Lithium-ion batteries (LIBs) and hydrogen (H 2) are promising technologies for short- and long-duration energy storage, respectively. A hybrid LIB-H 2 energy storage system could thus offer a more cost-effective and reliable solution to balancing demand in renewable microgrids.
Lithium-ion (Li-ion) batteries are the most highly developed option in size, performance, and cost. A broad ecosystem of manufacturers, system integrators, and complete system providers supports Li-ion technology. However, the vendors best equipped to bring value to microgrids bring the right components to each project.
The Inflation Reduction Act incentivizes large-scale battery storage projects. And California regulations now require energy storage for newly constructed commercial buildings. The same microgrid-based BESS can serve either or both of these use cases.
As a supplier of lithium batteries and energy storage solutions, our targets are focused on the following markets: microgrid solutions, industrial/commercial energy storage, communications/data centre battery energy storage, transportation/utility energy storage systems, and uninterruptible power supply (ups).
Another use case for battery storage on microgrids is aggregating BESS as a virtual power plant (VPP) to correct imbalances in the utility grid. At the grid level, when the supply of power from renewables temporarily drops, utilities need to respond quickly to maintain equilibrium between supply and demand and stabilize the grid frequency.
Note that the impact on microgrid composition is modest up until a 45% decrease in LIB energy storage capacity cost, after which the LIB power conversion capacity grows significantly, indicating a possible tipping point to use LIB for longer-term energy storage. Fig. 10. Impact of Energy Storage Technology Cost on Sizing and LIB Energy-Power Ratio.