Understanding Battery Energy Storage System (BESS) & Its Uses

Battery Energy Storage System (BESS) is one of the technologies that is widely being developed in the renewable energy sector. BESS functions to store energy and use it when needed in the future.

This article discusses the role of Battery Energy Storage Systems in supporting energy demands. Explore the full explanation below.

What Is a Battery Energy Storage System (BESS)?

A Battery Energy Storage System is an advanced technology designed to store electrical energy generated by power plants. The stored energy is released when needed, such as during power outages, periods of high electricity demand, or rising electricity prices.

BESS is often found in solar power plants. During the daytime, solar panels convert sunlight into electricity. This energy is stored in the BESS and released at night when sunlight is unavailable or whenever additional power is needed.

By doing so, BESS helps balance energy supply and demand, improve power system reliability, and support the gradual transition from fossil fuels to renewable energy sources.

In addition, BESS also has several functions, including:

Storing excess energy generated by power plants.
Maintaining stable voltage and electrical frequency.
Reducing peak loads by supplying additional power when energy is needed.
Effectively integrating power plants without disrupting stability.

How Does a Battery Energy Storage System Work?

Generally, a Battery Energy Storage System stores energy and releases it when needed. In detail, here is how a Battery Energy Storage System (BESS) works:

1. Charging Power

The BESS receives electricity from power plants. Charging usually occurs during periods of low electricity demand. The system can also capture excess energy generated by solar panels during sunny conditions or wind turbines during strong winds, preventing the energy from going to waste.

2. Energy Storage

Once charged, the energy is stored in the battery cells as direct current (DC). Inside the BESS, there is a Battery Management System (BMS) that monitors the temperature, battery health, and charge level to ensure the process remains safe.

3. Energy Release

When electricity is needed, the battery releases energy and converts it into alternating current (AC) using an inverter. To remain cost-effective and efficient, the Energy Management System (EMS) determines the optimal timing for energy release.

Types of Battery Energy Storage Systems

According to the International Renewable Energy Agency (IRENA), Battery Energy Storage Systems (BESS) are divided into two main categories, namely utility-scale batteries and behind-the-meter batteries.

Utility-scale batteries are connected to the distribution grid or power plants. Their capacity ranges from several megawatt-hours to hundreds of megawatt-hours. These batteries are usually used to provide grid stability and prevent power disruptions.

Meanwhile, behind-the-meter batteries are connected to electricity meters for industrial, commercial, or household purposes. Typically, these batteries are installed in rooftop solar power systems.

In addition to these categories, lithium-ion batteries have become one of the most widely used technologies in BESS applications. This type of battery is considered to have a longer lifespan and be more efficient.

Then, based on the materials, there are lithium iron phosphate (LFP) batteries whose market share has grown from 48% in 2021 to 85% in 2024. LFP batteries are considered more affordable and safer, with a long lifespan.

Next, BESS can also be made from more affordable tin. Tin-based BESS is usually used in off-grid solar panels. Even so, tin BESS is less efficient and has a short lifespan.

Components of Battery Energy Storage System

A Battery Energy Storage System (BESS) is equipped with several main components, such as:

Battery Management System (BMS): Monitors battery health, balances charging across all battery cells, and prevents overcharging. These tasks are important for improving efficiency and extending battery lifespan.
Battery module or cell: The place to store energy. Generally made of lithium iron phosphate (LFP).
Inverter or Power Conversion System (PCS): Converts direct current into alternating current when the energy will be used by the grid, residential, and business sectors.
Energy Management System (EMS): Optimizes energy usage based on availability, price, and demand. This component also schedules energy release.
Thermal Management System: Maintains the BESS temperature to keep the system operating optimally. Usually, this component includes air cooling or liquid cooling mechanisms.
Safety system: Prevents anomalies or other risks, such as electrical system damage, overheating, or gas overproduction.

Advantages of Battery Energy Storage System

A Battery Energy Storage System (BESS) offers several advantages for the economy, the environment, and business processes. The benefits of a Battery Energy Storage System are as follows:

More cost-effective: BESS can reduce electricity bills by storing energy when demand is low and using it when demand is high.
Instant energy backup: BESS ensures that businesses, data centers, and other critical sectors can continue to operate optimally even when energy supply is limited. BESS is also considered more environmentally friendly than generators because it does not emit emissions.
Self-sufficient energy: Homes and businesses can be more independent because they do not rely on the main electricity source.
Improving grid reliability: BESS can stabilize the grid by storing energy for later use.
Flexibility and scalability: BESS is suitable for many sectors, ranging from households to large projects. The system can also be expanded to meet growing energy needs.
Environmentally friendly: BESS reduces dependence on fossil fuels, lowers greenhouse gas emissions, and promotes cleaner electricity use.

Trusted Renewable Energy Solutions from #YourGrowthPartner

Electricity is generated not only from fossil fuels but also from renewable energy sources such as solar panels and wind turbines. Some renewable energy power plants are also equipped with batteries that can store power for future use.

Regarding solar panels with batteries, Chandra Asri Group, through PT Krakatau Chandra Energi (KCE), operates a Solar On-Grid with Battery Back-up System that combines solar panels with special storage batteries as an energy reserve.

Furthermore, KCE also provides other solar panel mechanisms, such as:

Solar on-grid system: Integrates solar panels with the power grid to send energy directly to the grid without backup batteries.
Solar off-grid system: Operates solar panels independently without connecting to the grid, using batteries to store energy.
Solar hybrid system: Integrates solar panels with other energy sources to create a stable single power generation system.

KCE ventured into the construction of a rooftop solar power pilot project with a capacity of 102 kWp in 2020. KCE's solar power capacity has reached 11 MWp in 2025.

Therefore, its reliability is beyond doubt. As a result, entrust your company's energy needs to Chandra Asri Group and KCE!