How energy storage is boosting the benefits of solar

The rapid pace of the energy transition demands that we remain nimble, constantly evolving our approaches to stay ahead. This catalyses innovation; new ideas, fresh technology and extensive problem solving.

One area stands out: our power grids need to evolve. The more variable renewable generation is plugged in, the more flexibility that system needs to balance supply and demand. Battery energy storage is an agile option to provide that service.

With that in mind, Lightsource bp is ramping up its energy storage activity.

What energy storage surge offers solar

Utility-scale energy storage development is rapidly growing; as a consequence, the market has tripled in size from 2022 to 2023, according to data from BloombergNEF. The G7 nations alone are planning a sixfold increase between now and 2030. Lightsource bp has been readying for this shift by preparing to include batteries with solar projects in many of the markets where we operate. This strategic shift ensures we can build-out our solar opportunities while simultaneously extending the flexibility and resilience of the grid to host further renewable projects. It future-proofs the power system and our business.

Our expert teams have established a pipeline of more than 60GW of solar opportunities around the world. In many mature renewables markets, energy storage will play a huge role in supporting and even accelerating the delivery of that solar power potential. To prepare for this demand, we have upskilled our business to ensure we can operate as a multi-GW scale energy storage developer at a time when the sector is reaching critical mass in many of the jurisdictions where we also have strong solar power pipelines.

Our first battery project was connected to the UK grid in early 2024, and our teams around the world are progressing more opportunities that will allow us to fully maximise the potential of our solar power pipeline as economies seek out competitive paths through the energy transition. Some markets are more ready than others. Australia and parts of the US and Europe are already benefitting from batteries and will be key markets for Lightsource bp too.

How batteries help make electricity prices more predictable

So far batteries have shown they can do an excellent job providing the critical grid services required to pave the way for the renewable rollout. In the future, grids with more flexibility – from batteries or demand response – could provide more certainty around power prices by better matching supply and demand and smoothing out price spikes, including reducing drops into negative pricing.

Smoothing out those often-unpredictable peaks and troughs in the power market can provide investors more certainty around the revenue of a renewable asset. This broadens the pool of investment available to the sector – crucial if the world is going to triple the volume of renewable electricity generated by 2030, as governments agreed to do at COP29 in Dubai.

Investments in batteries can help incorporate more sustainable electricity sources into our existing infrastructure, delaying or offsetting the wait for grid upgrades. This can again provide value and protect consumers from unnecessary costs.

Batteries unlocking low carbon power grids

While pumped hydro has been around a while, battery energy storage at the utility scale is a complex undertaking with few precedents to draw on. The benefits, however, are crucial to helping drive an effective energy transition. Batteries can clear the path for more low carbon renewable electricity, boosting energy security and supporting the ongoing decarbonisation of our economies.