ABB: How AI & BESS-as-a-Service can Expand Battery Use

Global demand for electricity is accelerating, fuelled by the proliferation of electrification initiatives and digital technologies across sectors.

The International Energy Agency (IEA) projects that electricity consumption from data centres alone will more than double worldwide, reaching 945 TWh by 2030.

In the United States, the IEA predicts total electricity demand will increase by approximately 25% between 2023 and 2030.

Battery energy storage systems (BESS) offer a solution by shifting surplus solar and wind energy to periods of higher power demand, enabling operators to meet peak requirements without resorting to fossil fuel generators.

According to the IEA, both utility-scale and behind-the-meter batteries have experienced strong growth, with around 42 GW added in 2023 alone.

Despite this progress, high upfront costs and infrastructure requirements have prevented many organisations from accessing BESS technology.

Addressing electricity challenges

A whitepaper from ABB, developed in partnership with GridBeyond, examines how BESS-as-a-Service could enable businesses to overcome electricity challenges.

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."

As systems decarbonise, variable renewables create timing gaps between when energy is generated and when it is required.

Without storage, this excess energy is curtailed.

On-site storage can reduce grid reliance, flatten demand peaks and increase use of self-generated solar.

Typical commercial and industrial BESS units range from 500 kW to 20 MW and can occupy roughly four parking spaces, making deployment feasible even on constrained sites.

Batteries can also complement heat pumps and electric vehicle charging, shifting solar from midday to evening operations.

What BESS-as-a-Service brings

Rather than purchasing and operating a system, BESS-as-a-Service customers pay a predictable operational expenditure fee for a behind-the-meter battery that ABB designs, installs and manages over a 10 to 20-year term.

Performance, availability, maintenance and replacement remain ABB's responsibility, whilst optimisation and market participation are handled on the customer's behalf.

“Our new managed BESS-as-a-Service is the first of a range of ABB service-based models that will allow businesses to adopt advanced energy solutions without the financial strain of large initial investments,” Stuart explains. 

“Battery storage technologies are a key enabler of the energy transition, and 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.” 

Artificial intelligence integration

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

“AI technology has become essential in forecasting energy availability, market prices and optimising asset utilisation. 

“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.”

AI, Michael explains, can also help to forecast market prices, helping to optimise asset use and maximise revenue generated. 

“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,” he says.