Battery Storage For Renewable Energy

Battery energy storage systems allow businesses to store electricity they generate as well as electricity from the Grid. They can then use this to reduce energy bills at peak times. The technology also helps businesses stay operational during power outages.

For companies wanting to deploy battery energy systems, there is a wide range of hardware and software options available. The best solution for businesses is one that matches their energy profile, site setup, and future commercial needs.

In this article, discover the benefits battery energy storage systems deliver. You'll also find out how to choose and implement the right solution for your business. Professor Jacopo Torriti, a Professor of Energy Economics and Policy at the University of Reading, also provides insights into battery use with renewable energy.

A battery energy storage system is a type of technology that stores electricity for later use. This can be energy from the National Grid or renewable energy you generate yourself.

Key benefits of battery energy storage technology include:

Battery storage systems can significantly reduce the cost of energy for businesses. For example, a factory could fully charge its batteries with off-peak electricity or from solar and wind power it generates. It can then use that electricity instead of expensive peak power from the Grid.

The potential cost savings are significant. Utility companies charge peak rates when many businesses are using the most electricity, typically from 7 am to 7 pm. A report by energy service provider Joulen found that firms with solar and battery storage could achieve a 60% saving by avoiding reliance on peak-rate electricity.

Solar power became increasingly popular with businesses in the 2010s. Adoption surged with the availability of more affordable equipment and installation, as well as government incentives.

Today, battery costs are falling quickly. This makes investing in the technology more affordable, reducing payback periods to between four and eight years. Businesses can shorten that time further by selling excess capacity back to the Grid, creating an additional revenue stream.

A handful of vendors are seeking to remove upfront costs for businesses. Some suppliers will now provide storage systems at no cost with a power purchase agreement (PPA). Firms can expect to reduce energy bills by 50% although they will need to sign a 20-to-30-year agreement with the supplier in order to lease the technology.

Although power outages in the UK are relatively rare, they do happen. Many companies already have diesel power generators in place for such incidents. The problem is that, when companies need them, issues such as pre-start preheating and fuel filter clogging can delay startup.

Manufacturers, cold storage warehouses, and data centres need a more reliable fallback. This is where battery storage offers a solution. They can respond to fluctuations in the power supply almost instantly.

They offer other benefits, too. Senior engineering managers benefit from fewer halts in production and greater operational certainty. Maintenance leads find they need less servicing and eliminate fuel storage and handling issues. 

The use of battery power also reduces demand on the Grid, enhancing its stability. In fact, the Grid works with battery storage companies to provide backup in case of failure.

The system works as evidenced in 2019 when two power plants went offline, but in seconds, firms including Upside Energy and Limejump plugged the gap.

By generating and storing their own electricity, firms cut their reliance on fossil fuel power. 

Battery storage systems appeal to companies under pressure to cut carbon dioxide emissions. Many procurement leads see this form of sustainable technology as a way to meet Scope 2 emissions targets.

In the UK, batteries contributed to a 4% drop in power sector emissions between January and August 2024. Modo Energy reported that this prevented 950,000 tonnes of carbon emissions during this period.

Battery storage is expected to become the norm for managing renewable energy and Grid energy in the coming years. Technological advances such as increased power storage capacity and falling prices will accelerate this adoption. 

Perhaps the most important benefit battery storage offers is its potential impact on industry attitudes towards renewable power, transforming what is currently an intermittent source of power into a source of on-demand electricity.

Most systems today are lithium-ion, of which there are two variants:

• NMC (Nickel Manganese Cobalt): NMC batteries charge and discharge quickly, so they're better if you need high power over a short period
• LFP (Lithium Iron Phosphate): LFP batteries have a higher cycle life and are safer. They constitute around 60% of UK systems

If you need power for more than six hours, flow batteries are a suitable solution. Unlike lithium-ion batteries, flow batteries discharge over longer periods, meaning they can maintain a steady output over an extended use period.

Manufacturers are currently developing alternatives like solid-state storage and sodium-ion batteries. They promise higher energy density, longer operating lifespans, and faster charging.

Companies need a system that will cover Grid outages at peak production time. This provides assurance that production won’t grind to a halt. There are other benefits too, like peak shaving.

Peak shaving is switching to the power in your batteries to replace some or all electricity usage from the Grid. This can result in significant savings during peak hours by reducing your outside energy consumption.

System integration is important because battery storage systems need to work with existing equipment. 

For companies with their own solar PV and/or wind power generators, compatibility is particularly important to make sure that surplus energy can be captured and deployed.

Software also plays a major role. The right energy management system can do a lot more than just balance charging and discharging. For example, it can connect to a building management system to reduce Grid electricity used for heating and cooling. 

For companies with EV chargers on site, the software can smooth out charging demand and save money on peak tariffs.

Upfront cost is an important consideration, but companies need to factor in costs relating to performance and lifespan, as well.

Some batteries deliver more usable energy for every unit you put in. This would be handy for cold store warehouses, for example, which could store electricity to power chillers at peak times. 

Others hold their capacity for longer before they need replacing. This would be useful for businesses such as hotels with spas, laundries, and other facilities because of their daily use and long cycle runs.

Other factors to think about are the warranty and disposal. Companies should consider how many years of reliable use a system will provide them with, as well as how suppliers handle equipment and the end of life, since the UK and EU now require a recycling plan.

Software support is important, too. This is essential to confirming how long a vendor will support a company’s energy management software, as there is a risk that the batteries may outlast the system that controls them. 

Before implementing a battery storage system, it’s important to get a clear picture of energy use levels and energy peaks. Involving suppliers as early as possible provides useful guidance on hardware, software, sizing, safety, and connection to the Grid.

Once a system is installed and operational, staff need training on how to use and maintain it. Regular checking will confirm that it’s working as expected. Suppliers can provide additional support if there are performance issues.

Financing a battery storage system also requires careful consideration. Comparing the cost of different systems over their lifetime will give companies a clear picture of the true cost of ownership and likely return on investment.

Sustainability is the future of business. Learn more about sustainability, whether it’s working with sustainable manufacturing or applying sustainable design principles effectively.