Post: Battery Energy Storage Systems (BESS): what are the benefits?

Battery Energy Storage Systems (BESS): what are the benefits?

The transition to a more sustainable future is being driven by the need for reliable, flexible, and scalable energy solutions. Ones that address growing electricity demands, lack of grid capacity, and support companies’ net-zero goals. Battery energy storage systems (BESS) play a critical role in helping businesses and industries to optimise energy use, reduce costs, and enhance grid reliability without the need for upfront capital investment.

BESS use batteries, for example lithium-ion batteries, to store electricity at times when supply is higher than demand. They can then later release electricity when it is needed. BESSs are therefore important for the replacement of fossil fuels with renewable energy.

In this article GridBeyond looks at the benefits of BESS for businesses and how companies can access BESS without upfront capital.

What are the main types of battery energy storage systems?

Battery energy storage systems come in essentially two varieties: “Behind-the-Meter” (BTM) systems, also referred to as “small-scale battery storage”, which include residential-level and “Front-of-the-Meter” (FTM) systems.

BTM batteries are connected behind the utility meter of commercial, industrial, or residential customers, primarily aiming at electricity bill savings. BTM commercial & industrial (C&I) batteries are typically batteries, around 100kWh to 5MWh in size, installed at a business. They take up the equivalent space of a large refrigerator all the way up to a shipping container. Importantly for the business case, the battery co-exists alongside the existing building energy load. It uses stored energy to offset the building’s grid demand. It also interacts with other energy assets that might also be installed, such as rooftop solar, heat pumps or EV charging. This can take the form of storing excess energy from the solar panels or discharging energy for use across heat pumps and EV charging.

Front-of-the-Meter systems are larger and directly connected to the power grid. These are often large standalone assets or co-located with equally large solar or wind farms. They do not interact with buildings. Instead, they interact with the grid and focus on providing balancing services. BTM commercial and industrial batteries are also distinct in terms of size from the very small residential storage. Batteries installed in homes are typically in the 5kWh to 15kWh range.

Benefits of BESS

BESS offer numerous advantages across the energy value chain; from grid operators seeking stability to renewable developers looking to smooth generation output. But for businesses, BESS can be a powerful tool to lower costs, unlock new revenue streams, and strengthen sustainability credentials.

• reduced energy costs: BESS allows businesses to store electricity when prices are low and use it when prices peak. This form of energy arbitrage can significantly reduce exposure to volatile wholesale markets and lower overall energy bills
• enhanced participation in flexibility markets: by pairing BESS with demand response (DR) programmes, businesses can respond to grid signals instantly, even without changing core operations. Stored energy can be discharged during DR events to meet commitments without impacting production or service delivery.
• resilience: BESS provides an on-site backup source of power, reducing downtime and safeguarding against costly interruptions during outages or grid instability. This is particularly valuable for energy-critical sites such as manufacturing plants, data centres, and healthcare facilities.
• optimised use of on-site renewables: for businesses with solar, wind, or combined-heat-and-power (CHP) generation, BESS maximises self-consumption by storing excess generation for later use. This helps to avoid exporting energy at low market prices and reduces reliance on grid-supplied electricity
• reduced network charges: with careful management, BESS can be used to avoid peak demand periods that drive high network charges resulting in direct cost savings
• sustainability and carbon reduction: by shifting consumption away from fossil-fuel-heavy peak periods and making the most of renewable energy, businesses can cut their carbon footprint and strengthen ESG performance
• future-proofing against market change: energy markets are becoming faster, more dynamic, and more complex. A well-integrated BESS, especially when combined with automation and digital twin optimisation, ensures businesses can adapt quickly to new grid services, market rules, and revenue opportunities.

BESS is more than a battery. It’s a strategic asset that, when deployed effectively, delivers financial, operational, and environmental value.

How GridBeyond can help

Not all businesses want, or can afford, to own their assets. With our turnkey asset funding model GridBeyond helps companies to access the full benefits of battery storage while avoiding major capital outlays and delivering profitability from day one.

After the installation of your on-site battery, GridBeyond’s AI-powered platform connects directly to your system and other on-site assets, enabling:

• returns by stacking multiple value streams, delivering financial, operational, and environmental value
• full automation of dispatch for speed and precision
• digital twin modelling to simulate performance, test strategies, and optimise revenue stacking before implementation
• continuous market monitoring to adapt participation strategies as rules and opportunities evolve
• multi-programme optimisation to ensure your battery is always deployed where it delivers the greatest financial return

With GridBeyond, your BESS doesn’t just store energy; it becomes an intelligent, revenue-generating asset that supports resilience, reduces costs, and accelerates your net-zero journey.

Comprehensive energy services

Beyond funded asset solutions GridBeyond’s portfolio encompasses a wide array of services tailored to meet the unique needs of diverse industries:

• demand response and process optimisation: utilising artificial intelligence and advanced analytics, we help businesses streamline their energy consumption, leading to significant cost savings and improved operational efficiency
• energy price risk management: our experts provide strategic guidance and tools to navigate the complexities of energy markets, enabling clients to mitigate risks associated with price volatility
• path to net zero: we assist organisations in developing and implementing robust strategies to achieve net-zero emissions, aligning with global sustainability goals and enhancing corporate responsibility. Our services include carbon footprint analysis, reporting, and the development of actionable plans to reduce environmental impact
• corporate PPA and hedging: we facilitate corporate power purchase agreements and hedging strategies, providing clients with long-term price stability and supporting the integration of renewable energy sources
• electric vehicles and fleet management: our solutions support the transition to electric vehicle fleets, offering infrastructure planning, energy optimization, and management services to ensure a smooth and efficient shift to sustainable transportation

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