ABB: Unlocking Battery Storage with BESS-as-a-Service

Global electricity demand is increasing, caused by widespread electrification and the growth of digital technologies. According to the IEA, electricity demand from data centres alone is projected to more than double globally to 945TWh by 2030.

The IEA predicts that, in the US, total electricity demand will increase by approximately 25% between 2023 and 2030. To meet this rise in demand without relying on fossil fuels, businesses are turning to renewable energy sources.

Battery energy storage systems (BESS) offer a solution by storing surplus solar and wind energy for use during periods of higher demand. The IEA notes strong growth in this area with around 42GW of battery storage added in 2023.

However, the large upfront investment and infrastructure requirements have made BESS inaccessible for many organisations.

A new whitepaper from ABB and GridBeyond explores how a BESS-as-a-Service model could assist businesses in navigating these energy challenges.

Removing financial and technical barriers

The BESS-as-a-Service model changes the financial burden from a large capital expenditure (CAPEX) to a predictable operating expenditure (OPEX). Instead of purchasing and operating a system outright, customers pay a fee for a behind-the-meter battery.

Under this model, ABB designs, installs and manages the system over a 10-to-20-year term. All performance, maintenance and replacement responsibilities remain with ABB while optimisation and market participation are handled for the customer.

Stuart Thompson, President of ABB Electrification Service, says: "The business case for battery storage has never been stronger. We need energy solutions that deliver immediate financial returns, operational resilience and the flexibility to adapt to changing market conditions.

"With BESS-as-a-Service, the barriers to entry are eliminated: no upfront capital, no technology risk, just immediate access to cost savings and new revenue opportunities. Whether companies are pursuing sustainability goals or simply looking to optimise their energy spend, battery storage delivers tangible value from day one."

Stuart explains that this service-based model is the first of several planned by ABB to help businesses adopt advanced energy solutions without the initial financial pressure.

“Battery storage technologies are a key enabler of the energy transition," he continues. "By removing financial and technical barriers, our new ‘as-a-service’ model will empower businesses to take control of their energy needs, strengthen their resilience and unlock new value from their assets."

On-site storage and decarbonisation

As energy systems decarbonise, variable renewable sources like wind and solar create gaps between when energy is generated and when it is consumed. Without storage capacity, this excess energy is often curtailed, meaning it is wasted.

On-site storage can reduce a company's reliance on the grid, flatten demand peaks and increase the use of self-generated solar power.

Commercial and industrial BESS units typically range from 500kW to 20MW and can occupy a footprint equivalent to about four parking spaces making them feasible for sites with limited space.

These battery systems can also complement other on-site assets like heat pumps and electric vehicle (EV) charging infrastructure by moving solar energy from midday to power evening operations.

The role of AI in energy management

Artificial intelligence is a critical component in optimising energy storage.

According to Michael Phelan, CEO and Co-Founder of GridBeyond, AI is essential for forecasting energy availability and market prices to improve asset utilisation.

“Through its AI platform, GridBeyond is a key player in supporting businesses’ energy transition and helping to deliver net zero globally,” says Michael.

He explains how AI technology is used for real-time decision-making.

“At GridBeyond, we use AI for real-time decision-making, from forecasting renewable energy availability to optimising production schedules and asset participation in energy markets. Our AI algorithms analyse historical data, weather patterns and other relevant factors to generate precise forecasts that enable us to anticipate fluctuations in energy supply and demand,” Michael adds.

This AI-driven analysis also extends to forecasting market prices, which helps to optimise how assets are used and can maximise revenue.

“This enables us to navigate dynamic market conditions, anticipate challenges and seize opportunities proactively, ensuring our managed batteries remain agile and competitive in a rapidly evolving landscape,” says Michael.