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Globally, BESS is Expected to Comprise 50% of the Energy Storage Market

Ashish GaikwadWho could have been better than Honeywell Automation India Limited? As we further explore this segment, we get hold-off Honeywell, the company pioneering in energy storage production. In an exclusive interview with Niloy from BISinfotech, Ashish Gaikwad, Managing Director, Honeywell Automation India Limited talks about Honeywell’s Renewable Energy solutions, especially Battery Energy Storage Solution (BESS) and how it is helping the renewable energy sector produce energy more efficiently, lower Total Cost of Ownership, Boost Revenue Streams, and to Optimize Asset Performance while reducing the environmental impact and improving safety and regulatory compliance. Edited Excerpts below.

Kindly tell our readers about key features, specs of Battery Energy Storage Systems (BESS) and key case study you want to highlight?

Today’s electricity supply system dictates a two-way communication schema that integrates multiple sources of energy to create a more efficient grid system. This can often be a difficult balancing act given the unpredictability of power consumption mixed with the inevitable failure of generation and distribution equipment and the volatility of weather patterns that can have a direct effect on power production and consumption. Therefore, the inclusion of battery energy storage systems makes the grid more resilient and effective.

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Honeywell’s Renewable Energy solutions, especially Battery Energy Storage Solution (BESS), help the renewable energy sector produce energy more efficiently, lower Total Cost of Ownership, Boost Revenue Streams, and to Optimize Asset Performance while reducing the environmental impact and improving safety and regulatory compliance.

key feature key specs

In this respect, I would like to mention a critical project that Honeywell executed for Saturn Power, a Canadian renewable and clean energy provider.

Saturn Power chose Honeywell, to provide a multiple megawatt-hour battery energy storage system (BESS) solution at a commercial site classified by Ontario’s grid operator, the Independent Electricity System Operator (IESO) as a Class A customer of electricity with high peak demand. Honeywell supplied batteries for the BESS that Saturn Power integrated to provide global adjustment mitigation services and helped the customer achieve lower electricity bills. Honeywell’s technology enables the batteries to charge during off-peak times and draw from BESS when energy demand on the grid and costs spike — typically on hot, air conditioning-intense summer days or cold heating-intense winter days.

Experience has shown that deploying batteries for peak shaving can help decrease supply costs due to the lower portion of energy drawn from the grid onsite. Ultimately, that can enable reliance on fewer non-renewable sources of energy while providing a resilient and reliable solution for the customer or energy storage system host. In the renewable and clean energy market, Honeywell’s unique, modular battery management technology minimizes installation and commissioning time, making it ideal for quick deployment and a fast return on investment.

This rising populace, coupled with environmental challenges, puts even greater pressure on already strained energy resources. Hence liberating electricity seems to get more traction with renewables getting mainstream. Given the new demand, how does BESS fit into marking the future of electricity?

Under the Paris Climate Agreement, India’s Nationally Determined Contributions (NDC) include reduction in carbon intensity by up to 35% (from 2005 level) by 2030.[1]  India

also hopes to get around 40% cumulative electric power installed capacity from non-fossil fuel sources within the same time frame.2

Over the last five years, installed capacity for renewable energy increased 226%, and renewable energy now accounts for a little over 23% of the total installed generation capacity in the country.3

India has set an ambitious target of 175GW installed renewable power by 2022. With the continued growth of renewable energy, battery energy storage technology is seen as an enabler to expedite the transition to a future where renewable energy plays a central role in the push for decarbonization and decentralization.

ESS will help reduce carbon footprint, optimize energy costs, and manage grid stability by:applications

Which sectors, applications are of your key targets? Also, your thoughts/ comments on the storage’s upfront cost?

BESS stores large amounts of renewable energy for use at the most basic level when demand is high. On the most sophisticated level, BESS expands control, reduces costs, and creates revenue streams.
The sectors of interest to BESS applications are – Utilities (Front of the meters), Commercial and Industrial (Behind the meters) and renewable integration (of distributed renewable assets).

