Lithium-Ion Battery Energy Storage And Emerging Risks For Business
The growing demand for lithium-ion battery energy storage systems (BESS) is due to the benefits they provide consumers, such as time-shifting, improved power quality, better network grid utilization, and emergency power supply. According to the U.S. Department of Energy (DOE), the lithium-ion battery energy storage segment is the fastest-growing rechargeable battery segment worldwide and is projected to make up the majority of energy storage growth across the stationary, transportation, and consumer electronics markets in the next 10 years.1
What Is a BESS?
A BESS is a rechargeable battery system that stores energy generated by the electric grid or renewable energy sources for use at a later time when needed. Many battery types can be utilized for a BESS but, by the end of 2019, more than 90% of the large-scale battery storage power capacity in the United States was provided by lithium-ion batteries.2
Lithium-ion BESS is often used in conjunction with solar arrays and wind farms by organizations of all sizes and types, from energy utilities and large data centers to retail locations, offices, and schools. Residential homes may utilize a BESS to store energy from roof-mounted solar panels or emergency backup power from the grid.
While these systems do offer multiple benefits, they can present significant hazards when unexpected events occur. Having a plan in place to address the risks is an important consideration when adding a BESS to your home or business electrical system.
Lithium-Ion Battery Technology
Lithium-ion powered BESS is perhaps the single most important technological advancement in the energy storage arena due to its high energy density, improved efficiency, and deep discharge cycle.
As the technology is becoming more broadly used, the cost of lithium-ion batteries has dropped significantly, contributing to the increased deployment. Lithium-ion technology is expected to continue driving market demand for BESS in the United States and globally.