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Battery Energy Storage Systems Report

Battery energy storage systems (BESS) are a critical component of grid reliability and resilience today, providing rapid response capabilities while enabling grid modernization and capacity expansion across the United States. As utilities, communities, and customers prepare to deploy significant BESS capacity over the next several years, the United States has an opportunity to build security into battery system design and deployments. This report provides a framework for assessing the current dominance of foreign-manufactured components in the supply chains for BESS, inverter-based resources, and transformers. It offers high-impact, actionable solutions to service partners, industry, and government to address supply chain risks for currently installed, in design, and future deployments.

24 - POWER TRANSMISSION AND DISTRIBUTION

Flow dynamics and heat transfer in simplified battery energy storage systems with heated battery modules

Large-scale energy storage systems (ESSs) composed of batteries show promise in addressing current energy challenges, but dissipation of generated heat is important. Here, this paper focuses on buoyant convective flows in simplified ESS battery racks. Natural convection is not generally the primary cooling strategy but can be important in abnormal scenarios where there is module overheat or potentially thermal runaway. We use computational fluid dynamics to investigate the flow dynamics and heat transfer mechanisms in a simplified parameterized rack design. Despite its simplicity, this configuration produces many of the relevant features expected in real ESSs without details of module geometry or hardware, allowing broad conclusions independent of manufacture-specific designs. We start by providing visualizations of the flowfield and measurements of entrainment, heat flux, and pressure. To characterize the dependence on the system parameters, we develop an integral-scale analysis of the average temperature equation to highlight the dominant source terms. We use results from this analysis to derive a steady network model composed of simple algebraic expressions to provide first-order predictions of entrainment through the rack. The network model leads to a linear scaling of the Reynolds number based on convective mass flux with respect to the Grashof number based on the heat source. We deduce empirical relationships that relate the heat exchanged between modules using a surface-averaged Nusselt number as a function of the local Reynolds and Rayleigh numbers. Lastly, we investigate how space between the modules and rack in the spanwise direction creates flow bypass, resulting in different flow pathways.

Battery thermal management

Economic Analysis of Battery Energy Storage Systems Incorporating Uncertain Battery Model

A high-fidelity battery model is essential for precise economic analysis of battery energy storage systems (BESSs), but these models are computationally intensive. Heuristic models offer computational efficiency but compromise the accuracy of economic analysis results. We assess the impact of errors in heuristic battery models on economic analysis by utilizing open-circuit voltage (OCV) measurements from battery experiments.

Choi, Hyungjin [Sandia National Laboratories (SNL-

Africa Battery Energy Storage Systems (BESS) Capacity Building Li-Ion Battery Degradation and Performance [Slides]

This presentation is intended for power system engineers, operators, and planners who work on isolated power systems that have (or may soon have) high levels of power generation coming from wind turbines, solar farms, and battery energy storage, which are collectively referred to as inverter-based resources. It describes the basics of lithium-ion battery energy storage systems and lithium-ion battery degradation. Battery degradation at the cell-level is explained, and then the structure and degradation of battery energy storage systems is also explained. This is intended to help power system engineers, operators, and planners to understand and effectively utilize battery energy storage systems.

24 POWER TRANSMISSION AND DISTRIBUTION

Optimal Power Management for Large-Scale Battery Energy Storage Systems via Bayesian Inference

Large-scale battery energy storage systems (BESS) have found ever-increasing use across industry and society to accelerate clean energy transition and improve energy supply reliability and resilience. However, their optimal power management poses significant challenges: the underlying high-dimensional nonlinear nonconvex optimization lacks computational tractability in real-world implementation, and the uncertainty of the exogenous power demand makes exact optimization difficult. This paper presents a new solution framework to address these bottlenecks. The solution pivots on introducing power-sharing ratios to specify each cell’s power quota from the output power demand. To find the optimal power-sharing ratios, we formulate a nonlinear model predictive control (NMPC) problem to achieve power-loss-minimizing BESS operation while complying with safety, cell balancing, and power supply-demand constraints. We then propose a parameterized control policy for the power-sharing ratios, which utilizes only three parameters, to reduce the computational demand in solving the NMPC problem. This policy parameterization allows us to translate the NMPC problem into a Bayesian inference problem for the sake of 1) computational tractability, and 2) overcoming the nonconvexity of the optimization problem. We leverage the ensemble Kalman inversion technique to solve the parameter estimation problem. Concurrently, a low-level control loop is developed to seamlessly integrate our proposed approach with the BESS to ensure practical implementation. This low-level controller receives the optimal power-sharing ratios, generates output power references for the cells, and maintains a balance between power supply and demand despite uncertainty in output power. We conduct extensive simulations and experiments on a 20-cell prototype to validate the proposed approach.

