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Battery Storage Meets Rising Grid Demand

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Mouser Electronics White Paper FTM ESSs store energy on the producer's side of the utility meter and do not impact the customer's side of the utility meter. Examples include ESS installations near wind and solar farms to capture excess energy during periods of high generation. In the case of wind, this could be sustained high winds; or, in the case of solar, this could be clear and bright skies over an extended time when there is less demand than energy production. ESSs installed in this way can be used to balance out the demand as seen from the distributor's side of the grid, where it may be necessary to release energy from these FTM ESSs during periods of low renewable generation. This could happen at night when solar energy generation drops off, during calm wind periods where wind generation softens, or during storms where solar energy is low. BTM ESSs are located after the utility meter and are not subject to control or provisioning by the utility grid systems. Examples of this include residential battery storage systems. Battery-based ESSs are the most common and most easily accessible to most residential homeowners and even renters. However, other types of residential ESSs exist (Figure 1). Home Battery Energy Storage Systems Many governments now provide financial incentives, especially in the United States, encouraging residential homeowners to invest in BTM ESS. 6 Some of the incentives for BTM ESSs are based on how grid energy is priced, and some depend on whether the residence has renewable energy solutions installed. In the case of simply having a BTM ESS, these systems can reduce a consumer's energy bills by peak shaving during high-demand times, typically during midday, and charging their BTM ESS during lower-priced periods, often at night. If renewable energy solutions are available, this could change the dynamic of when to direct energy to the ESS and when to extract the energy. Moreover, suppose a utility can access substantial renewable energy generation or ESSs. In that case, the distributors may not have more variable incentives or price changes for grid-tied ESSs or renewable energy. In the case of off-grid installations, ESSs are often considered essential for providing energy when residential energy generation isn't available or transient demand exceeds energy generation. Other trends also contribute to the increased feasibility of battery ESSs for residential use cases, such as the prevalence of smart meter installations in new home builds, meter replacements, or infrastructure upgrades by utilities. Unlike traditional meters, which may be checked once a month or less, smart meters are typically equipped with some type of wireless communication technology and may communicate a residence's energy usage as often as every 15 minutes. Smart meters eliminate the need for estimated bill readings, enabling enhanced intelligence on a given residence's energy usage and ensuring that energy retailers are accountable. With a battery ESS equipped with the intelligence of a smart meter, a residence can become an element of a virtual power plant (VPP), where the intelligent battery ESS is used to optimize electrical energy generation and storage in a distributed fashion. Fortunately for battery-based ESSs, advances in battery technology, such as new and safer lithium battery chemistries like lithium iron phosphate (LiFePO4) and sodium-ion batteries, are growing battery supply chains and increasing consumer access to large amounts of battery energy storage at more affordable prices. Just as the development of larger wafer sizes, the expansion of silicon integrated circuit (IC) technology supply chains, and competition have led to more affordable and accessible IC technology, the same is occurring for battery technology. In a more direct way, EV battery systems are also being designed to contribute to residential energy during disrupted utility access, such as power outages from storms. Many of the latest EVs with large battery banks are equipped with optional charging electronics that can also extract energy from the EV batteries and power the home through inverters (Figure 2). Hence, EVs may transform from vehicle-to-load (V2L) to vehicle-to-home (V2H). Figure 2: Alternative electric energy storage system in a modern home garage. (Source: inthasone/stock.adobe.com; generated with AI)

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