South Street Storage

A megawatt is a unit of power, equal to 1000 kilowatts. An energy storage system’s MW size indicates its power potential. Megawatt hours, on the other hand, take the duration of an energy storage system into account to capture the full energy capacity of the asset. To determine megawatt hours, power capacity (MW) is multiplied by storage duration (for example, four hours). For example, a 5MW system with a four hour duration would have a storage capacity of 20MWh.

It’s important to note that the specific revenue opportunities available to BESS will vary depending on a number of factors such as the location of the system, the characteristics of the local electricity market, and the specific capabilities of the BESS itself. For each system, there will be an Energy Storage Service Agreement (ESSA) between the owner and a customer around how and when energy storage services will be provided. Different use cases offer different values and revenue opportunities. These potential monetized revenue sources include load shifting, providing back up power to capacity markets or grid stabilizing as examples.  

BESS operators develop robust emergency response plans based on standardized best practices that are customized for each facility and technology. These best practices include extensive collaboration with first responders and address emergency situations that might be encountered at any power facility, including but not limited to extreme weather, fires and security incidents. They also address emergency response roles and highlight the importance of coordinating with first responders—particularly during planning—to ensure there is a complete and detailed shared understanding of potential emergencies and the proper safety responses. Emergency response plans also include contact details for subject-matter experts who can advise first responders on appropriate actions for each situation in a timely manner.

BESS are currently deployed and operational in all environments and settings across the United States, from the freezing temperatures of Alaska to the deserts of Arizona. These systems are designed with associated heating and cooling systems to ensure optimal battery operations and life based on the environmental conditions at the installation location. Since battery energy storage facilities are built to withstand disruptive weather events, they also help increase resilience to extreme weather events, prevent power outages, and provide back-up power.

Grid-scale battery life depends on usage but can last for 20 years or more. One of the earliest deployed grid-scale battery energy storage systems, put into operation in Alaska by the Golden Valley Electric Association, has been in continuous operation since 2003. Batteries will degrade based on numerous factors such as chemical composition, number of charge and discharge cycles, and the temperature of the environment that the batteries are exposed to.

The U.S. lithium-ion battery recycling industry is growing rapidly to accommodate batteries from both electric vehicles and energy storage systems. Companies are moving beyond simple recovery of raw materials and into direct recycling of electrode materials that can be built sustainably and cost-effectively into new batteries. Indeed, energy storage applications provide the opportunity to repurpose batteries from end-of-life electric vehicles, extracting maximum usage from these units for the benefit of consumers.