Battery energy storage systems (BESSs)

Resilient and Cost-Effective Hybrid Li-Ion Battery Energy Storage System for Sites with Solar Generation and Electric Vehicle (EV) Charging (CRADA Final Report, CRD-19-00799)

The batteries of an energy storage system designed for multiple use-cases are traditionally selected to withstand the highest rate at which a battery is discharged relative to its maximum capacity (C-rate) and cycling requirements of the most intense use-case. However, this is not cost-effective given that the price of the batteries is strongly correlated to C-rate and cyclability. We propose to establish design guidelines for a hybrid energy storage system and test an edge controller that uses high-power and high-energy batteries for high- cyclability use cases such as frequency regulation and electric vehicle (EV) charging and low-cost batteries for low-power and low-cyclability use cases such as summer peak loads. The three main objectives of this proposal are (i) establishing sizing guidelines for such a hybrid storage system, (ii) installing a hybrid storage system in the Energy Systems Integration Facility (ESIF) sized based on those guidelines, and (iii) testing an edge controller specific for the system through hardware tests.

14 SOLAR ENERGY

West Africa Battery Energy Storage Systems (BESS) Capacity Building - Discussion of BESS Tariffs: Payment Structures and Case Studies [Slides]

Battery Energy Storage Systems (BESS) are emerging as critical assets for enhancing grid reliability, integrating renewable energy, and enabling system flexibility. Yet, the regulatory and financial frameworks that determine how BESS projects are compensated vary widely across jurisdictions. This presentation explores international case studies - from Honduras, Costa Rica, Chile, South Africa, Mexico, and Brazil - to illustrate how tariff design and payment structures are evolving to support large-scale BESS deployment. The cases highlight a range of ownership and revenue models, including cost-of-service mechanisms, energy and capacity payments, and market-based arbitrage, as well as hybrid approaches under development. The discussion will examine key challenges such as defining remuneration for ancillary services, addressing double charging, and accounting for efficiency losses and degradation over time. By comparing experiences across markets, the presentation identifies emerging best practices for valuing BESS and designing tariffs that align technical performance with economic incentives, providing insights for regulators, utilities, and policymakers pursuing storage integration.

25 ENERGY STORAGE

Optimal sizing of battery energy storage systems for peak shaving and demand response using a degradation-aware Bayesian Optimization-Mixed-Integer Linear Programming framework

The increasing integration of renewable energy and rising electricity demand highlight the importance of battery energy storage systems for peak shaving and demand response. Unlike prior approaches that overlook operational impacts on degradation, this study proposes a Bayesian Optimization–Mixed Integer Linear Programming framework for optimal battery energy storage system sizing. In this framework, Mixed Integer Linear Programming determines short-term scheduling while a calibrated electrochemical model iteratively evaluates degradation. The central hypothesis is that the framework can efficiently identify optimal sizes that yield realistic and economically robust outcomes. The method is tested across three scenarios: peak shaving, peak shaving with energy-reduction demand response, and peak shaving with power-reduction demand response. Results show that the framework converge to the optimum within 20 iterations out of 150 possible sizes. Under baseline conditions, the framework consistently selects the smallest feasible system, minimizing unnecessary degradation costs from oversized storage. Sensitivity analyses reveal that larger systems are favored as demand rates or incentives increase. Comparisons of demand response programs indicate that power-reduction demand response offers greater economic benefits than energy-reduction demand response, although demand savings from peak shaving remain the dominant contributor to overall performance. This study demonstrates that the proposed framework balances computational tractability with degradation fidelity, identifies critical economic thresholds for investment, and offers a practical, flexible tool to guide industrial stakeholders in cost-effective battery energy storage system deployment.

Batteries

Hierarchical Control of Distributed Battery Energy Storage Systems in a DC Microgrid

Contents - NASA Future Power Systems - DC Microgrid with Distributed Battery Energy Storage - A simplified gateway power system - Droop Control (Primary Control) - Distributed battery units, droop control, and load sharing characteristics - Simulation results - Three-Level Hierarchical Control of Distributed Battery Units During Eclipse - Secondary Control - Objective and definition of unit control error - Implementation of secondary control - Simulation results - Tertiary Control - Schedule BU current sharing with the objective of equal SoC - Simulation results•Conclusions

Jing Zhang

Africa Battery Energy Storage Systems (BESS) Capacity Building Utility-Scale Storage: BESS Valuation, Tariffs, and Remuneration [Slides]

Utility-scale Battery Energy Storage Systems (BESS) are key to enhancing grid reliability, integrating renewable energy, and providing operational flexibility. Designing effective valuation, remuneration, and tariff frameworks is essential to ensure both system benefits and financial viability for developers. This presentation outlines a structured methodology for evaluating BESS projects, covering policy and legal considerations, cost and revenue analysis, benchmarking, financial sensitivity, and risk assessment, while ensuring alignment with public interest. It also explores valuation of multiple storage services - bulk energy, ancillary services, and infrastructure support - and monetization strategies through capacity payments, energy tariffs, tolling, arbitrage, and non-wires alternative payments. Technical factors, including round-trip efficiency, degradation, and storage duration, are integrated into financial and operational modeling to quantify both system-wide and project-level benefits. Through case studies and simulation-based approaches, this framework provides regulators, utilities, and developers with practical guidance for tariff design, payment structures, and investment decisions, maximizing the economic and societal value of BESS deployment.

