Battery energy storage systems (BESS) are technologies that store energy for later use. They charge when electricity is abundant or inexpensive, frequently from renewable sources like solar and wind. The stored energy is then used during periods of high demand or when renewables cannot produce enough electricity. It is similar to charging a phone battery overnight when electricity is cheaper and using it during the day when it is needed.
BESS are important because they help balance energy supply and demand. They enable better use of renewable resources, reduce dependence on fossil fuels and help stabilize the grid. These systems are also useful in situations where the power supply is unreliable or in emergency situations. Therefore, battery energy storage systems represent a basic solution to growing concerns about climate change and increased energy prices, guaranteeing efficient and sustainable use of energy resources.
According to a new report published by Allied Market Research, the global battery energy storage systems market is anticipated to showcase a remarkable CAGR of 20.1% during the forecast period.
The role of battery energy storage in green energy
Over the past few years, there has been a global shift toward adopting green energy solutions. Large energy storage systems have become essential to balance energy demand and supply. Lithium-ion batteries are proving invaluable for handling peak power loads, frequently replacing traditional gas-fired power plants. With the growing use of solar and wind power, it has become necessary to manage their intermittent nature, which depends on weather conditions for energy production.
Battery energy storage systems offer a reliable solution. They store surplus energy produced during periods of high output from renewable sources and release it when energy use increases or production decreases. This capability ensures grid reliability and improves the integration of renewable energy in existing power systems, enabling the effective use of more clean energy.
The demand for BESS is anticipated to increase as it helps optimize the use of renewable energy, increases grid flexibility and accelerates the global transition to sustainable energy. With continuous improvements in battery technology, including higher energy density, lower costs and better safety, its adoption is expected to grow considerably, particularly in developing countries such as India, Brazil and Mexico.
For example, India has recently launched its largest Battery Energy Storage System project in Karnataka. This project involves a 1 GWh system aimed at supporting the integration of solar and wind energy into the grid. This shows that battery storage is an essential part of future green energy infrastructure, enabling a more sustainable energy future.
LG Energy Solution acquires NEC Energy Solutions for ESS expansion
In February 2022, LG Energy Solution Ltd. secured NEC Energy Solutions, a U.S.-based grid battery integrator, from its parent company in Japan NEC Corporation. This acquisition was expected to improve LGES’s Energy Storage System services, resulting in the establishment of LG Energy Solution Vertech Inc.
The global demand for integrated storage systems, which lower capital and installation costs, has surged, compelling leading battery suppliers to deliver advanced equipment and services. By incorporating NEC Energy Solutions’ expertise and proprietary technologies such as the AEROS control system, LGES can now provide fully integrated AC and DC storage systems, improved with operational services including installation, remote monitoring, and maintenance.
NEC Energy Solutions reported rapid growth, with its revenue hitting $207 million in 2020. The company’s annual growth rate has averaged 60% since 2018. LGES intends to take advantage of this by enhancing system-level performance and reliability using advanced monitoring and data acquisition technologies.
With the energy storage system market expected to grow at an annual rate of 35%, reaching 302 GWh by 2030, LGES intends to strengthen its position as a global leader. CEO Youngsoo Kwon emphasized the importance of the acquisition in meeting the growing demands for ESS with thorough, high-quality solutions.
To sum up, battery energy storage systems play an essential role in balancing the supply and demand of energy, helping to integrate renewable energy sources and stabilize power grids. With advancements in battery technology, reduced costs, and growing renewable adoption, the BESS sector offers notable growth potential, especially in developing markets.
𝑨𝒓𝒕𝒊𝒄𝒍𝒆 𝒘𝒓𝒊𝒕𝒆𝒓: Harshada Dive
Author’s Bio: – Harshada Dive is a computer engineer who loves experimenting with trending topics and is passionate about presenting contemporary trends creatively to her audience. Her writing skillfully integrates knowledge and creativity, reflecting her dedication to creating engaging and thoughtful content. Outside of her professional pursuits, Harshada enjoys gardening and listening to inspirational podcasts.
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