How battery energy storage systems are solving the grid’s biggest problem

Jun 13, 2025

June 12, 2025 by Sam Francis

It’s a common misconception that the electricity grid operates like a vast reservoir of power, storing energy and delivering it on demand. The reality is a far more precarious balancing act.

The grid is a real-time network where electricity generation must constantly match consumption. This system has served us for a century, but its lack of storage capacity is a critical vulnerability, especially as we transition to intermittent renewable energy sources.

This is where a new generation of technology comes in: Battery Energy Storage Systems (BESS). These are not merely scaled-up versions of consumer batteries; they are sophisticated, utility-scale power assets designed to address the grid’s core challenges.

For engineers, they represent a new frontier in power management. For investors, they are a rapidly growing market with significant commercial potential.

So, what exactly do these large-scale batteries do? Their applications are diverse and address some of the most pressing issues in the energy sector:

The BESS market is a hotbed of innovation, with established industrial giants and nimble startups alike vying for a piece of the action.

ABB, a global leader in automation and electrification, has recently launched its “BESS-as-a-Service” model. This lowers the barrier to entry for industrial clients, allowing them to benefit from energy storage without the upfront capital expenditure. This is a significant development for the commercial and industrial sectors, making energy resilience and cost savings more accessible.

Meanwhile, companies like Vattenfall are demonstrating the power of BESS at the grid level. Their 50-megawatt battery park is a prime example of how these facilities can be optimized to provide a strong return on investment by participating in energy markets and providing grid services.

The innovation extends to the battery technology itself. While many systems use lithium-ion chemistries, the focus is on longevity and safety, often using chemistries like Lithium Iron Phosphate (LFP).

Furthermore, companies like Voltfang are pioneering the use of “second-life” batteries from electric vehicles. They recently secured €15 million in funding to build Europe’s largest second-life battery factory, a testament to the economic and environmental advantages of this circular economy approach.

For investors, the BESS market represents a compelling opportunity. The global energy storage market is projected to grow exponentially in the coming years, driven by the decarbonization of the global economy and the increasing need for grid resilience.

The commercial value of BESS is not just in the hardware but in the sophisticated software and control systems that manage the battery’s operation.

Companies that can provide a complete, integrated solution that optimizes battery performance and maximizes revenue streams will be well-positioned for success.

Creating a definitive “top 10” list can be complex as it depends on the specific metric used (for example, market share, deployed MWh, system integration vs. battery manufacturing).

However, based on market presence, integration capability, and technology leadership, the following companies are consistently recognised as major players in the global BESS market.

The global BESS market is experiencing explosive growth. Here are some key statistics and projections from various market research and energy analysis firms:

While a single BESS cannot power an entire country, a network of these systems is an essential component of a modern, resilient, and decarbonized energy grid.

They are the missing link that will enable us to unlock the full potential of renewable energy and create a more stable and secure power supply for generations to come.

For the engineers and investors at the forefront of this transformation, the future is charged with opportunity.

Filed Under: Energy, Features Tagged With: battery energy storage, bess, electricity grid, energy storage, energy transition, fluence, grid-scale storage, renewable energy, Schneider Electric, tesla