Finding the Best Site for Grid-Scale Energy Storage

“When it comes to grid-scale energy storage, location is everything. The optimal siting of a BESS can make all the difference in providing cost-effective, reliable, and sustainable services to the grid.”

Battery energy storage systems (BESS) are becoming increasingly popular in the electric grid as a means of balancing power supply and demand, improving power quality, and integrating renewable energy sources. One critical decision when implementing a BESS is where to locate it within the grid. Each location has its advantages and disadvantages, depending on the specific use case.

Here are the three primary locations for BESS systems within the grid:

1. In the Transmission Network BESS systems located in the transmission network can provide a broad range of ancillary and transmission-related services. These systems can replace or defer investments of peaking capacity, provide operating reserves to respond to changes in generation and demand, or be used to defer transmission system upgrades in regions experiencing congestion from load or generation growth. BESS systems in the transmission network can be interconnected at the transmission substation level.
2. In the Distribution Network Near Load Centers Storage systems located in the distribution network can provide all the services as transmission-sited storage, in addition to several services related to congestion and power quality issues. In many areas, it may be difficult to site a conventional generator near load in order to provide peaking capacity, due to concerns about emissions or land use. Due to their lack of local emissions and their scalable nature, BESS systems can be co-located near load with fewer siting challenges than conventional generation. Placing storage near load can reduce transmission and distribution losses and relieve congestion, helping defer transmission and distribution upgrades.
3. Co-Located with Variable Renewable Energy (VRE) Generators BESS systems can also be co-located with VRE generators such as wind and solar farms. Co-locating BESS with VRE generators can increase the amount of VRE that can be integrated into the grid while maintaining grid stability. This can be especially valuable in regions with high penetrations of VRE and in areas with limited transmission capacity. Co-locating BESS systems with VRE generators can also reduce curtailment of VRE generation and can provide additional revenue streams to the generators through services like frequency regulation, ramp control, and energy shifting.

When siting a BESS, it is important to analyze the costs and benefits of multiple locations to determine the optimal siting to meet system needs. Considering all combinations of services the BESS can provide at each potential site will provide a better understanding of the expected revenue streams and impact on the grid.

In conclusion, the location of a BESS within the grid depends on the specific use case and the services it is intended to provide. BESS systems can be located in the transmission or distribution network or co-located with VRE generators. Careful consideration of the siting location will ensure the BESS is used effectively and provides the maximum benefits to the grid.