25 ENERGY STORAGE

Battery Energy Storage System (BESS) Licensing and Permitting [Slides]

This presentation provides an overview of the licensing, permitting, and regulatory frameworks governing Battery Energy Storage Systems (BESS) across multiple international contexts. It outlines foundational permitting considerations - including safety standards, siting requirements, regulatory and environmental obligations, and interconnection processes - alongside typical pathways for installation, approval, and inspection. The presentation summarizes key technical standards such as NFPA 855 and IEEE guidelines, and emphasizes best practices for safe and effective deployment. A series of detailed case studies from South Africa, Chile, Mexico, Brazil, Costa Rica, Honduras, and the Dominican Republic illustrates how different countries structure approval authority, evaluate environmental impacts, and integrate BESS into national grid systems. The deck concludes with insights on emerging challenges, including evolving regulatory frameworks, financial viability, and the need for pricing mechanisms that accurately value storage services.

24 POWER TRANSMISSION AND DISTRIBUTION

Hierarchical Control of Distributed Battery Energy Storage System in a DC Microgrid

This paper presents a novel hierarchical control approach of a DC microgrid (DCMG) which is supplied by a distributed battery energy storage system (BESS). With this approach, all battery units distributed in the BESS can be controlled to discharge with accurate current sharing and state-of-charge (SoC) balancing. Similar to other hierarchical control approaches used in DCMGs, this approach consists of three levels: (1) primary control, (2) secondary control and (3) tertiary control. This work includes defining a unit control error (UCE) at the secondary control level and evaluating current sharing weights at tertiary control level. A centralized controller at secondary control level is designed to detect the UCEs of each battery unit, and to restore the average voltage of a DCMG and control battery current sharing simultaneously. The distributed battery units share the load current in a DCMG based on weights. These weights are evaluated at the tertiary control level based on battery SoCs. The approach’s effectiveness was confirmed in digital simulation tests with the same simulation model as used in the NASA AMPS Modular Hardware Emulator.

Jing Zhang

Battery Energy Storage System (BESS) End-of-Performance and Decommissioning Considerations [Slides]

This presentation provides a comprehensive overview of end-of-performance and decommissioning considerations for large-scale Battery Energy Storage Systems (BESS). It outlines expected system lifespans, midterm assessment needs, and pathways for extending operational life through augmentation or repowering. The presentation details regulatory requirements that govern decommissioning plans, cost estimates, financial assurance mechanisms, and performance obligations across multiple jurisdictions. It further examines end-of-life equipment management, including recycling, waste handling, transportation, and environmental compliance. Designed to support Malawi's electricity-sector institutions, the presentation highlights how planning for decommissioning and environmental stewardship can be integrated early in project development to ensure safe, financially accountable, and environmentally responsible BESS system retirement.

24 POWER TRANSMISSION AND DISTRIBUTION

Real-time Simulation Model of a Vanadium Redox Flow Battery Energy Storage System with Power Electronics Integration

This paper presents a real-time (RT) model of a 20 kW multi-stack vanadium redox flow battery (VRFB) system including power electronics converters in a single real-time framework. Implemented on a Typhoon HIL 604 device, this model is designed to simulate the operation of the flow battery with system-level controls. To provide a realistic overview of a VRFB system, the model incorporates a closed-loop control system for managing the speeds of two centrifugal pumps and an electro-thermal model of the battery stacks, enabling realtime temperature estimation. Furthermore, a two-stage power electronics topology and associated control solution are presented, operating with distinct strategies for interfacing the battery model with the main grid and a local load. Results from simulations demonstrate that the VRFB model is well suited for RT environment, and system can manage power during both charging and discharging cycles, while a SCADA monitor is used to display critical variables for safe, efficient, and reliable operation of the VRFB systems.

Rezende Da Costa Reis Kimpara, Renata [ORNL] (ORCI

Methods and recommendations for large-scale deflagration testing of battery energy storage system enclosures

UL Solutions produced this report as a summary of a test series executed at Sandia National Laboratories that they funded. This report was approved for release by UL Solutions in October 2025 and released in 2026 on their website at https://www.ul.com/insights/methods-and-recommendations-large-scale-deflagration-testing-battery-energy-storage-system.

Gaudet, Benjamin [UL Solutions] (ORCID:00090006419