Welcome to this edition of learning of the week and the beginning of yet another series.
We’ve figured out the production from the renewable sources and filled our grids with solar panels and wind turbines. But the hurdle is it doesn’t always show up when we need it. The sun follows its schedule. So does the wind. But the grid? It demands power every second, without fail.
What if we tell you the real future of energy has nothing to do with the generation of electricity at all? But what we do with the power once we have it, and that’s where things get interesting. This is the underlying constraint of modern energy: not generation, but timing.
That’s where BESS (Battery Energy Storage Systems), our topic for this new series, comes into the picture. It’s not glamorous, but an absolutely essential technology quietly growing behind the scenes.
Over the coming weeks, we’ll share our insights with you, one layer at a time, in a way that’s easy to follow and hard to forget. In today’s letter, we’ll lay the foundation and cover:
- Evolution of battery storage
- What is BESS?
- Why has it become necessary at the first place?
- Why is it more important today than ever?
- And, What are the components of BESS?
First things First. How does a Battery Work?
At its core, a battery is just a chemical box that can store energy and give it back when needed. You charge it, it stores power, you use it, it drains and the cycle repeats.
Every battery has three main parts: Anode (–), Cathode (+), and an Electrolyte in between. When you power a device, a chemical reaction pushes electrons from the anode to the cathode; that’s electricity. Once the chemicals are used up, the battery stops working until it’s recharged.
History and Evolution of Battery Storage
The story of the battery over the years is like the story of human ambition; each stage driven by a new need. What started as a lab experiment became a cornerstone of modern life.
1800, Birth of the first battery: It was created by an Italian scientist Alessandro Volta, with a simple stack of copper and zinc plates with saltwater-soaked paper in between. It wasn’t rechargeable and didn’t last long, but it was the first time humans made electricity on demand.
For almost two centuries, battery innovation followed a clear path, the focus was on making them smaller, safer, durable, improving rechargeability and portability. Starting from the bulky lab setups to sleek smartphone cells, the goal was simple: achieving vertical progress, i.e. creating better batteries.
1830s–1860s, Early scientific use: Scientists like Michael Faraday used bulky, unstable batteries to study electromagnetism and chemical reactions. They were leaky and impractical; mostly confined to lab experiments to explore how electricity worked.
1866, The first practical battery: Georges Leclanché developed a zinc-carbon battery with liquid electrolyte, which was more stable and usable than earlier designs. It became the foundation for dry cell batteries used in torches, radios, and early telegraphs.
1881, Rechargeable battery emerged: Gaston Planté invented the lead-acid battery, the first rechargeable battery. Still used in cars and inverters today, it offered reliable, reusable power for early vehicles and backup systems.
1900s, Batteries Go Mass Market: Dry cell batteries became widely available, this batteries were safe, leak-free, and easy to use. They powered flashlights, radios, and toys, using zinc anodes and manganese dioxide cathodes.
1991, The Game Changer, Lithium-Ion Batteries: Developed by Sony, based on John B. Goodenough’s research, Li-ion batteries were lightweight, rechargeable, and long-lasting. They became the standard for phones, laptops, and nearly every portable device we use today.
The above timeline clearly depicts that for a couple of centuries, battery innovation was all about refinement, but now, we’ve entered a new phase which isn’t just about better batteries, but making it bigger, smarter, and system-level batteries powering cars, balancing grids, and reshaping how energy is stored at scale.
2010s, Batteries got bigger: The rise of EVs created demand for larger, scalable battery solutions. Last couple of decades, saw the adoption of safer LFP (Lithium Iron Phosphate) batteries and the rise of gigafactories to mass produce battery cells.
Today, Batteries have become grid-scale Infrastructure: Batteries are no longer limited to gadgets or EVs but are now shifting to grid scale. Batteries have come a long way from running flashlights and phones to powering villages, and even entire city grids. This is the system we are diving into, BESS (Battery Energy Storage System).
What is BESS?
BESS is a large, intelligent setup (system) designed to store electricity when there’s surplus and release it when there’s a deficit. Think of it as a giant power bank for the electric grid. It stores energy generated from sources like solar, wind, or even traditional power plants, and delivers that electricity back to the grid during periods of high demand or when enough power production is not taking place.
The problem it solves: In summary, BESS stores excess electricity and holds it until it’s needed; typically during the time of high demand or low production.
But… I don’t experience power cuts on a daily basis – Why is BESS needed?
