BESS unlocked: Realizing the full potential of clean energy

It’s no secret that battery energy storage systems (BESS) are quickly becoming a cornerstone of the renewable energy sector, thanks to their ability to provide more dependable power from wind and solar assets to the grid. As we move toward a future where renewable sources generate a significant portion of global electricity, BESS is essential for bridging the gap between production and demand. 

Although BESS comes with many benefits and opportunities, it also introduces new considerations and complexity for owners and operators accustomed to managing wind and solar assets. 

Our "Ask an expert" video series, “BESS unlocked,” dives into this. In the three-part series, Robert Johnson, Power Factors’ Senior Market Advisor, explores BESS’s role in stabilizing energy supply, the unique operational challenges of managing and maintaining storage assets, and the software solutions available to help protect this investment and capitalize on revenue opportunities. 

Managing the complexities of battery energy storage systems 

One of the advantages of wind and solar is that these energy sources are free. We don’t have to pay for the wind to blow or the sun to shine. However, the challenge lies in their intermittent nature. When renewable power generation falls short, other less clean sources like natural gas or coal fill the gap. On the flip side, when there’s an excess of renewable energy, we’re often forced to reduce or curtail generation, essentially wasting free clean energy.  

BESS allows us to mitigate the intermittency issue. When the sun is shining and the wind is blowing, we can store excess energy. Then, when wind and solar production dips but the demand is there, we can discharge the stored energy to the grid. This may sound straightforward, but it’s a huge milestone and a long-awaited catalyst for the growth of the renewable energy industry.  

As owners and operators of clean energy projects integrate BESS into their portfolios, it's important to keep in mind that they are a fundamentally different asset class from wind and solar. Not only do they have unique physical characteristics, but these physical characteristics are greatly impacted by how BESS systems are operated. This introduces complexities that are not typically seen in wind and solar.   

Watch part one of the “BESS unlocked” video series “A catalyst for clean energy growth” to learn more about how BESS supports a reliable energy transition, and the key differences between BESS and wind and solar assets. 

Part 1: BESS unlocked: A catalyst for clean energy growth

Navigating the operational challenges of BESS 

For renewable energy owners and operators, maximizing revenue, minimizing costs, and managing risks are core objectives. Adding BESS to the mix adds complexity, but it also opens up new ways to achieve these objectives. 

Unlike wind and solar, which generate electricity, BESS stores and discharges power. This ability enables new revenue generation opportunities such as energy arbitrage: When demand increases and prices rise, the stored energy can be sold at a higher price, creating additional revenue. However, factors like grid congestion and changing market dynamics can influence pricing dynamics in unexpected ways. And beyond energy arbitrage, BESS must also navigate ancillary service markets, with their own set of opportunities and obstacles. 

Regardless of your operating strategy, respecting the physical constraints and safety requirements of BESS systems is a critical part of daily operations. And, considering that most revenue for BESS systems is generated on only a fraction of days within the year, it’s essential that operational challenges are uncovered and addressed quickly. 

In the second part of our series, "BESS unlocked: Key questions for effective management," Robert dives deeper into BESS management and maintenance. He explores operational strategies for revenue generation and the questions that owners and operators must address daily to uncover potential bottlenecks. 

Part 2: BESS unlocked: Key questions for effective management 

Software solutions for complex operations 

Choosing the right software to manage BESS assets is an important first step toward maximizing performance and revenue. But, with so many options available, how do you know what will be the best fit for your organization? While the specifics will depend on your project, BESS software generally needs to cover a range of areas like controls, performance, safety, health, warranty, and market integration. 

Power Factors’ Unity renewable energy management suite (REMS) covers the entire spectrum of BESS asset lifecycle management, from control and grid integration to asset performance and market operations. Today, Power Factors' customers have around 5 GWh of BESS assets operating globally on our platforms, with another 7 GWh in construction or late-stage development. 

We take several important principles into consideration when architecting our Unity REMS solutions, including: 

• Scalability 

• Extensibility 

• Robustness 

• Flexibility 

• Portfolio-wide visibility 

Watch the third and final video of our “BESS unlocked” series, “Key considerations for choosing the right software” to learn more about the “why” behind these principles and to listen as Robert breaks down the top things to consider when choosing BESS software. From scalability and flexibility to advanced analytics and maintenance management, we’ll help you make the right choice for your business. 

Part 3: BESS unlocked: Key considerations for choosing the right software  

Robert Johnson is Power Factors’ Senior Market Advisor. Robert has been with Power Factors since 2016 and works closely with product, technology, and sales teams to help guide our development and execution strategies. Follow him on LinkedIn! 

Interested in learning more about Power Factors’ Unity renewable energy management suite? Get in touch!