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BESS (battery energy storage systems) can be deployed in the grid in its transmission network, its distribution network, co-located with renewable energy generating assets, and BTM (behind-the-meter) servicing the end customer or the grid.

The location of a BESS varies by use case. It could protect the grid from voltage and frequency fluctuations, promote cost effective capacity expansions, peak support (relieve peak time stress), enhance grid uptime, or increase revenues through price arbitrage and optimize renewable energy outputs.

Very fast response to grid failures until backup reserves kick in.

BESS can be utilized as reserve capacity to compensate for generation or transmission outages. Its capability to stay idle at high state of charge and instantaneously respond to grid events, enables network operators to utilize conventional generating assets more efficiently, as these assets will no longer need to stay on constant standby. This brings multiple benefits to asset owners including lower operating costs, reduction of carbon emission, and longer lifespan of conventional generators. BESS featuring high c-rate capabilities and long service life are best suited for handling spinning reserve services.

Very fast response to unpredictable variations in grid frequency mainly due to imbalanced demand / supply.

Despite the many advantages of renewables, their intermittent nature increases the volatility of frequency in the power grid.

BESS can effectively manage and control such fluctuations, ultimately allowing more renewables to be added on to the grid. BESS supporting high power have a comparative advantage over storage systems that operate at long durations as energy can be utilized more efficiently and dynamically to stabilize the grid.

Store energy when grid prices are low, sell when grid prices are high-BESS combined with renewables such as solar PV provide a viable business case for arbitrage, especially in regions that have time-of-use(TOU) tariffs with variable electricity prices during the day. As arbitrage involves storing low-cost electricity, which can either be sold when the prices are high or used to avoid the consumption of expensive electricity during peak hours, BESS having high round-trip efficiency and energy density is considered to be the best performing solution for arbitrage. Home and business owners can maximize their profits by participating in the energy arbitrage market utilizing a BESS with such features.

Reduce curtailing renewable generation assets when demand is low and renewable generation high system-wide oversupply of power and transmission constraints are often thought out to be the two main reasons behind renewable energy curtailment. BESS can significantly reduce renewable curtailment by storing excess energy generated by renewable energy sources. The clean energy stored in the BESS can later be used to minimize operation of existing thermal generators, enhance demand response initiatives, and enable customers to participate in the energy arbitrage market. Energy density and efficiency of the BESS is critical as these factors determine the ability to store more energy when required.