The “Battery In the Grid” (B.I.G) model is transforming how DSO’s build and maintain infrastructure and turning batteries into an exciting investment tool.
Electricity grids are at a tipping point. The swift pace of electrification demands that Distribution System Operators (DSOs) upgrade their aging infrastructures. But with the future of the energy sector being so unpredictable, can DSO’s and society afford the massive cost and time investments in grid upgrades without the promise of high utilization and a return?
The BESS solution
Battery Energy Storage Systems (BESS) is the quick and easy solution to many of the problems facing DSO’s: bottle necks, power quality, and cost and time of building an infrastructure. Unfortunately, regulations prevent DSO’s from reaping all the benefits that BESS offers, and therefore investing in their own batteries rarely makes sense.
Introducing (BaaS) Battery as a Service!
The concept of Battery as a Service (BaaS) is simple: don’t buy; rent. This innovative approach, already proving successful in Australia and Scandinavia, shifts the investment from a capital expenditure to an operational one. By learning from these examples, where BESS rentals have supported grid stability and energy transition, DSO’s in the rest of the EU and beyond can deploy BESS quickly, without the financial burden, and with the flexibility to adapt to future energy scenarios.
Distributed BESS
The appeal of distributed BESS lies in its ability to offer local solutions for local problems. By being strategically placed where issues occur, these systems provide both targeted relief to the local grid, and through aggregation provide combined services to the broader network. This localized approach is not only efficient but also ensures that all BESS can be interconnected, operating as a unified entity to enhance grid stability.
What’s more, the movable nature of these systems ensures that as the needs of the grid evolve, BESS can be relocated to where they are most needed, maximizing their utility throughout their lifespan.
Decoding value stacking
For Battery as a Service (BaaS) providers, the benefits of value stacking are significant. Owning the batteries allows them to fully utilize each unit’s capabilities to deliver multiple services, maximizing both utility and profitability. BaaS providers can flexibly switch their operational focus depending on what the market needs at any given time — from stabilizing the local grid during high-demand periods to engaging in profitable energy trading when demand drops.
This ability to leverage a single asset for various revenue-generating activities not only optimizes the use of the battery but also significantly enhances the return on investment. For instance, a BaaS provider might help a local DSO manage voltage fluctuations during peak usage times, then shift to capitalizing on energy arbitrage opportunities as market prices fluctuate. This strategic use of batteries ensures that DSOs can avoid costly infrastructure upgrades, TSO’s benefit from greater grid stability, and BaaS providers achieve excellent financial returns.Commissioning
“Pixii’s Battery in the Grid (B.I.G) model and Battery as a Service (BaaS) approach enable DSOs to upgrade infrastructures efficiently and cost-effectively, turning batteries into dynamic investment tools.”
Henrik Krogsæter, Product Manager EV charging & DSO
Service offering
Beyond simple energy storage, BESS enhance grid performance through several energy services. These services support the grid’s stability and efficiency, crucial for adapting to the dynamic demands of modern electricity networks.
- Frequency support: The quick and accurate power delivery capabilities of BESS makes them perfectly suited for providing rapid power balancing for the grid and ensuring a stable grid frequency
- Energy arbitrage: BESS are like savvy traders in the energy market, buying low when energy is cheap and selling high during peak price periods.
- Grid tariff reduction: Much like buying a season ticket to avoid peak travel costs, BESS can help reduce grid usage fees by lowering energy consumption when tariffs are high.
- Local power quality services: Enhancing the local power supply, BESS ensures that businesses and communities enjoy reliable and high-quality electricity.
- Avoiding grid connection costs: Fast deployment of BESS means quick scalability to meet energy demands, sidestepping the extensive process and cost of traditional grid expansion.
- Local flexibility markets: These markets represent a significant opportunity. They’re essentially energy marketplaces where BESS can be used to quickly respond to local energy congestion, earning revenue for this on-demand flexibility.
The Pixii BESS solution is more than an infrastructure upgrade; it’s a commitment to a resilient, adaptive energy future. By adopting Pixii’s innovative approach, DSO’s and BaaS providers are not just keeping pace with the present; they are gearing up for a future that values sustainability, efficiency, and adaptability above all else.
