It’s often possible to use resources immediately while also saving some for later. It can be cost-effective for electric utilities to generate power when it is the most affordable and then save it for when demand is highest.
To do this, we need to use batteries.
To help manage supply and demand, some electric utilities use a variety of battery energy storage systems. These can vary by battery material—be it electrochemical, mechanical or thermal—as well as by size, with some operating at utility scale. Other, smaller batteries can be placed in residential garages.
Utility-scale battery systems are designed for energy storage to support the electric grid, requiring high initial investments but offering significant long-term savings.
Residential battery systems cater to individual homes, providing more energy independence and savings while still representing a significant investment.
Utility-Scale Battery Storage
Utility-scale storage systems are large installations that store huge amounts of electricity.
Some can store several megawatt-hours, which could power 500 homes for several hours. Larger installations can store enough to power roughly 1 million households.
The key benefit of batteries is balancing supply and demand. Batteries can take energy produced when the cost of production is cheaper and save it for periods of high demand when utilities may see higher prices.
This can be especially useful in areas where demand can spike or fall rapidly throughout the day.
Batteries also pair well with renewable generation sources, such as solar and wind. Sometimes, on particularly sunny or windy days, solar panels and wind turbines produce more power than a community needs at the time. Batteries can save that energy for when the sun sets or the winds fade.
Electric utilities can also deploy utility-scale storage systems at electric substations to enhance grid resilience.
If a power outage means no electricity is reaching a substation, on-site batteries can continue sending power to critical infrastructure—such as hospitals and emergency services—until power is restored.
Residential Battery Storage
With batteries, homeowners can reduce their energy bills and ensure a steady supply of power, even during grid disruptions and outages.
Residential battery storage systems are compact installations designed for individual homes, typically ranging from a few kilowatt-hours to 10s of kWh in capacity. Often paired with residential solar panels, these smaller systems allow homeowners to store excess energy generated during the day for use at night or during power outages. Residential batteries can help provide a level of energy independence.
However, the initial cost of buying and installing a residential storage system is expensive, which may deter some homeowners.
Electric utilities are increasingly recognizing the benefits of residential battery storage. These systems not only support grid stability and resilience, but can help reduce costs for utilities and their customers. Some utilities offer energy-storage programs and rates, which means homeowners can contribute to a more efficient and reliable energy system that benefits the entire community.
As electric utilities navigate the complexities of modern energy supply, utility-scale and residential battery energy storage systems can be a benefit to all of our lives.