At this point, you might be thinking — “If my city already has access to electricity 24/7 without any storage system, do we really need BESS?”
The answer is, BESS is not about solving today’s issue, but preparing for tomorrow’s reality. In most cities, especially across countries like India, BESS isn’t widely deployed yet. But still everything seems fine. The lights are on, every other electrical appliances work, the power rarely cuts out. So naturally, such question arises. Here’s why BESS is more critical than it may seem:
1. Your round-the-clock electricity supply is still fossil-fuel driven: Most cities today rely on coal and gas for generating electricity. These thermal sources can be switched on and off as needed. That’s why the grid feels stable. But this system is polluting, expensive over time, and vulnerable to supply shocks. Though this system works for now, but as we start relying more on renewable energy sources the ability of BESS to store and release energy when required becomes more crucial.
2. The future grid won’t work without storage: Most countries, including India, are pushing to phase out coal and scale up renewables. Solar and Wind are expected to dominate supply. But renewables sources don’t provide energy on demand. They follow nature, not the clock. Therefore, without storage, a renewable-powered grid is like a tap without a tank: useful, but unreliable many times when you need it most.
3. Strong Policy Push: In 2023, the Indian government approved ₹3,760 cr under a “Viability Gap Funding scheme” to support 4,000 MWh of BESS by 2030–31. Financial support up to 40% of project costs with a focus on time-shifting renewables and reducing peak-time pressure on thermal plants. The push is clear, utilities and distribution companies are being guided toward BESS as a long-term grid solution.
In summary, BESS is not about fixing your city today, it’s about future-proofing the entire grid. It is not here to replace the current system overnight, but here to make sure that the grid gets greener, smarter, and more reliable.
Not a Plug and Play
Based on the picture of BESS that we have painted so far, it is easy to picture BESS just like a giant battery pack. Well, this is just the partial truth. BESS isn’t a standalone product. It’s a complete system made up of batteries, inverters, control software, thermal management, safety systems, and much more; all working together in real time. It stores energy, manages when and how to release it, protects itself from overheating or overload, and syncs perfectly with the grid.
It’s more like an orchestra than a plug and play product. It brings everything together batteries, inverters, safety layers, and intelligent software; each playing a critical role in sync. Much like an orchestra, if one part is out of tune, the entire system falters. Smart software acts like the conductor of an orchestra, directing when to store energy, when to release it, and how much to dispatch based on real-time signals. Without this level of coordination, the system fails to operate intelligently and just remains an expensive box of idle batteries. In essence, BESS = hardware + software + intelligence; A system that must be tuned, not simply installed.
Components of BESS
BESS is a coordinated system of electrical, thermal, digital, and mechanical components that work together to store, manage, and dispatch electricity safely and efficiently. Here’s what it includes:
- Battery Racks / Modules: Stores energy in chemical form using technologies like lithium-ion, sodium-ion, or flow batteries.
- Battery Management System (BMS): Monitors and protects cells by managing voltage, temperature, and charge balance.
- Power Conversion System (PCS): Converts power between AC and DC while syncing with grid frequency and voltage.
- Energy Management System (EMS): Decides when to charge or discharge based on demand, price, and grid signals.
- SCADA System: Enables real-time monitoring, control, and fault logging across the system.
- Thermal Management: Regulates battery temperature via air or liquid cooling to prevent overheating.
- Enclosures & Racks: Protects components from fire, weather, and seismic conditions in containerized units.
- Fire Safety Systems: Detects and suppresses thermal or electrical faults using gas or aerosol systems.
- Auxiliary Power: Supplies internal systems like HVAC, lights, and control units with backup support.
- Communications Interface: Connects BESS to grid, EMS, and control rooms using protocols like Modbus or IEC 61850.
Conclusion
For most of history, batteries played a supporting role powering torches, radios, phones and more recently, even cars. The progress was to make them smaller, faster and durable. But today, batteries are stepping into a far bigger role: holding up the energy system of the future. As renewables flood the grid with clean but unpredictable power, BESS brings timing, balance, and control. It reacts in milliseconds, smooths out fluctuations, and turns variable supply into dependable electricity. It’s not a battery in a box. It’s the missing piece that turns renewable ambition into reality.
Up Next…
We are confident that by now foundation has been laid around the basics of BESS. In the next edition, we’ll open up the system and walk you through how BESS actually works from the cells to the software, layer by layer. Stay tuned…
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Happy Investing!!!
😂Meme of the Week🤣
