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To obtain a summary of the functioning of BMS and EMS, please refer to our publication on BESS and grid assistance. In this section, we will delve into the integration of BESS with SCADA.
In order to monitor battery readings, the SCADA system generally establishes direct communication with the BMS. Additionally, there may be a need or advantage for the SCADA system to communicate with DC-DC converters, inverters, and auxiliary meters in order to effectively manage the BMS.
According to our analysis, the current situation has presented a notable prospect. Our findings indicate that over $5 billion was allocated to BESS investments in 2022, marking an almost threefold rise compared to the previous year. It is anticipated that the worldwide BESS market will achieve a valuation ranging from $120 billion to $150 billion by 2030, surpassing its current size by more than twofold. However, this market remains fragmented, posing challenges for numerous providers who are uncertain about their competitive positioning and strategies. It is crucial to seize this moment and determine the prime areas of growth in the swiftly advancing BESS market, while also making the necessary preparations for them.
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The commercial and industrial (C&I) sector, which ranks as the second-largest category, is projected to experience a compound annual growth rate of 13 percent according to our forecasts. This growth should result in annual additions ranging from 52 to 70 GWh by 2030 for the C&I sector.
Large-scale deployments of BESS are already underway, with the notable involvement of FlexGen company in a project aiming to establish a BESS capacity of six GWh in due course. A different United States-based company, involved in various industries including energy, has already exceeded that milestone by achieving 6.5 gigawatt-hours (GWh) in deployments of battery energy storage systems (BESS) in the year 2022. A significant portion of the current influx of funding towards BESS is being allocated to services aimed at enhancing the flexibility of energy providers, such as firm frequency response. Over time, the main source of BESS (Battery Energy Storage System) expansion will arise from the development of solar parks and wind farms, requiring batteries to manage their storage requirements for shorter durations.
Additionally, there are the tasks related to system integration, encompassing the comprehensive planning and creation of energy management systems and additional software to enhance the adaptability and utility of BESS. We anticipate these integrators to capture an additional 25 to 30 percent of the profit allocation accessible.
The BMS encompasses the HMI, which denotes the operational state of the BMS (such as charging, discharging, or idle), desired levels of real and reactive power, limits for state of charge (SOC), alarm information, and input from control parameters.
In response to economic and operational challenges, there is a prevailing tendency within the industry to enhance or modify the EMS. Making the decision to retrofit the EMS carries significant weight, hence it is vital to meticulously plan the sequence of retrofitting actions. Approximately 20% of the deal flow that FlexGen handles consists of retrofits.
Anticipated advancements in utility-scale Battery Energy Storage Systems (BESS), which presently represent the majority of new capacity each year, are projected to witness a rapid growth rate of approximately 29 percent annually until the end of this decade. This trajectory positions utility-scale BESS as the fastest-growing segment among the three. Projections indicate that by 2030, annual utility-scale BESS installations could range from 450 to 620 gigawatt-hours (GWh), potentially securing up to a 90 percent market share of the total industry during that period (Exhibit 2).
In the subsequent section of the C&I sector, there exists critical infrastructure comprising telecommunication towers, data centers, and hospitals. Within this specific subset, temporary backup power is typically facilitated by lead-acid batteries through an uninterruptible power supply during instances of outages until the resumption of regular power or activation of diesel generators. Alongside the substitution of lead-acid batteries, lithium-ion BESS products offer a potential solution to reduce dependence on diesel generators, which are less eco-friendly. These products can be seamlessly integrated with sustainable energy sources like rooftop solar. Moreover, in specific instances, surplus energy stored in a battery could enable organizations to generate income through grid services. A number of telecommunications companies and proprietors of data centers are currently transitioning to BESS (Battery Energy Storage Systems) for their uninterrupted power supply needs, recognizing the added advantages that BESS offers.
