What frameworks guide successful BESS projects?

Experience shows that projects perform best when technical, commercial and delivery decisions are aligned early and treated as interconnected frameworks rather than isolated choices.

The first framework focuses on system need and value. BESS addresses the three key challenges for modern power systems - supporting reliability, enabling decarbonisation and improving market efficiency. It can achieve this by providing different services and use cases such as ancillary services like frequency and voltage control, helping match renewable energy supply with demand and reducing the need for expensive peak generation. While all three benefits are important, focusing on the main goal guides the right technology and delivery strategy.

The second framework relates to duration and battery technology. The potential value a particular battery storage technology can provide to a problem or opportunity is closely linked to the power and energy capacity required. The ratio of these two parameters dictates how long energy can be stored and is defined as the battery’s duration.  Short-duration systems tend to support grid stability and ancillary services. Medium-duration systems shift renewable energy from periods of excess supply to peak demand. Long-duration systems can store energy for several days or even across seasons and are considered for very high renewable penetration grids or systems.

Lithium-ion batteries are widely used for their strong performance, commercial and technical maturity whereas flow batteries and other emerging technologies are considered for projects needing longer duration and are often referred to as Long Duration Energy Storage (LDES).

As a result, matching technologies to the specific use case can be more effective than arbitrarily following technology trends alone.

Delivery strategy is also a critical framework for BESS success and needs to be considered at the same level as technology and revenue models. BESS delivery approaches like most complicated infrastructure projects consider addressing the trade-off between offering more certainty or providing more control. While turnkey EPC models can typically offer higher certainty, they also come with less flexibility and at a higher cost.

Conversely, split contracting and more owner led approaches offer provide greater control over design but require stronger internal capability and present more interface risk. To ensure an optimal approach, it is recommended to consider the delivery strategy from the start of project development and not as an afterthought as decisions around technology, procurement, financing and commercial models are all tied to the delivery approach. Organisations that plan delivery early are better equipped to manage costs, keep stakeholders aligned and scale from single projects to larger portfolios.

The Collie Battery Energy Storage System in Western Australia shows how a well-planned delivery strategy can match project size and transition goals. The project, aimed at replacing coal power and improving reliability, employs an integrated team of client and delivery specialists to handle approvals, design, procurement and construction.

The commercial framework is another defining element. Three broad revenue models are commonly used. Merchant models rely on market volatility, energy arbitrage and ancillary services, offering flexibility but exposing projects to price risk. Contracted models rely on long term agreements, capacity payments or government supported schemes to provide predictable cash flow and support financing.

Hybrid or value-stacking models use several revenue streams from one asset to maximise value but this makes operations and market participation more complex. Commercial decisions influence both investor interest and delivery method, as construction and revenue risks are considered together.

Beyond project level decisions, successful BESS deployment depends on policy, investment and community engagement. Clear and stable policies make it easier to develop projects by reducing uncertainty. Confidence in earning revenue is key to attracting investors. Working with the community is important for getting access to land, handling approvals and building trust, especially when new infrastructure is involved. Engaging early and openly can address concerns about safety, land use and appearance while also showing the local economic and reliability benefits.

The Oneida Energy Storage Project in Ontario, Canada, shows how Indigenous partnerships can turn opposition into cooperation and shared benefits. Led by the Six Nations of the Grand River Development Corporation, it is the largest battery storage facility in Canada.

Looking ahead, several trends are shaping BESS deployment. Hybrid renewable plus storage projects are becoming increasingly more common as shared infrastructure improves economics. Interest in long duration energy storage continues to grow as grid’s storage and renewable penetration increase.

Digital optimisation and advanced control systems are improving performance, extending asset life and supporting more sophisticated revenue strategies.

Taken together, these frameworks show that successful BESS projects are built on alignment. Clear system needs, appropriate technology, well considered delivery strategies and sound commercial structures need to be approached as a whole.