Electricity keeps our homes lit and warm, runs our hospitals and data centers, airports and the internet. We depend on a constant and reliable supply of energy to run our lives.
With the global transition to renewable energy sources like solar and wind, a key question arises: how can we power our communities when renewable energy is not available? After all, solar power works only when the sun is shining, and wind power depends on weather conditions. What is the solution when renewable energy supply is too low to meet demand, or when too much electricity is produced and cannot be used immediately?
In this blog, we will explore Battery Energy Storage Systems (BESS) technologies and how they are ensuring the shift to renewable energy stays reliable, efficient, and available whenever it is needed.
What is a Battery Energy Storage System (BESS)?
A Battery Energy Storage System is a technology that captures excess electricity when supply is high and stores it in batteries for later use. BESS is an advanced system composed of multiple interconnected parts designed to manage large amounts of electricity safely and efficiently.
Core components of BESS
- Batteries. The central component where energy is stored in chemical form.
- Inverters and Converters. These devices transform electricity from direct current (DC), which batteries use, to alternating current (AC), which is used in homes, businesses, and the grid.
- Battery Management System (BMS). A sophisticated control system that monitors battery charge levels, temperature, and performance to keep the system safe and efficient.
- Cooling and Safety Systems. Ensure that batteries do not overheat and reduce risks of fire or failure.
- Energy Management System (EMS). A digital control layer that decides when the system should charge, store, or discharge electricity, depending on grid conditions and demand.
Types of battery technologies & their trade-offs
Different battery technologies are used in BESS projects, each with its own advantages and limitations.
| Battery Type | Strengths | Limitations | Best Use Cases |
| Lithium-ion | High efficiency, compact size, fast response, mature supply chain | Degrades over time, can overheat (thermal runaway), relatively costly | Grid-scale storage, electric vehicles, quick response |
| Lithium Iron Phosphate (LFP) | Safer chemistry, long lifespan, lower cost per cycle | Lower energy density, larger space requirements | Large-scale renewable integration, stationary storage |
| Flow Batteries | Long-duration storage (hours–days), scalable, deep cycling without damage | Lower efficiency, more expensive, less mature technology | Utility-scale storage, renewable smoothing |
| Lead-acid | Low upfront cost, well-known and reliable | Heavy, short lifespan, low depth of discharge | Backup power, small-scale or legacy systems |
| Sodium-ion (emerging) | Abundant raw materials, potentially cheaper and safer than lithium | Still in research and pilot stages | Future grid storage, sustainable mass adoption |
| Solid-state (emerging) | Very high energy density, improved safety, long lifespan | Expensive, not yet commercialised | Next-generation batteries for EVs and advanced grids |
How does BESS work?
The operation of a Battery Energy Storage System can be explained in three simple steps:
- Charging: When renewable sources such as solar or wind produce more energy than needed, the system stores the excess electricity in batteries.
- Storing: The energy is kept inside the batteries in chemical form until required.
- Discharging: During times of high demand or when renewables are not generating, the system releases stored energy back into the grid.
This forms the basis of a cycle which smooths out the ups and downs of renewable energy, making the entire system more reliable and efficient.
Real-world examples of BESS in action
If you stumbled upon this article by chance, ready to understand more about this new technology – you may be surprised to hear that Battery Energy Storage Systems are already operating at scale across the world. There are many regions globally which have established BESS locations and are actively harnessing renewable energy.
- Hornsdale Power Reserve, South Australia: Often called the “Tesla Big Battery,” this project has a capacity of 150 MW/193 MWh. It has proven its ability to stabilise the grid, prevent blackouts, and save millions of dollars by reducing reliance on fossil fuel backup plants.
- Moss Landing Energy Storage Facility, California, USA: One of the largest in the world, with over 3,000 MWh of storage. It plays a critical role in balancing California’s solar-heavy grid and supporting peak demand during hot summers.
- Pillswood BESS, United Kingdom: With a capacity of 196 MWh, this project is directly linked to the UK’s offshore wind farms, storing excess wind power for later use and ensuring grid stability.
- Gateway Energy Storage, San Diego, USA: A 250 MW/250 MWh system that was the largest in the world at the time of commissioning in 2020. It supports California’s renewable integration goals.
- Manatee Energy Storage Centre, Florida, USA: Developed by Florida Power & Light, this is the world’s largest solar-powered battery at 409 MW/900 MWh, pairing directly with a solar farm to store energy during the day for use at night.
Applications of BESS
Battery Energy Storage Systems are highly flexible and can be used in many ways across the energy sector.
