & Industrial Power Moves (30 kWh to 10 MWh). This segment is where the magic happens. Four subsegments await, including the booming electric vehicle charging infrastructure (EVCI) sector. The explosive growth here is driving grid upgrades, but onsite BESS applications could be the cost-effective and speedy solution. Partnerships between BESS players and EV producers are already sparking innovation.
Data Centers & Hospitals. When it comes to backup power, BESS is the superhero, outshining less eco-friendly generators and batteries. Data centers, hungry power consumers in their own right, are embracing BESS to fuel expansions and keep their operations humming. They’re even collaborating with utilities to snag the best energy deals.
Learn more about how we support data centers in this case study!
Public Infrastructure & Manufacturing. Peak shaving, renewable integration, and backup are the name of the game in this subsegment. BESS is becoming the go-to choice for efficient energy management.
Mining, Construction, and Energy Exploration. Here, BESS is a cost-saving dynamo, optimizing energy use and providing grid services. In places like North America, Germany, and the UK, where demand charges are more common, BESS is a no-brainer.
With BESS, solar, and wind energy on the rise, the United States is on the cusp of an energy revolution. Technological advancements, falling costs, supportive policies, rebates, incentives, and changing consumer preferences are propelling us toward cleaner, more sustainable energy sources. As we embrace electrification and decarbonization, these industries will be at the forefront of our energy transition.
Want to dive deeper into our electrification solutions and discover how Franklin Energy is leading the way to a decarbonized future? Schedule a meeting with one of our energy experts today, and let’s power up the future together.
