Battery Energy Storage Systems (BESS) are critically important and are becoming even more central to modern power systems as renewable energy adoption increases.
The key advantages of BESS include:
1. Grid stability and mitigation of supply intermittency
BESS enhances grid stability by balancing supply and demand in real time. During periods of peak demand, stored energy can be discharged into the grid, while during off-peak hours excess electricity can be stored. This dynamic operation enables a safer, more stable, and more reliable electricity supply across the country.
2. Addressing the intermittency of solar and wind energy
Renewable energy generation is inherently dependent on external factors such as sunlight availability and wind speed. BESS enables excess renewable energy to be stored when generation is high and dispatched when generation is low, ensuring a consistent and reliable power supply throughout the day.
3. Enabling microgrid implementation
Microgrids—localized, small-scale power networks—play a vital role in electrifying towns and villages where grid access is limited or unreliable. Battery Energy Storage Systems are a foundational component of microgrids, allowing these systems to operate independently and reliably. In future articles, we will explore microgrid technologies in greater detail and explain how they function.
Given the wide-ranging benefits of BESS for both governments and industry, the Government of India has introduced several incentives to promote adoption, including Viability Gap Funding (VGF) and the Production-Linked Incentive (PLI) scheme.
Despite this support, cost remains a major barrier to large-scale deployment. At present, the high capital cost of BESS makes it challenging to build strong investment cases. These costs are driven by multiple factors, including but not limited to:
High raw material costs
Significant balance-of-system requirements, including power conversion systems, battery management systems, and thermal management infrastructure
High financing costs due to the nascent nature of the technology
That said, progress is being made to address these challenges. Innovative startups such as Off-Grid Energy Labs are working to develop lower-cost BESS solutions, helping to accelerate adoption and improve commercial viability.
As highlighted earlier, grid stability represents a major global opportunity, and battery energy storage plays a critical role in enabling resilient, future-ready power systems.
At Oribi, we welcome conversations with individuals and organizations looking to build or collaborate in the BESS space and explore potential opportunities for future partnerships.
