Electricity generation and transmission is a complex activity and is most efficient when demand on the grid is steady and predictable. Grid scale Energy Storage Systems will increasingly play a pivotal role starting from power generation until distribution to end-user for the entire chain to run seamlessly at an optimal level. At the generation stage, an ESS can help avoid the need for “wheeling reserve” generators or gas turbines being activated at times of unpredicted high demand. An available ESS ensures no additional power plants are needed to meet rare system peak demand situations or outages at the generation stage and ensures management of grid operations in the most efficient manner. The ESS is available with nearly zero time to come on-line unlike turbines or steam generators. Also, ESS’s are highly beneficial in managing power transmission prudently and avoid congestion periods. Importantly, ESS is an exceptionally effective tool to optimally meet quality power needs across the distribution network and respond to fluctuations in power quality much more rapidly than most alternative means.
Besides meeting the critical needs of conventional power generation, ESS has great utility value where power generation & distribution at megawatt-scale is from renewable energy systems. Where distributed generation/renewable energy generation is installed - especially in-case of non-conventional energy – ESS’s are a game-changer and have the potential to address challenges of supplying the renewable energy to the grid on demand, rather than when the generation source is able to produce. The generator is able to maximize revenues by providing power at times of peak demand and maximum price points. Lowest cost producers become highest profit generators.