Debunking battery myths

Grid-scale batteries are set to play an increasingly important role in Australia’s energy transition. But batteries come in various sizes and shapes, ranging from smaller Battery Energy Storage Systems (BESS) installed on-site behind the meter, which provide financial benefits and back-up power when necessary, to large, grid-scale batteries supporting grid stabilisation and facilitating a greater uptake of renewable energy.

Behind-the-meter batteries are an emerging solution for Australian businesses, but a number of myths may have caused you to question whether installing one is right for your business.

As experts in behind-the-meter BESS, we want to help debunk some of the most common battery myths.

Myth #1: Unlocking monetary value can be complicated

One of the most common myths when it comes to BESS is that it can be complicated to extract monetary value from a battery and achieve a beneficial return on investment.

If you choose to partner with us, Shell Energy will install, own, and manage your BESS on your business site/s while providing regular revenue to your business through fixed payment or variable profit share models we have available. This means that you will unlock revenue over the life of your battery without any of the upfront costs of installing a BESS.

As an energy retailer, we are uniquely positioned to unlock the maximum monetary value that a BESS can provide and pass this value on to you.

Myth #2: There is significant fire risk

A common concern is around the fire-safety aspect of batteries. BESS technology is continually evolving and insights and learnings from previous events have led to the development of safer, more reliable systems. At Shell Energy, we only utilise BESS that come with in-built fire suppression technology and real-time operational condition monitoring to remotely shut down batteries and prevent fires.

Before installing a system, we methodically work through all potential scenarios during the project development and planning stages and embed controls to minimise potential of incidents. We develop emergency response procedures and protocols as part of our BESS implementation program to mitigate the risks associated with batteries.

Part of these emergency response procedures and protocols is complying with government mandates to work with local fire authorities and provide clear understanding on how to safely and efficiently respond and resolve any hazards that may occur once the BESS is energised and operational. All our BESS installations go through rigorous testing prior to being signed off by the relevant authorities as safe to operate.

Myth #3: Batteries only generate value from storing excess on-site solar generation

Another common misconception about batteries is that the only way they can generate value is through storing excess on-site solar generation. This is not the case.

One way that a battery can generate value is through Wholesale Energy Arbitrage, which involves charging your battery from the grid when wholesale energy prices are low and dispatching when prices are high. This can help you save on peak energy prices as well as peak demand network charges. Whether your business can benefit from Wholesale Energy Arbitrage will depend on the terms of your retail electricity contract.

A battery can also unlock value through the Frequency Ancillary Services (FCAS) program, which involves registering your battery as an ancillary service unit in the National Electricity Market (NEM) and taking part in an FCAS Demand Response (DR) program. Participants in this type of DR program are provided monetary compensation for being able to provide a fast injection or reduction in energy to the grid during periods of volatility.

Myth #4: All batteries can be used as a back-up generator

Another common misconception is that all batteries can automatically serve as a back-up generator for your business site/s during a brown-out or black-out.

If you want to use your battery as a back-up in the event of a power failure, it must be specially configured and may involve additional cost to ensure that you have the appropriate electric infrastructure available.

It’s also important to consider whether the size of the BESS you’re considering can support the energy load of your business site as a back-up generator, and for how long. If backup generation is an important objective, your BESS must be appropriately sized and configured for this purpose.

If you’d like to learn more about how back-up generation can be incorporated as part of your BESS installation plan, our expert Energy Solutions team can help you explore your options.