Some of the benefits of the Honeywell BESS include:

– Increased savings: Honeywell BESS helps customers reduce peak demand and energy costs by leveraging low-cost stored energy, innovative control algorithms maximize distribution efficiency.
– Revenue gains: BESS helps increase revenue opportunities for customers. End customers can invite building owners to join demand response programs, expand renewable energy and other programs to their clients, and more. The system enables customers to lower costs while also adding revenue.
– Improved customer experiences: Honeywell BESS assures high quality, seamless power for mission-critical customers such as hospitals, police precincts, data centers, and other critical facilities. BESS ensures there is no discontinuity in power supply.
– Scalable solution: Honeywell can customize BESS designs to meet the exact needs of customers. Solutions are fully independent, but they can operate together for scalability, expansion, and reliability.

Installation of BESS entails capex costs as well as operations and maintenance costs. Current studies indicate that lithium-ion batteries offer the best option today in terms of cost, performance, calendar and cycle life, and technology maturity.4

In continuance, the greater the value stacking, the higher the returns that can be generated from BESS project. This is to say, it is imperative that BESS is used for more than a single use case, and we treat the BESS value proposition as a bundle of multiple adjoining benefits – such as capex deferral, cost avoidance on operations and maintenance of Peaker plants, etc.- instead of looking at individual siloes of benefits.

Your expert comments on India’s battery market, types of battery and the future trends shaping the indigenous market?

India’s battery market is bifurcated into the market for Electric Vehicle batteries and stationary storage batteries. Battery storage application areas in the Indian market are found in bulk storage, ancillary services, Transmission & Distribution (T&D) operations and behind the meter (BTM) applications. As the mix of renewables increase in the overall energy portfolio, we expect ancillary services to become a major driver supporting the power system or grid operation in maintaining power quality, reliability, and security of the grid. These services may include scheduling and dispatch, frequency regulation, voltage control, generation reserves, etc.

The other development in battery integration is expected in the T&D space, with batteries helping to defer capex investments in transmission and distribution infrastructure. We also expect significant adoption of battery storage systems among the commercial and industrial customers, who would leverage behind the meter installations for energy arbitrage, reducing power costs, improve power quality and pursue grid independence.

windThe two major types of batteries prevalent in India currently are Lithium-Ion and Metal Air. The uptake of flow batteries depends on their cost viability and remains to be commercially tested and adopted at a large scale.

BESS is relatively new in India and some of the barriers to adoption include lack of financial incentives and upfront capital costs. A NITI Ayog study highlights some of the barriers to adoption of BESS. These include dual tariff systems (to charge and discharge), licensing (generation and consumer licenses), long cycle time for recovering investments, dependency on regulatory rate-setting and revenue recovery cycles, etc.5

However, clearer financial incentives – supported by regulatory policies and benefits of BESS – will hopefully drive stronger adoption in the years to come.

Key USP of Honeywell BESS, your aftermarket, and service-front strategies?

batteryHoneywell is a global leader in the development and deployment of developing and deploying advanced BESS, offering turnkey BESS solutions, advanced controllers and energy management systems. Globally, Honeywell and its partners have delivered more than 1 GWh of BESS solutions to date.

Honeywell offers end-to-end BESS solutions comprising of remote operation centre with key performance outcome guarantees. This helps reduce the total cost of ownership for the customer.

Honeywell consists of a strong aftermarket services team to provide instant support to customers 24×7. With Honeywell’s remote operating centres Honeywell can deliver real-time monitoring, diagnosis, and intervention around the clock, thereby minimizing incident exposure and improving incident response.

honeywell batteryFuture market strategies for BESS?

Experts believe that in due course, with increase in the installed capacity of renewable energy, non-renewable sources of energy will evolve into providing only base load. The former is seen as a sustainable source of energy in the long term. However, its dependency on forces of nature brings its own set of challenges, especially for the grid it feeds into. Therefore, BESS is seen as a reliable and flexible solution to address this issue. BESS also has several applications in ancillary services, generation smoothening, load following, peak power shaving, energy time shifting and emergency back-up etc.

India is witnessing a rapid growth in solar PV installations and wind farms. The growth of electric vehicles too is seen as a positive sign for the increased demand for BESS in the country. The energy storage market is expected to achieve a near term market size of around $160B, reaching $300B by 2030.

Globally, BESS is expected to comprise 50% of the energy storage market. In India, this figure is projected to grow up to 70-75%. Currently, though, the market is still in its nascent phase, with baby steps being taken by companies such as Tata Power Delhi Distribution. In due course, demand will pick up.6

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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