Battery Energy Storage Systems and Their Role in Grid Integration

The question of what role grid-scale battery storage plays in a power system has gained prominence because of the increasing need for power system flexibility coupled with the rapid decline in the cost of storage technologies, particularly lithium-ion batteries. More utilities and governments seek to determine whether battery storage is a cost-effective option for integrating large shares of variable renewable energy, such as wind and solar, into their power systems.

While energy storage presents an enormous opportunity to improve power system operations, many power systems can support variable renewable energy integration using other methods such as system operation improvements or conventional generation flexibility. The appropriate amount of grid-scale battery storage depends on system-specific characteristics. A careful analysis is always required to understand whether investing in energy storage is the best option.




Battery energy storage systems (OSM BESS) are best suited for applications that require a fast response time and a high power demand over the short or medium term. They improve the reliability, availability and efficiency of the power supply. OSM BESS are ideal for applications like peak shaving, frequency control and load balancing, as well as renewable integration through ramp rate control and energy time shift. Energy storage systems generate much higher value when multiple, stacked services are provided in the same system.