What are the main benefits of utility-owned batteries

Utility-owned batteries offer several key benefits that enhance the reliability, sustainability, and cost-effectiveness of the electrical grid. Here are the main advantages of utility-owned batteries:

Benefits of Utility-Owned Batteries

Cost Savings and Economic Benefits
- Peak Shaving and Cost Reduction: Utilities can charge batteries when electricity is cheaper and discharge them during peak demand hours, reducing costs and increasing savings for customers and utilities alike.
- Deferral of Infrastructure Upgrades: By providing additional capacity during peak times, utility-owned batteries can defer or eliminate the need for costly transmission upgrades, which in turn reduces infrastructure costs.
Integration and Optimization of Renewable Energy
- Renewable Energy Maximization: Batteries can store excess energy produced by renewable sources (like solar and wind) and release it when needed, thus maximizing the value of these resources and ensuring a stable grid supply.
- Renewable Curtailment Reduction: Utility-owned storage helps reduce the instances where excess renewable energy is curtailed due to grid constraints, facilitating more efficient use of clean energy sources.
Grid Reliability and Resilience
- Enhanced Reliability: Batteries improve grid reliability by providing backup power during outages and ensuring consistent electricity supply during extreme weather events or high demand periods.
- Grid Stability Services: Utility-owned batteries can offer instantaneous response to maintain grid frequency and voltage, supporting the overall stability and resilience of the electrical system.
Strategic Operational Flexibility
- Non-Wires Alternatives: Utility-owned storage can serve as a strategic asset to address specific grid needs such as congestion management, which may not be fully addressed by market solutions. This allows utilities to tailor storage deployment to their system requirements.
- Transmission System Services: Batteries can be deployed to manage transmission congestion and support the overall efficiency of the transmission network by optimizing energy flow according to demand.
Alignment with Clean Energy Goals
- Sustainability and Clean Energy Transition: Utility-owned batteries support the transition to a cleaner energy system by enabling more effective integration of renewable sources, reducing reliance on fossil fuels, and helping achieve carbon emission reduction targets.