What is a battery?

Electrons on demand

Batteries store and release electricity when it is needed, providing an essential service to the electricity grid. At a utility-scale, Battery Energy Storage Systems (BESS) are made up of enclosed battery units that are grouped together in a specific location. They act like power stations, supplying electricity to the grid during times when the demand is high or when other sources of power generation become unavailable due to extreme weather conditions or supply disruptions.

The most common type of battery chemistry that is used for a utility-scale BESS is lithium-ion. It is the same battery chemistry technology that can be found in mobile phones, laptops to cordless vacuum cleaners. However, in a BESS, these batteries are designed on a much larger scale for continuous operation.

BESS can store energy from any source, whether it is solar, wind or traditional grid electricity. For example, rooftop solar panels often generate more power than a household can use during the day. Instead of letting this renewable energy go to waste, a BESS can store it for use later, such as during peak demand in the evening when everyone comes home and turns on the air-conditioner or other appliances.

Batteries are designed to respond instantly. If a storm or heatwave causes a sudden drop in supply or spike in demand, a BESS can stabilise the energy system in milliseconds. This flexibility helps improve grid reliability and reduces the need for fossil fuel-based generated electricity.

With ongoing advances in technology, a BESS delivers energy in an efficient, scalable and more cost-effective way. It is a reliable power solution for consumers, industries and entire electricity systems.

BESS projects around the world are accelerating the shift away from coal and gas resources, creating a cleaner, smarter and more resilient energy future.

Why do we need batteries?

The key to a cleaner and smarter grid

Utilities and governments around the world are looking to decarbonise their electricity grids and BESS are playing a key role in supporting the growth of renewable energy on the grid.

Solar panels and wind farms generate electricity only when the sun shines or the wind blows — but our energy consumption does not always match up with when renewable energy is generated. This is why a BESS is important.

A BESS stores surplus renewable energy when it is not used and releases it back to the electricity grid when the demand is high. This allows us to make the most of renewable energy generated – at night, during cloudy days or when major weather events interrupt generation.

It provides an essential service to the grid by quickly injecting or absorbing power to keep the electricity grid stable. This includes balancing supply and demand in real-time, helping to maintain voltage and frequency within safe operating limits, and providing backup power when needed. Coal or gas-fired powered plants used to deliver these services but now, a BESS can do the job faster and cleaner.

Batteries also reduce pressure on costly electricity grid upgrades. With a BESS, network operators have more time to assess the impact of electrification and can defer the need for upgrades to transmission and distribution investments by storing and supplying electricity on a battery for a specific location. This makes the entire electricity system more efficient and cost-effective for energy consumers, utilities and network operators.

Whether it is a household storing excess rooftop solar or a utility-scale BESS supporting energy demands, batteries give us more control over how and when electricity is used. They are not just part of a future grid. Instead, a BESS is a vital tool for making renewable energy dispatchable and therefore reliable, affordable and available when we need it most.

How do batteries deliver energy security for your home?

Reliable power for every household

Keeping the lights on when things go wrong

The electricity grid as similar to a busy highway. Sometimes there is an accident or a sudden traffic jam (like a power plant tripping offline), and cars (electricity) cannot get through. A battery system acts like a fast-response detour: it senses the problem and immediately sends power where it is needed, so the lights stay on and appliances keep running even if something else in the system has failed.

Smoothing out the “rush hour” of electricity use, also called peak shaving

Just like road traffic spikes during rush hour when everyone is heading to work or home, electricity usage peaks when homes and businesses all switch on heaters, air-conditioners or ovens at the same time. Batteries charge earlier in the day when demand and also prices are lower, then let that stored energy flow back out during the busy times. This eases the strain on power plants and prevents overloads and chances of brownouts or emergency blackouts are reduced.  

Emergency backup and starting up the grid

In a major blackout, it can be hard to restart big power stations without any power to kick their systems back into gear. BESS can act like a generator that is already charged and ready: it powers control rooms and essential equipment, helping to jump-start other power plants and rebuild the grid from the ground up. That means hospitals, emergency services and even neighborhoods get crucial power first.

Adapting for tomorrow’s energy needs

The energy system is like a rubber band that needs to stretch in all sorts of directions as we plug in more electric cars, heat pumps, digital devices and use AI powered platforms. Batteries are the stretchy, flexible part. They can quickly absorb extra power or give it back in a flash. This agility lets the grid handle new challenges like the growing use of digital solutions, devices, AI and electric vehicle charging surges without snapping, ensuring everyone can keep using electricity safely and reliably.

What is the energy transition?

Changing how the world is powered

The energy transition describes how the world is shifting away from using fossil fuels such as coal, oil and gas to renewable energy. By using more clean energy from renewable energy sources, we can reduce our greenhouse gas emissions and create a more resilient energy system.

