← External Forces: Climate & Resource (all topics)
BESS (battery energy storage systems) for the grid
What it is
Battery Energy Storage Systems installed on the grid to absorb surplus renewable generation and discharge it when demand peaks or output falls, addressing the intermittency that limits how much solar and wind a grid can carry
Support runs through viability gap funding of up to 40% of project capital cost, alongside the ACC manufacturing incentives
Impact on industries
- The demand driver that makes cell manufacturing viable beyond vehicles - grid storage needs are large, growing and independent of the EV adoption curve
- Favours LFP chemistry, where weight is irrelevant and cycle life and safety are decisive, aligning with the cost-competitive end of the manufacturing base
- Economics still depend on viability gap funding, so deployment is policy-paced rather than market-paced
- Domestic cells will not be available at scale for years, so near-term projects import, exposing developers to currency and supply-chain risk