The Many Benefits of Battery Energy Storage
Commercial building owners and facility managers constantly look for ways to improve their bottom line and one strategy is to install battery energy storage systems (BESS). Demand is growing for these systems as more organizations adopt renewable energy and electric vehicles.
How BESS works
Most BESS rely on rechargeable lithium-ion batteries, which store electricity as chemical energy that is converted to electrical energy when needed. Advantages include high energy density (more power storage in a smaller space), longer lifespan than other technologies and faster charging capabilities.
Other battery energy storage technology options include:
- Sodium-ion batteries. Move sodium ions between the anode and cathode. Advantages include cheaper raw material costs and greater availability, much safer than lithium, temperature stability, fast charging, fast response times and no hazardous chemicals or emissions, but at a slightly lower energy density.
- Lead acid. Much lower energy density than sodium and lithium. Mainly used for smaller backup needs. Short cycle life.
- Nickel cadmium (Ni-Cd). Lower energy density than sodium and lithium but better than lead acid. Higher than normal self discharge levels (10% per month).
- Nickel metal halide (NiMH). Lower energy density than sodium and lithium but better than lead acid or Ni-Cd. Memory effect and self-discharge can be issues.
- Flow batteries. Consist of two tanks of liquids that are pumped past a membrane held between two electrodes. Energy is stored in the electrolyte. Advantages include flexibility, scalability (easy to upgrade without replacing the entire system), long lifespan and a wide operating temperature range. This technology is available but has not yet reached mass market penetration.
Benefits of BESS
Battery energy storage installations can range widely in size from 30 kilowatt-hours to 10 megawatt-hours or more. Other benefits of BESS systems include:
- Lower energy costs by reducing peak demand charges and avoiding costly penalties associated with exceeding predefined energy limits, leading to substantial savings.
- Reliable backup power during grid outages or emergencies, ensuring uninterrupted operations, preventing costly downtime and improving resiliency.
- Optimizing renewable energy by effectively harnessing and utilizing the generated energy, thereby reducing dependence and stress on the grid.
- Decreased carbon footprint by minimizing reliance on fossil fuels and promoting clean energy usage, meeting sustainability goals. Enables more solar to be installed.
To realize these benefits, BESS should be scalable and flexible to accommodate varying energy demands. Factors to consider include initial investment, energy usage patterns (by conducting an audit), electricity rates, maintenance costs and expected lifespan. An ideal site has a minimum load of 750 kW, uses a single meter and has enough space for the battery.
Financing options
BESS installations can be expensive, but financing options are available. Energy storage projects may be eligible for a federal investment tax credit that covers up to 30% of the project costs.
With increasing concerns about our environment impact and the growing movement toward building decarbonization and electrification, battery energy storage is the future. Why not start investing in your future today?
Before you install and before you connect to our grid, you'll need to submit a New Interconnection Service Request. Visit IndianaMichiganPower.com/CreateGreen for more info.
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