Importance of Battery Energy Storage Systems

This spring, California hit a new milestone: battery storage delivered more than 10 GW of instantaneous electricity—2 GW more than last year. Last week, on June 17th, we were even close to 11 GW with 10.9 GW of batteries discharged at 8:00pm. Even more striking: during those peak hours, batteries became the largest single source of electricity on the grid, outpacing gas, solar, and wind. Is that good news? Yes… and no. ✅ Yes, because batteries are stepping in when solar drops off in the evening, helping avoid additional gas-fired generation. They store excess solar energy during the day and release it when demand peaks—exactly how a clean grid should work. ⚠️ But there’s a catch. As summer heats up, air conditioning demand rises, and there’s less surplus solar left to charge the batteries. That’s why we often see the biggest battery discharges in spring or fall, not in July or August. So while solar + batteries is a big part of the solution, it shouldn't be the only one. To get the most out of battery assets—both for the grid and for returns—accurate solar generation and price forecasts are essential, along with smart optimization across markets. Gone are the days when the playbook was simple: charge at midday, discharge in the evening. In today’s market, battery dispatch is anything but routine. And building those tools is an exciting challenge!

In just one year, California wasted enough clean energy to power more than 200,000 homes. In 2022, the state curtailed a staggering 2.4 million MWh of solar and wind—a 63% spike from the year before. Why? The grid simply couldn’t handle all of that energy.   Rather than seeing this as a loss, co-locating solar with battery storage turns curtailment into a revenue opportunity. But adding storage isn’t enough—getting the size right is key. Proper battery sizing can impact everything from project profitability to long-term battery health. The right storage capacity allows projects to store excess energy when prices are low and sell it when prices are high, improving ROI and keeping the LCOE competitive. On the other hand, an oversized or undersized battery can lead to unnecessary costs, lost opportunities, and reduced lifespan. That’s exactly why our team at enSights developed a storage sizing simulator with an advanced engine. This simulator quickly models different scenarios and identifies the best battery size for projects. With curtailment on the rise, having the right insights can make all the difference. As grid constraints tighten, optimizing storage sizing isn’t just a best practice—it’s essential for making the most of our clean energy future. #EnergyStorage #RenewableEnergy #SolarEnergy #GridOptimization #Curtailment #BatterySizing #LCOE #BESS #EMS #SmartGrid

California generates more solar power than it can use. The challenge isn’t making clean energy—it’s storing it. The state’s battery capacity jumped from 500 megawatts in 2018 to nearly 16,000 megawatts in 2025. During peak solar hours, California often produces excess electricity that would otherwise go to waste. Now those giant batteries scattered across the Mojave Desert capture that surplus and release it when the sun sets. This couldn’t come at a better time. Data centers powering AI are consuming electricity at unprecedented rates, while electric vehicle adoption is reshaping energy patterns. At peak times, stored solar power supplies up to 30% of California’s electricity. We’ve figured out how to bottle sunshine—but energy demand continues to rapidly increase and more solutions like this are needed to keep our grid resilient. Post edit: incredible how much interest this post got! It looks like there was a hiccup in the picture regarding nuclear generation, don’t want to miss that, find the updated image in the comments below:! #SolarEnergy #EnergyStorage #AI #ElectricVehicles

Battery costs have dropped more than 75% since 2015, unlocking a key driver of the energy transition. By storing excess solar and wind power when supply is high and delivering it when demand peaks, batteries help balance an increasingly renewable grid. As costs continue to fall and production scales up, cheaper batteries will play a critical role in decarbonizing transportation and the power sector. The energy transition is driven by markets, and lower battery prices are making renewable energy more competitive than ever. International Energy Agency (IEA): https://lnkd.in/daHnUBHB

I recently spoke with Cameron Murray from Energy-Storage.news about some of the major trends impacting utility-scale BESS in the US — and Enel North America’s role as the largest BESS owner-operator in the ERCOT, Texas market.   Some key points from our conversation: 👉 With increasing load from electrification and data centers, extreme weather events, and greater renewables penetration, BESS is critical for preserving reliability and affordability – now and into the future. 👉 Increased domestic manufacturing will enable a fast, localized BESS industry. But until that can take shape, we need rules that offer greater supply chain clarity and regulations that compensate developers and operators fairly. 👉 Young technologies also need a thorough incentive structure to achieve meaningful scale. We welcome both the stand-alone investment tax credit and all ITC and PTC adders as necessary to speed up storage technology growth and allow more investor certainty.   Despite headwinds, the value of BESS is undeniable, especially given changes to the world’s generation mix — new IEA data shows renewable electricity supply climbed to 30% in 2023 and is projected to reach 35% by 2025. At Enel, we aim to help lead the industry as BESS becomes a major component of the energy sector.    Read the full conversation: https://lnkd.in/eJ4WrwUz   #EnergyStorage #BESS

🌞 Innovations in Energy: California's Journey Toward a Sustainable Future. As we head into what will probably be another temperature record-breaking summer in 2024, I was looking back at some of the innovations and growth that California and #CAISO have been showing the energy industry in the past few years. #California, a renewable energy leader, aims for 100% clean electricity by 2045. With CAISO, it's integrating 35,000 MWs of renewables into the grid, 9,000 MWs added in the last 3 years. Some interesting facts about California & CAISO: ☀ California has been a #solarenergy leader, but Texas has rapidly increased its utility-scale solar capacity since 2019, nearly doubling it from 2019 to 2020 and again from 2020 to 2021. This growth is due to lower construction and operating costs of solar power plants, contributing to their expansion on the Texas network. Unlike California, where policies have largely driven solar growth, Texas market dynamics have played a central role, highlighting economic shifts in the #energysector. 🔋 In California, battery energy storage systems helped prevent #blackouts during the 2020 and 2022 heat waves. In August 2020, when demand peaked at 46.8 GW, power outages occurred. However, during the September 2022 heat wave, despite higher demand reaching 51.4 GW, new battery energy storage systems provided 3.4 GW of peak generation, helping prevent blackouts. The increased battery capacity introduced between 2020 and 2022 has had a significant impact on solving grid problems. 🌱 In 2022, California enacted significant regulatory reforms aimed at streamlining the process of building thousands of megawatts of clean power. The state has a comprehensive #electricity supply and energy storage planning process in place to help accelerate new clean energy projects. 💲 California's $7.3 billion grid modernization plan, approved by CAISO, is key to reaching the state's #carbonfreeenergy goal by 2045. It includes new high-voltage lines to connect clean energy sources, potentially lowering electric bills. This is crucial as more areas discourage natural gas and promote #cleanenergy. 🔄 CAISO manages California's energy grid, balancing supply and demand while integrating renewables. #BatteryStorage success shows the importance of investing in #renewables for grid reliability globally. As we look to the future, California's energy landscape serves as a testament to the power of innovation, resilience, and the collective effort toward a sustainable and reliable energy future. Powin remains committed to supporting CAISO in improving network reliability and resilience. We currently have 1,300 megawatt-hours (MWh) commissioned and 3,180 MWh under construction in California. Our advanced battery energy storage solutions, coupled with our commitment to innovation and collaboration, will help ensure a secure and sustainable energy supply in California and beyond. 🌟 #RenewableEnergy #GridReliability #Sustainability #CAISO