According to the Word Metrological Organisation, 2024 was the warmest year on record at 1.55 degrees Celsius above pre-industrial levels. Global warming has resulted in rising sea levels and has been linked to the impacts of climate change such as the increase in extreme weather events including hurricanes, floods to bushfires.

To avoid the severe impacts of climate change, governments around the world have stressed the need to limit global warming to 1.5 degrees celsius by the end of this century. This would involve reducing greenhouse gas emissions by decreasing our global reliance on energy produced by fossil fuels.

The energy transition is about more than just switching to clean energy: It also means improving energy efficiency, modernising the grid and implementing supporting investments. Renewable energy and BESS projects are key enablers of this transition.

According to IRENA, renewable energy is now the most cost effective source of new power generation. The cost of BESS technology has fallen by 89 percent between 2010 and 2023, making it a smart investment for energy security and accelerating the transition to a cleaner, more resillent energy future.

What is battery trading and optimisation?

Unlocking market value with batteries

A BESS plays a critical role in smoothing the flow of energy into the electricity grid by storing excess generation and releasing it when needed. It is also designed to participate in the electricity market, enabling BESS owners to earn revenue from the energy that the battery supplies back to the grid.

Batteries can capitalise on their energy shifting capabilities through energy arbitrage : charging when wholesale electricity prices are low and discharging when prices are high. A BESS also helps reduce renewable energy curtailment by storing excess generation that would otherwise be wasted during periods of oversupply.

Through battery trading, a BESS participates in the electricity market by delivering services such as frequency control and reserve capacity. Energy stored in the battery is “traded” through trading desks or commercial operators, enabling it to respond in real time to market signals and grid needs. For example, a BESS can operate in the Frequency Control Ancillary Services (FCAS) market by injecting or absorbing energy to help balance supply and demand on the grid. This supports grid stability, enhances reliability and strengthens overall energy security.

BESS participation is typically managed through optimisation software which uses advanced algorithms and artificial intelligence to forecast demand, monitor battery health and co-ordinate energy flows. The software accounts for factors such as weather conditions, electricity prices, grid constraints and battery lifecycle to make real-time decisions on when and how much energy to dispatch. With battery optimisation, a BESS becomes a responsive and valuable asset in the energy system.

Can batteries be recycled ?

Batteries are designed to be recycled

Battery recycling is considered early in the design and procurement stages of BESS projects. This includes:

  • Selecting battery chemistries with higher recyclability
  • Ensuring the packaging and labelling comply with hazardous material standards
  • Designing modular systems that are easier to disassemble and recycle

Utility scale BESS projects typically have an operational lifespan of 20+ years before reaching end of life and requiring decommissioning. While no large-scale existing BESS projects are due to be retired any time soon, battery manufacturers, developers, government, and industry are already preparing for this phase.

By incorporating recycling considerations from the outset, developers aim to reduce waste, recover valuable materials such as lithium, cobalt, and nickel, and minimise the long-term environmental impact.

Most utility-scale BESS are housed in modified shipping containers, containing battery racks, power electronics, HVAC systems, and fire suppression equipment. Many of these components can already be processed through existing metal and electronics recycling streams. In parallel, specialised companies are emerging to handle lithium-ion battery materials specifically.

As recycling technologies advance and the demand for critical minerals grows, establishing efficient, safe, and sustainable battery end-of-life practices will be vital to supporting the clean energy transition.

What happens in the unlikely event of a fire?

Fire mitigation and response

BESS projects are specifically designed to manage and mitigate fire risk with comprehensive safety features built into both the hardware and software technology. We use lithium-ion battery cells which remain the most proven and widely adopted technology for such projects. Whilst the risk is extremely low, a damaged or faulty battery cell can lead to a thermal runaway may occur which is an a chain reaction where overheating triggers further chemical reactions and potential fire. To mitigate this, our BESS projects are equipped with industry leading safety systems that continuously monitor the system , detect anomalies, isolate faults and alert the operators in real time.

As part of our commitment to safety and environmental responsibility, we develop comprehensive Fire Hazard and Management Plans for each of our projects. These include fire detection and protection systems, dedicated firefighting water supplies and other critical controls. We actively engage and collaborate with the local fire departments throughout the development and operational phases of our projects to ensure emergency readiness and coordination.

Are batteries noisy?

Noise mitigation

During construction, anticipated noise will come from activities such as earth works, civil works and truck deliveries or movements.  We always aim to ensure that construction activities occur during designated working hours and in accordance with an approved Construction Environmental Management Plan (CEMP).  The CEMP includes detailed assessments of contruction noise and outlines measures to minimise impacts. Batteries do emit some noise during their operations depending on their operating mode and ambient air temperature. However, the system is designed to minimise operational noise. Where required conservative mitigation measures like acoustic barriers may be implemented to ensure compliance with noise regulations and minimise impacts on nearby communities.