Let’s Talk About BESS (Battery Energy Storage Systems)

By Leone King,
Communications Manager, Energy Storage Canada

Canada’s current installed capacity of energy storage is approximately 1 GW.

Per Energy Storage Canada’s 2022 report, Energy Storage: A Key Net Zero Pathway in Canada, Canada is going to need at least 8 – 12 GW to ensure the country reaches its 2035 goals.

While the gap to close between the above values is substantial, the last year has seen several landmark developments for the industry in Canada with the 2023 Federal Budget detailing three refundable investment tax credits available to a diverse range of energy storage technologies, the announcement of the 250MW Oneida Energy Storage project partners achieving financial close, and the announcement of the first gigawatt of Ontario’s projects to meet their procurement for 2.5MW of storage.

Energy storage is becoming increasingly ubiquitous, even outside industry circles.

With a 68% increase in energy storage worldwide in 2022 and additional market commitments bringing the expected global installations to 130GW by 2023, its unsurprising awareness of the technology is on the rise.

Some technologies, like pumped hydro, have a long history in Canada.

Others, like battery energy storage systems (BESS) are new technologies to many and raise questions, especially as project approvals anticipate the integration of these assets into peoples’ communities.

Community members want assurances that these assets are cost-effective, provide value to the community, won’t detract from existing industry, and are safe.

Moreover, it’s important for communities to have confidence in these projects.

In terms of current BESS projects in Canada to date, most are lithium-ion based battery chemistries.

Lithium-ion systems are crucial to provide responsive and flexible power to the grid. They can help to ease constraints in areas where the grid is operating at its full capacity, balance the intermittent nature of renewable assets, and provide more consistent and cost-effective production of other generation types, such as nuclear.

Energy Storage ensures we make the best use of all the energy resources on our grid.

A lot of consideration goes into where these facilities are placed to prevent potential reliability issues in the future. Consultations are undertaken to ensure that the locations selected provide the maximum benefit for the land used, even though BESS typically have a smaller footprint than generation installations.

Additionally, while grid-scale batteries are often perceived as entirely new technology, lithium-ion systems have been operating for years.

Industry experts have dedicated a great deal of effort to learning the best ways to operate them efficiently and safely. BESS designs are perpetually being updated to reflect the most recent findings, for example, reducing the need for walk-in enclosures.

Moreover, BESS are regulated by several categories of safety standards relating to the component equipment, installation, and fire prevention safeguards. Original equipment managers (OEMs) have tested strategies and tools to ensure safe operations, such as 24/7 system monitoring, battery management, ventilation, site design, heat/smoke/gas/fire detection, advanced shutdown systems, fire suppression systems, thermal imaging and more.

Canada’s energy storage industry has a strong foundation of experience building safe and reliable systems with an extremely low risk of fire events. And Energy Storage Canada continues to work with its members and industry experts to ensure that these high standards continue to be met.

As part of that, we’re pleased to share our most recent report, commissioned by Energy Storage Canada, and completed by the engineering consulting firm, BBA, to further the knowledge of relevant stakeholders regarding best practices and recommendations for BESS today and for future proposals.

Included with an extensive compilation of background information on BESS broadly is a survey of four BESS operators and their safety records, environmental safeguards, and recommendations for what BESS projects should include. The report details both what measures have been put in place to ensure the safety of the projects and what decision-makers should be looking for in assessing proposed projects.

Ultimately, we need to continue to have the highest standards when it comes to procurement and project selection to ensure we are successful in creating a resilient, sustainable, and affordable grid for all Canadians.

We need to be sure that in every province, ratepayers and businesses have access to reliable power, even at times of peak energy use. Canadian businesses need to know their investments will be supported with enough energy to meet their needs. And governments need to know that the projects selected will support the country’s climate goals, while ensuring affordability for ratepayers.

It’s important for the public to be confident in the projects being built in their communities, to know that each project has been properly considered, and that the industry understands how high the stakes are.

Energy storage – BESS and beyond – is going to be critical to Canada’s transition, so we know we need to get these projects right. Together we will.

You can find a copy of the full report HERE on ESC’s website.