Battery Energy Storage Systems (BESS) play a crucial role in supporting the integration of renewable energy and providing reliability to the grid. Different regulatory frameworks govern the development of BESS projects around the world. In general it can take 4-5 years for a project to be operational. The expected life of a BESS is 20+ years. 

Each region or regulator may have unique characteristics that define the planning and approvals process for BESS projects. This reflects the importance of ensuring planning guidelines, environmental concerns, as well as potential risks to nearby neighbours are addressed and mitigated. But what does it take to build a BESS?

Development: It goes beyond the location

This phase of the project may take up to three years. Finding the right piece of land is complex - and so is developing a BESS project. The location of a BESS matters. One of the key factors that can determine if a BESS project serves the needs of energy retailers or network operators is its proximity to the electricity grid. Technical and financial feasibility studies form part of the initial assessment that looks at the potential for a BESS to be connected to the grid, the network market conditions, and energy system needs of the region that it serves.

During this stage, project developers need to consider land use planning requirements such as whether it can be used for industrial developments or the conditions under how it can be developed. In addition to land use planning rules, environmental assessments form part of the planning requirements and they may include considerations on the impact of protected habitats, native vegetation to local species and what measures need to be taken to protect them.

Aside from all these assessments that need to be undertaken, developers need to have a genuine conversation with local communities that will host a BESS project. It is important for a developer to engage with communities early and to acknowledge their concerns and interests. Although a BESS will usually be several hundreds of meters if not kilometers away from the nearest dwelling, being a good neighbour starts with reaching out to communities proactively to address any concerns, provide updates on the progress of the development and being available during the construction phase to answer any inquiries and questions. In fact, BESS developers have a great opportunity to play an educational role and provide insights into the advantages of BESS when it comes to advancing the energy transition and delivering energy security as well as local benefits to the community. 

If conditions are met, the project is moved towards what is known as a Development Approval (DA) or Planning Permit.‍

Pre-Construction and Financial Close: Getting Ready to Build

Once the DA or Planning Permit is granted, refinements are made to the design of the BESS project moves to align this with approvals. This may sometimes require changes to the detailed designs, the inclusion of new safety requirements for the project or features such as landscaping or noise barriers.

The developer will need to bring the project to financial close where investment or debt funding is secured for the project. This may include commercial structures that are necessary for the delivery and long-term operations of the project. When funding has been secured for the project, it is financially viable with risk management strategies in place.

Contractors, battery suppliers to civil engineers are then appointed to get the BESS “shovel-ready”.

Construction: Bringing the Battery to Life

The construction phase can take about 18 months. Construction of a BESS project begins with site preparation where the land may be cleared and levelled. A boundary fence is installed and access roads are added to support heavy vehicles and workers. These early works lay the physical foundation for the project to be developed. Once the site is ready, equipment installation commences with the delivery and assembly of components such as battery enclosures, transformers and switchgear. New substations may be installed or upgraded for grid connection. The construction of a BESS project is closely co-ordinated with regulators, local councils and project delivery partners who work together to achieve project milestones. When it is completed, the BESS is ready for commissioning, marking a key milestone as it moves towards commercial operation.

Operations: Storing and Supplying Energy

Once a BESS is connected and commissioned, it becomes a fully operational part of the grid. Now, the BESS can store excess energy from the grid or renewable energy sources and release it during periods of peak demand for 20+ years.

The ongoing operations involve continuous monitoring, system optimisation and routine maintenance. A BESS can be traded using software platforms ensuring the system can respond to market signals and grid conditions quickly. This is where a BESS delivers its core value: stabilising the grid, supporting the integration of renewables and enabling more flexible, reliable energy use across the network.

Decommissioning: Taking a Responsible Approach at the End of Life

BESS projects have a typical operational lifespan of 20+ years. At the end of their lifecycle, a planned decommissioning process is involved as part of the DA or Planning Permit.

This covers the safe dismantling of the asset, the responsible recycling or disposal of equipment and for the site to be remediated.

Decommissioning is considered early in the project’s development to meet environmental and regulatory compliance. By planning for its closure right from the start, a BESS project can be designed to minimise its environmental impact beyond its operational life.

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