Creating resilience and robustness through our Battery-as-a-Service

Within the European energy sector, the paradigm is shifting toward sustainability and adaptability, where the intermittent nature of renewable sources such as wind and solar power increase in the European energy mix. Furthermore, we see this modern energy landscape facing several vulnerabilities, including natural disasters and cybersecurity threats. This has accentuated the role of decentralized batteries in the pursuit of a resilient and robust energy system. Decentralized batteries, placed behind the meter, have a multifaceted role. These assets offer diverse applications and can harmonize energy supply and demand as one important contribution to creating long-term grid stability.

Behind the meter – the creation of a sustainable value proposition
The diverse applications of batteries placed behind the meter make them more than mere grid-stabilizing devices. They are versatile tools with a multitude of applications. A positive financial aspect of decentralized batteries resides in their potential to curtail the necessity for costly grid upgrades. Through the localized optimization of energy storage, these batteries can defer capital-intensive investments in transmission and distribution infrastructure. This, in turn, translates into substantial cost savings for utilities and consumers.

A battery placed behind the meter also builds a long-term value both for the asset owner and the energy system as a whole  since they can create several different value streams. The utilization of the batteries can be monitored and thus controlled to create the best value during each given point in time over the full lifetime of the system.​

Energy resilience: Behind-the-meter batteries provide backup power during grid outages. This resilience is especially valuable in regions prone to volatile weather events, grid instability, or frequent blackouts. Businesses and industries can maintain essential operations, reduce downtime, and avoid financial losses during power disruptions.

Energy cost reduction: By storing electricity during low-cost periods and using it during high-cost periods, behind-the-meter batteries can help users save money on their energy bills, improving the overall value proposition.

Managing peak demand: Electricity demand varies throughout the day, with peak demand periods being more expensive for utilities and industries. Behind-the-meter batteries can store excess energy during low-demand periods and discharge during peak times, reducing electricity bills through demand charge management and time-of-use optimization.

Increased self-consumption and energy optimization: As renewable energy sources like solar and wind become a larger part of the energy mix, the intermittent nature of these sources creates grid stability issues. Co-located batteries can store excess renewable energy generated during the day and release it when needed, making renewable energy more reliable and enhancing its value.

Grid support and grid decentralization: Behind-the-meter batteries can provide grid services, such as frequency regulation, voltage support, and grid capacity relief. These services help stabilize the grid, in some cases reduce the need for costly grid infrastructure upgrades and promote grid decentralization by enabling distributed energy resources.

Increased property value: Industries and businesses equipped with energy storage systems may see an increase in property value. Potential buyers and tenants find the added resilience and energy cost savings attractive.

Incentives and regulations: Many governments offer incentives, tax credits, or rebates for behind-the-meter energy storage installations. That is, pure taxonomy-related advantages when installing battery systems in properties and industries. These financial incentives can improve the return on investment and enhance the long-term value proposition.

So, these behind-the-meter assets are like Swiss Army knives for the energy sector, adapting to a range of roles, from stabilizers to problem-solvers.

Empowering independence and making decentralized batteries “every person's asset”
Decentralized batteries empower energy consumers with unprecedented control over their energy utilization and expenditures. When combined with intelligent energy management systems, these batteries enable consumers to engage in demand response markets, tailoring energy consumption to price signals, and even redistributing excess energy to the grid. However, when we evaluate value for money regarding these assets, being part of our most sensitive infrastructure, we often end up discussing asset cost rather than quality, robustness, and security.

It needs to be understood that investing in a battery system demands both technology insight and deep market knowledge, which is not necessarily possessed by general industries and business owners. Thus, an asset that suddenly has become critical for the operation of facilities and building strong businesses lies far beyond the knowledge horizon of the buyer. It takes deep technical knowledge to understand what gives the most value for money during the lifetime of these assets. Another aspect is what technology is judged to be secure for this utilization, considering all software being built into sensitive steering mechanisms of the systems, managing how and when they should operate.

This is why Battery as a Service (BaaS) is considered a logical, strategic and innovative solution. It offers a smart and pragmatic approach to energy storage by providing cost-effective, scalable, and risk-mitigating solutions. It leverages the expertise of service providers to optimize battery performance, encourages sustainability, and promotes wider adoption of energy storage technologies.

BaaS allows businesses and industries to access the benefits of energy storage without the high upfront costs of purchasing batteries. It creates energy storage accessibility to a broader range of consumers, including residential, commercial, and industrial users.

Users merely pay for the service on a subscription or pay-as-you-go basis, which can make it more affordable and accessible. This means speeding up the deployment of the batteries since technical risks do not have to be considered for the industry or facility that provides space for installation.

Owning and maintaining batteries also comes with operational and maintenance risks, including degradation over time. BaaS providers assume these risks, ensuring that users have access to well-maintained and optimized battery systems. BaaS providers also have specialized knowledge and expertise in energy storage technology. They can monitor the performance of battery systems in real-time, optimizing their operation and efficiency. BaaS providers typically offer scalable solutions, allowing users to adjust the capacity of their battery systems as needed. This flexibility is especially valuable for businesses and utilities that may need to expand their energy storage capabilities over time.