Grid stability: BESS helps balance sudden changes in electricity supply and demand. It can respond within milliseconds, preventing fluctuations and maintaining a stable grid.
Backup power for critical services: Hospitals, airports, and data centers require continuous power. BESS provides reliable backup during outages, ensuring critical services continue without interruption.
Microgrids and remote communities: In areas far from central power grids, BESS paired with solar or wind power can create self-sufficient microgrids, especially valuable in remote villages and islands.
Electric vehicles: With the growth of electric vehicles, charging stations can put pressure on the grid. BESS helps by storing energy and supplying it when multiple vehicles charge at the same time.
Renewable energy integration: BESS makes it possible to use renewable energy more effectively. By storing excess solar power generated at midday, it ensures energy is available when demand peaks in the evening.
Benefits of BESS
Reliability: Reduces blackouts and keeps electricity flowing smoothly.
Efficiency: Stores cheap or excess electricity and supplies it later when demand is high.
Sustainability: Enables the use of renewable energy on a much larger scale.
Resilience: Provides backup during emergencies, making power systems stronger.
Cost-effectiveness: Reduces reliance on expensive backup fossil fuel plants.
Less waste: Prevents renewable energy from being wasted when it cannot be immediately used.
Challenges and risks of BESS in Australia’s energy transition
Australia is at the forefront of renewable energy adoption, with some of the world’s highest levels of rooftop solar and large-scale solar and wind farms. This rapid shift brings with it a strong reliance on Battery Energy Storage Systems (BESS). While BESS offers solutions to intermittency and grid stability, it also presents new challenges and risks that policymakers, regulators, and industry leaders must navigate.
Grid Integration and Stability
Australia’s grid was not originally designed for large volumes of distributed renewable energy. As more BESS projects come online, there is growing complexity in managing how batteries interact with the wider grid. Poorly integrated systems could lead to frequency imbalances, congestion, or even localised blackouts if not carefully managed.
Fire and Safety Risks
Lithium-ion batteries, the dominant technology in BESS today, carry inherent risks of thermal runaway and fire. Australia has already experienced high-profile BESS incidents, such as the 2021 fire at the Victorian Big Battery. While safety systems are improving, the risk of accidents remains a major concern for public perception and investor confidence.
Supply Chain Dependence
Australia’s clean energy boom is heavily dependent on global supply chains for critical minerals and components. Ironically, while Australia is one of the world’s largest exporters of lithium, most battery cells are manufactured overseas. This dependence exposes the sector to geopolitical risks, price volatility, and bottlenecks in global manufacturing capacity.
Regulatory and Policy Gaps
BESS is still a relatively new sector, and Australian regulations are catching up. Current frameworks do not always clearly define how batteries should be classified (generation, transmission, or consumer asset), which affects investment certainty and market participation. Without cohesive national standards, projects may face delays, inconsistent permitting, and integration challenges.
Recycling and End-of-Life Management
Australia is projected to see tens of thousands of tons of battery waste in coming decades. Without robust recycling infrastructure, BESS could create an environmental liability, undermining the sustainability goals it was meant to support. Developing domestic battery recycling and second-life use pathways is essential to mitigate this risk.
Cyber Security and Digital Vulnerabilities
As BESS projects become digitally integrated with the grid, they create new and expanding attack surfaces. Dragos’s 2026 OT/ICS Year in Review found over 100 internet-exposed BESS devices with critical vulnerabilities, including inverters supplying power directly to electric utilities.
In 2025, VOLTZITE, the threat group linked to China’s Volt Typhoon, moved quietly through engineering workstations in the US electric and water utilities sectors, extracting configuration files and alarm data, methodically mapping what operational conditions would trigger process shutdowns. Not disrupting anything, just learning exactly how to when the time comes. The same approach could be replicated across BESS infrastructure.
Cloud-connected monitoring platforms, vendor remote access, and IoT-enabled sensors extend the OT perimeter far beyond the physical site. Every external connection, a firmware update, a vendor support session, a cloud dashboard, is a potential entry point. A coordinated attack on grid-connected batteries could destabilise entire regions.
Australia’s AESCSF provides a strong baseline, but greater tailoring to BESS-specific risks is needed. Operators should also reference AEMO’s Engineering Roadmap for priority actions on secure grid integration.
Social License and Community Trust
Large-scale renewable and storage projects often face local opposition, especially when communities feel excluded from decision-making. Concerns around land use, fire risks, and visual impact can delay projects and reduce public trust. Building a strong social license through transparency and community engagement will be critical for Australia’s transition.
