What Is Energy Storage?

Rapidly expanding data centers and a growing number of electric vehicles are just a few factors accounting for a 4.7% projected electricity demand increase over the next five years. With more pressure on an already strained system, utility-scale energy storage is critical to strengthening the electric grid.

What Is Utility-Scale Energy Storage?

Utility-scale energy storage systems are large rechargeable batteries that store energy and discharge it into the grid when needed — including during extreme weather events or periods of high grid strain. This reduces reliance on immediate power generation and consumption, enabling faster response times and around-the-clock delivery of electricity during the most critical and strategic timeframes. Batteries can store energy from all sources of electricity, including renewables.

Energy storage is measured in megawatts (MW) of overall capacity and duration in megawatt hours (MWh). For example, an 800 MWh battery energy system with a maximum capacity of 200 MW can deliver 200 MW for four hours, which typically can power up to 200,000 homes during peak electricity demand.

How Does Energy Storage Work?

There are six key components of battery energy storage systems (BESS) that help to store and release energy back to the grid. Here’s how each part contributes to overall system functionality:

• Battery modules: Modules consist of interconnected Lithium Iron Phosphate battery cells that store and release energy. Modules can be stacked together to create a battery rack.
• Battery management system (BMS): The BMS monitors and manages battery health and safety.
• Battery enclosure: The enclosure, where battery racks are installed, is noncombustible, weatherproof, and UL-rated. The enclosure is equipped with a thermal management system to maintain battery temperature ranges. The system automatically shuts down if an elevated temperature is reached.
• Power conversion system (PCS): A PCS, also referred to as a bi-directional inverter, facilitates the process of converting direct current (DC) electricity to alternating current (AC) electricity to discharge it to the grid. The inverter also converts AC to DC energy to charge the batteries.
• Energy management system (EMS): The EMS optimizes performance and communicates with the PCS to direct the flow of energy in and out of the system.
• Supervisory control and data acquisition (SCADA) system: SCADA works with the EMS 24/7 to enable real-time monitoring, control, and data acquisition of the battery system for reliable and safe energy management.

Benefits of Utility-Scale Energy Storage Systems

Utility-scale energy storage systems provide a range of benefits to customers, communities, and the grid including:

• Power stability: Energy storage helps ensure uninterrupted power for consumers. Whether during times of peak demand or extreme weather events, having excess energy readily available can reduce or eliminate brownouts and blackouts.
• Cost reductions: Energy storage protects against rising electricity prices by storing energy when prices are low and discharging it when demand and costs are high. Storage also prevents or reduces the risk of costly blackouts and brownouts.
• Enhanced viability of renewable energy: Combining energy storage with renewables like solar allows the grid to benefit from these low-cost sources of energy even when the sun isn’t shining.
• Economic support: According to the American Clean Power Association, energy storage provides more than $580 million per year in tax revenue and land lease payments to local communities. Additionally, storage projects currently provide more than 75,000 jobs in development, construction, and maintenance.

Energy Storage Design and Construction

Planning and design for energy storage projects needs to start well in advance of construction.  Often, the best locations for these projects are congested with existing infrastructure and facilities. Careful orchestration of site selection, stakeholder engagement, permitting, financing, commercial agreements, design, and other activities can take up to several years. Battery technology selection is the first step in designing a safe, reliable, and efficient utility-scale energy storage system. Arevon utilizes advanced Lithium Iron Phosphate battery technology, which offers significantly enhanced safety compared to the Lithium-Ion technologies.

Once planning is complete, the project moves into construction that takes three to 12 months depending on project complexity. Energy storage projects are constructed in urban or rural areas with connection to transmission where additional power supply is needed. Storage systems are typically housed in engineered shipping containers, outdoor-rated cabinets, or purpose-built buildings placed on top of ground mounting structures using large cranes. From here, construction crews run safety tests and connect the batteries to the grid to start providing backup energy to the community.

Arevon designs, constructs, and operates energy storage projects with safety as a top priority, adhering to all relevant national and international standards and procedures including the International Fire Code (IFC), International Building Code (IBC), International Electrotechnical Commission (IEC), and National Fire Protection Association (NFPA).

How Energy Storage and Solar Work Together

Battery energy storage systems, whether standalone or co-located with renewable energy, play a crucial role in creating a more resilient, nimble grid. However, their benefits are even greater when paired with renewable sources like solar. In solar-plus-storage projects, batteries store and discharge energy produced by the solar panels, optimizing efficiency.

Solar-plus-storage projects are highly cost effective, allowing for cost-sharing between both systems to reduce total project expenses. Pairing solar production with a battery energy storage system allows the system to optimize use of one of the cheapest and cleanest forms of energy.

Bolstering the Grid for a Brighter Future

Energy storage provides much more than backup power for emergencies. Adding battery storage systems can transform the grid into a more dynamic, secure source of affordable energy. Pairing batteries with solar production can take these benefits even further.

As a leading renewable energy company, Arevon develops, builds, finances, owns, and operates utility-scale solar, energy storage, and solar-plus-storage projects in communities across the country to strengthen the U.S. electric grid. Contact us today to learn more about our industry-leading energy storage projects.

Explore Utility-Scale Energy Storage Frequently Asked Questions