Critical readings that are transmitted from the batteries/stacks comprise state of charge (SOC), electrical current, voltage, temperature, as well as the quantity of interconnected stacks and alarm indicators. In the case of battery issues such as excessive heat or failure to charge adequately, the SCADA system has the capability to notify plant operators through an alarm displayed on the human-machine interface (HMI).
Battery Energy Storage Systems (BESS) retain energy during periods of excess generation or low demand and subsequently release it during periods of reduced generation or high demand. Similar to any energy source within a solar PV facility, the operation of BESS necessitates constant monitoring and management. This is accomplished through three different systems.
Given these circumstances, it is highly probable that sodium-ion batteries will gain a larger portion of the BESS market. In fact, it is anticipated that a minimum of six manufacturers will commence production of sodium-ion batteries in 2023. Evidently, healthcare providers will need to make choices regarding which technology to invest in. Integrators may consider configuring their systems in a manner that simplifies the transition to sodium-ion batteries once they become readily accessible.
The financial strategies for utility-scale Battery Energy Storage Systems (BESS) are greatly influenced by the unique characteristics of the regions in which providers establish themselves. Typically, players in this sector opt for a revenue stacking approach, which involves aggregating incomes from multiple sources. They may engage in supplementary offerings, arbitrage, and capacity auctions. For instance, numerous BESS installations in the United Kingdom presently focus on ancillary services like frequency regulation. In Italy, there are talented players who have achieved success by emerging victorious in one of the country's capacity auctions that prioritize renewable energy. On the other hand, in Germany, the focus is more on evading expensive grid enhancements in order to seize opportunities. The successful players in the FTM utility sector have recognized the importance of tailoring their approach to individual countries and their regulations, rather than relying on a singular, all-encompassing strategy.
Promote the development of robustness within supply chains. Numerous essential components of BESS (from battery cells to semiconductors in inverters and control systems) depend on intricate supply chains that are vulnerable to disruptions arising from various factors such as scarcities of raw materials and modifications in regulations. When establishing a supply chain strategy, it is important to take into account various factors such as strategic partnerships, multi-sourcing, and local sourcing. Additionally, planning for potential technological changes should not be overlooked. In addition to addressing BESS components, those operating in the industry also face challenges when it comes to engineering, procurement, and construction (EPC) capability and capacity, especially for front-of-the-meter applications. To achieve smooth execution of BESS projects, it is imperative to establish strategic collaborations with prominent EPC companies that have the capacity for large-scale BESS installations.
To gain a comprehensive understanding of the potential advantages that come with BESS, it is ideal to divide the market based on user applications and sizes. Within BESS, there are three distinct segments: front-of-the-meter and BTM residential installations, typically ranging below 30 kWh (as shown in Exhibit 1).
The advancements in technology are driving the growth of the market for battery energy storage systems (BESS). Battery storage plays a crucial role in supporting the generation of renewable energy, facilitating alternative sources to consistently contribute to global energy requirements despite the inherently unpredictable nature of these sources. As battery prices decrease, the versatility offered by BESS (Battery Energy Storage System) will become crucial in various areas such as peak load management, optimizing self-consumption, and providing backup power during power disruptions. These applications are progressively gaining profitability.
FlexGen ensures the reliability of its energy storage systems through advanced design, rigorous testing, and the implementation of HybridOS software, which provides real-time monitoring, predictive maintenance, and intelligent control. Additionally, FlexGen's lifecycle services offer ongoing support and maintenance to maximize system performance and longevity.
FlexGen's battery storage solutions stand out due to their advanced HybridOS software, flexible hardware integration, and the ability to provide scalable, reliable, and efficient energy storage for a wide range of applications.
FlexGen's energy management solutions stand out due to their innovative HybridOS software, which offers unparalleled efficiency, flexibility, and intelligence in energy storage and management. Their commitment to integrating renewable energy sources, along with their expertise in delivering customized solutions and comprehensive lifecycle services, positions FlexGen as a leader in advanced energy management.