Steadying the grid: why grid forming BESS technology is crucial to future renewable energy supply

Power grids need voltage and frequency stability to operate under normal conditions, so the intermittency and lower inertia of renewable technologies can make them unsuitable as sole power sources. An estimated US$5 trillion of renewable capacity additions to the global grid over the next decade, therefore, will make ensuring grid stability crucial. 

Battery energy storage systems (BESS) can provide highly flexible and responsive grid inertia that can support or replace the conventional synchronous generators of traditional power systems. Global power capacity additions from 2024 to 2034 will be dominated by renewable energy, particularly solar power, which will require BESS support. 

Wood Mackenzie analysts recently explored the outlook for grid forming BESS as the world clamours for ever more power. Fill in the form to receive a complimentary extract from the report. 

Solar’s new best friend 

Unlike traditional grid-following systems, grid-forming BESS technology simulates inertia and actively generates voltage and frequency signals, enhancing grid stability. It effectively compensates for the insufficient inertia in power electronic devices, improving overall grid stability and resilience. 

By Wood Mackenzie estimates, BESS will be the second-largest power capacity addition across Europe, the United States and Asia-Pacific over the coming decade, with new BESS in Asia-Pacific nearly five times that in Europe or the US. By 2034, some 1,500 GW of new BESS installations globally will overtake new wind-power installations. 

Hybrid utility solar combined with BESS is already competing with onshore wind costs globally. We estimate that outside the US, utility BESS will undercut coal and gas power costs by 2040.  

This clearly makes BESS an attractive option. However, the deployment of grid-forming technology will need to accelerate if it is to keep pace with the rollout of renewables. Wood Mackenzie estimates that even if all future BESS technology is grid-forming over the next decade, around 1,400 GW of additional deployments will be needed to ensure grid stability. 

Learn more 

Fill in the form at the top of the page for a complimentary extract from our recent report.