Batteries to Become Important Part of the Grid

The electric grid is a complex machine that has been developed since its inception to become more and more reliable. One way utilities have been able to uphold this standard is by getting energy from power plants that churn out a consistent and predictable level of electricity. However, emerging renewable energy technologies do not. Sometimes the wind blows, sometimes the sun shines.

Utility sized battery storage is becoming an increasingly sought after piece to America's energy puzzle. Large scale grid storage would allow utilities to "smooth" energy fluctuations. The poles and wires of the grid can neither have too much electricity or too little. The batteries would allow an opportunity for grid operator to store excess energy or use the stored power to cover any spikes in demand.

The question going forward is not if, but how it is going to look. Two options have begun to emerge with pilot projects testing their respective feasibility. One option is to build a large scale battery (generally made from a lot of smaller batteries) like A123's 8 MW battery. The other is a distributed network of batteries that could cover a single neighborhood which would create a much more nimble and faster acting more customized problem averting system.

Utilities in Illinois purchase their electricity on a real-time market similar to what you'll see for Power Smart Pricing customers. Just like our program, one way to lower your costs for electricity is to take advantage of lower priced hours. Putting batteries onto the grid would create a cost saving opportunity to recharge a battery at night when prices are the lowest, then that stored energy could underbid any of the electric generation that is occurring during a demand peak.

To learn more A123's massive battery, click here.
To learn more about the distributed battery model click here.