NERC report shows battery storage requires action to capitalize on reliability benefits

Battery storage could provide major reliability benefits, according to a report released by the North American Electric Reliability Corporation (NERC) this week, but better reporting is required, along with actions from industry and regulators to maximize its potential.

In Impacts of Electrochemical Utility-Scale Battery Energy Storage Systems on the Bulk Power System, NERC stressed that battery storage could benefit peaking capacity, reduce the need for new generation and transmission infrastructure and provide services like frequency response, ramping, and voltage support that are critical to reliability. However, impending increases in battery energy storage systems could push them beyond existing reliability standards and guidelines.

“North America currently has less than 2 GW of battery storage, but that capacity is projected to increase 100 percent to 4 GW by 2023,” Thomas Coleman, NERC’s chief technical advisor of Engineering and Standards, said. “The rapid transformation of the transmission grid to meet carbon goals while maintaining reliability, security, and resilience is a primary focus for industry and regulators. It is abundantly clear that battery energy storage systems have a key role in accomplishing that goal.”

Unfortunately, battery storage data is lacking in consistency from reporting entities. NERC argued for better reporting and data mechanisms to correct that.

At the same time, industry and regulators alike will have a large role to play as battery storage expands — either helping or hindering its expansion. NERC recommended that system planners prepare ahead of time and guarantee deployed battery storage provides the necessary reliability to maintain bulk power system reliability, security, and resilience. They should also assess the impact of size, location, and operating characteristics on reliability as incentives spur expansion.

The real advantage of battery storage is how it complements variable energy resources such as wind and solar power. NERC urged studies to determine the dynamic stability impacts of battery storage interconnection and its ability to offer capacity suited to long-term and contingency reserve margin requirements, along with reliability. The organization itself may seek to form a task force to study future implications of battery energy storage systems and their overall effects on bulk power system reliability and resilience.