Project owners are also responsible for the electricity costs associated with the BESS auxiliary load during operation. The electricity cost for auxiliary loads depends on the energy consumption (kWh) and the pricing structure set by independent system operators or utilities. For example:
BESS stands for Battery Energy Storage Systems, which store energy generated from renewable sources like solar or wind. The stored energy can then be used when demand is high, ensuring a stable and reliable energy supply.
For certain projects, backup power must be provided for the BESS auxiliary load as required by the BESS supplier or fire codes. Some BESS suppliers mandate uninterrupted power to maintain the operation of thermal management systems, ensuring battery temperatures remain within desired limits to minimize degradation.
If a BESS product cannot meet these backup power requirements as mandated by the code or the Authority Having Jurisdiction (AHJ), an external backup power source needs to be provided. Options for backup power include local distribution network feeders (if available with sufficient kVA rating) or backup generators.
A BESS is as it sounds, it's a series of batteries that are arranged in a system to store energy to be used at a later time. Typically, a BESS consists of multiple batteries that start at the cell level which can range in shape and size from pouches to cylinders. For simplicity, think of an extremely large AA battery.
When properly designed and regulated, BESS can operate safely near residential areas. Systems include safety features and emergency protocols to protect nearby residents if an incident occurs. Do battery storage systems create noise or visual impacts in communities?
Most of the BESS systems are composed of securely sealed battery packs, which are electronically monitored and replaced once their performance falls below a given threshold. Batteries suffer from cycle ageing, or deterioration caused by charge–discharge cycles.
The first step in setting up a BESS is ensuring compliance with local building codes and safety regulations. These codes vary from region to region but often focus on aspects such as fire safety, structural integrity, and electrical system safety.
The average price of lithium-ion battery packs is $152/kWh, reflecting a 7% increase since 2021. Energy storage system costs for four-hour duration systems exceed $300/kWh for the first time since 2017. Rising raw material prices, particularly for lithium and nickel, contribute to increased energy storage costs.
As we look ahead to 2024, energy storage system (ESS) costs are expected to undergo significant changes. Currently, the average cost remains above $300/kWh for four-hour duration systems, primarily due to rising raw material prices since 2017.
Energy storage system costs for four-hour duration systems exceed $300/kWh for the first time since 2017. Rising raw material prices, particularly for lithium and nickel, contribute to increased energy storage costs. Fixed operation and maintenance costs for battery systems are estimated at 2.5% of capital costs.
In 2025, lithium-ion battery pack prices averaged $152/kWh, reflecting ongoing challenges, including rising raw material costs and geopolitical tensions, particularly due to Russia's war in Ukraine. These factors have led to high prices for essential metals like lithium and nickel, impacting the production of energy storage technologies.
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Figure 1: A simplified project single line showing both a battery energy storage system (BESS) and an uninterruptible power supply (UPS). The UPS only feeds critical loads, never losing power.
An uninterruptible power supply (UPS) or uninterruptible power source is an electrical apparatus that provides emergency power to a load when the input power source or mains power fails.
But if you want to keep your home Wi-Fi network and some other key electronics up and running in the event of an outage, an uninterruptible power supply, or UPS, is worth the investment.
For large power units, dynamic uninterruptible power supplies (DUPS) are sometimes used. A synchronous motor/alternator is connected on the mains via a choke. Energy is stored in a flywheel. When the mains power fails, an eddy-current regulation maintains the power on the load as long as the flywheel's energy is not exhausted.
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