Balancing Energy Fluctuations

BESS provides an automated frequency regulation (aFRR) service and other support services to help maintain a stable frequency on the grid. Transmission system operators pay for these services because grid stability is critical.

Peak Shaving

BESS allows energy consumption to be reduced during peak periods when electricity prices are highest. Energy is stored during times of low demand (and low prices) and used during peak hours, resulting in significant cost savings.

Arbitrage (Price Differential Trading Strategy)

BESS can buy energy when prices are low and sell it back to the grid when prices are high. This process of trading energy on the daily and intraday market generates a profit.

Supporting Renewable Energy Sources (RES)

BESS improves the efficiency of renewable energy sources such as solar and wind by storing excess energy produced during high production (e.g. sunny days) and releasing it during low production (e.g. at night). This balancing ensures a stable supply of energy and increases revenues from RES.

Provision of Back-up Energy

BESS acts as a backup energy source for businesses and households. In the event of a power outage, BESS can supply power immediately, a service for which customers are willing to pay.

Participation in Capacity Markets

In some regions, BESS providers may receive payments for being ready to supply energy on demand, helping to ensure that there is sufficient capacity to meet demand on the grid.