Outrun energy instability: The role of battery energy storage systems in global electrification

According to the International Energy Agency’s World Energy Outlook 2024 report, global demand for electricity is set to double by 2050. That surge in demand has to be met with two global efforts: a ramping up of renewable energy generation and the continued adoption of battery solutions by businesses of all sizes, says Andressa Ferraz, Global Product Line Manager, As-a-Service (Energy & Carbon).

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How can you keep your business running amid a surge in global energy demand?

 

An enormous change in the way energy is generated and consumed is underway, driven by a wide range of factors, from evolving regulatory and governmental oversight to a shift in the ways we all use power – particularly electricity.

 

The acceleration of EV adoption, for example, has meant that the demand for fast-charging capabilities puts new pressures on our electrical grids, and the proliferation of data centers – particularly those supporting the planet’s recent demand for generative AI – means that electrical power has never been more important. At the same time, the world has never paid more attention to how that electrical power is generated. With all eyes on business’s net zero credentials, and with many parts of the world mandating that progress toward decarbonization is tracked and improved each year, it’s never been more important to invest in clean energy.

 

The effects of the climate crisis, alongside regional instability and conflict, mean that we are all more concerned with the security and reliability of our electricity supply than ever before. Businesses that require a predictable, stable supply of power need to take steps to ensure their supply is not compromised.

 

Batteries – a critical component in modern energy infrastructure

 

One answer to the twin questions of decarbonized power and energy security might be to generate your own. Many commercial buildings, be they shopping malls or hospitals, data centres or glass factories, have plenty of space on their roofs for solar panels.

 

Coupled with a battery energy storage system – or BESS – this clean source of energy can help power your facility even when the sun isn’t shining. And if you find that your solar panels are producing more energy than you need, you can even take advantage of AI-powered software to trade your energy back into your deregulated energy markets.

Industry-wide applications: powering modern business

 

While ABB’s BESS-as-a-Service is a highly adaptable solution that is useful to many industries and by no means limited to those listed below, it offers powerful, targeted advantages across several critical sectors:

  • Oil and gas: Implementing a BESS minimizes operational costs and manages utility demand charges by storing energy during off-peak periods to use during peak times. It also enhances energy independence and operational security for remote locations by reducing reliance on unstable local grids and replacing inefficient diesel generators.
  • Manufacturing: A BESS allows manufacturers to unlock new revenue streams through energy arbitrage, feeding power back to the grid when prices are high. It also improves power quality by smoothing out voltage fluctuations that can damage sensitive manufacturing equipment.
  • Transport and logistics: BESS solutions stabilize weak grid connections, providing immediate power support that allows logistics hubs to install EV fast-charging capabilities without expensive grid upgrades. By storing renewable energy, distribution centers can also lower greenhouse gas emissions and avoid peak demand charges.
  • Data centers: BESS acts alongside uninterruptible power supply (UPS) systems to manage downtime without relying on fossil-fuel generators. Furthermore, it provides vital frequency regulation and mitigates voltage fluctuations, ensuring the near-constant uptime data centers pledge to their customers.
  • Commercial buildings: Commercial building operators can store energy during off-peak hours to reduce power bills, leading to budget predictability and minimizing the impact of sudden surges in demand during peak pricing. Installing a BESS can also help properties achieve certifications like LEED, attracting eco-conscious tenants.
  • eMobility: By supplying stored energy during peak charging times, a BESS alleviates stress on power grids in both urban centers and remote areas. It also facilitates the development of off-grid or microgrid charging solutions, further reducing dependence on centralized power.
  • Food and beverages: A BESS safeguards critical production processes against power outages and costly downtime. It also effectively shields producers from market price spikes – which can rocket by tens of thousands of percent during high demand – by deploying stored energy. 

How can you leverage a BESS with no up-front costs?

 

A common concern regarding the installation of a BESS is that it requires heavy investment upfront, has a long tail when it comes to returning on your investment, and, for businesses whose expertise does not lie in electrical infrastructure, requires too much specialist knowledge to maintain.

 

But with ABB’s unique BESS-as-a-Service model, all of those concerns can be put aside. With this model, implementing a BESS on your site is possible with no up-front capital expenditure.

 

In addition, the planning, installation and ongoing maintenance of the equipment is handled by ABB – your single point of contact for all aspects of the implementation. You’ll also get access to management software that allows you to monitor the system from a single screen. Thanks to the savings possible with energy management, many of our customers see a positive financial return from day one.

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<p>Want to understand more about how you can take control of energy with BESS-as-a-Service?<br> <br> Thanks to ABB's unique as-a-service model, your business can get all the benefits of a BESS without any of the upfront capital expenditure. To find out more, request an obligation-free feasibility assessment.</p>

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