BESS through the OT security lens
We can’t talk about BESS without discussing operational technology security concerns and how BESS fits in amongst the wider ecosystem of critical infrastructure cyber security and evolving government legislation.
Why BESS Matters for OT Security
A new class of critical asset
BESS directly integrates with SCADA systems, Energy Management Systems (EMS), and grid operations. Decisions made within a BESS (e.g. charging or discharging during peak load) can instantly affect frequency stability, load balancing, and even black-start capabilities. For OT security teams, this places BESS on the same level of criticality as substations or control centers.
Blurring of safety and cyber domains
Unlike most OT assets, compromised batteries present immediate safety hazards as well as operational disruption. A manipulated Battery Management System (BMS) could disable cooling, suppress alarms, or alter charge limits, increasing the risk of fires or equipment damage. This additional risk forces OT security to collaborate closely with safety engineering.
An expanded attack surface
Many modern BESS installations rely on cloud-connected monitoring platforms, vendor remote access, and IoT-enabled sensors. This extends the OT perimeter far beyond the site itself, creating dependencies on external contractors, cloud service providers, and global supply chains whereby each connection becomes a potential entry point for attackers.
Regulatory and compliance shifts
As BESS scales, regulators are increasingly classifying large storage projects as critical infrastructure. In Australia, the Security of Critical Infrastructure (SOCI) Act places obligations on operators of grid-scale BESS, requiring incident reporting, resilience planning, and cyber governance.
BESS Architecture and OT Security Considerations
Understanding the architecture of a BESS is fundamental to securing it. Each layer of the system introduces distinct OT security challenges:
Battery Packs and Cells: The physical energy storage layer. While not directly networked, they are controlled by the BMS, making the security of that control system critical.
Battery Management System (BMS): Controls cell voltage, current, and temperature. A compromised BMS can push batteries into dangerous operating conditions, potentially causing thermal runaway.
Power Conversion System (PCS) / Inverters: Converts DC to AC power. Manipulation of inverter settings can affect power quality and grid stability.
SCADA and Energy Management System (EMS): The monitoring and control layer. This is the most exposed OT surface, typically connected to corporate IT networks, grid operators, and vendor systems.
Grid Connection (Transformers and Substation): The interface between the BESS and the wider grid. Disruption here can affect grid stability across entire regions.
The Cyber Threat Landscape for BESS
BESS faces a diverse and evolving threat environment arising from the combination of operational technology, IT systems, and supply chain dependencies:
1. Remote Vendor Access and Connectivity Risks: Many BESS vendors maintain remote connections to monitor performance, apply firmware updates, or adjust operational settings. If access is not strictly controlled and monitored, malicious actors could compromise the system or gain access to sensitive operational data.
2. Supply Chain Vulnerabilities: BESS rely on firmware, communication modules, and cloud platforms often sourced from offshore suppliers. Foreign ownership, offshoring of data, and outsourced maintenance introduce hidden vulnerabilities that can be exploited for espionage, sabotage, or foreign interference.
3. Cyber Threats to System Safety: Cyberattacks against BESS can have direct physical consequences. Attackers may alter BMS settings, suppress alarms, or manipulate configuration parameters – compromising battery safety, disrupting energy delivery, or destabilising the grid.
4. Physical Security and Natural Hazards: BESS installations face significant physical risks including sabotage, forced shutdowns, and natural disasters. Many large-scale systems are located in remote regions with limited on-site response capabilities.
5. Combined and Strategic Risks: The combination of remote access, supply chain exposure, cyber–physical vulnerabilities, and natural hazards creates a complex threat landscape that is amplified by geopolitical factors and foreign investment.
The Future of BESS
The outlook for BESS is full of promise, with several major trends shaping its future:
Longer-duration storage: Moving beyond hours to systems that can store electricity for days or even weeks.
Artificial intelligence integration: AI is being used to forecast demand, optimise storage, and reduce costs by automating charge/discharge cycles.
Second-life batteries: Old electric vehicle batteries can be repurposed for stationary energy storage, extending their useful life.
New battery chemistries: Sodium-ion and solid-state batteries may lower costs, improve safety, and reduce reliance on rare materials.
Mega-projects: Gigantic battery installations capable of powering entire cities are already being developed.
Decentralised systems: As costs decline, BESS may be installed in individual homes and businesses, creating a distributed energy web where communities share power locally.
According to the International Energy Agency, global installed storage capacity needs to increase six-fold by 2030 to support the clean energy transition.
Conclusion and Recommendations
Battery Energy Storage Systems (BESS) are now a cornerstone of the global energy transition. They smooth renewable variability, strengthen grid stability, and reduce reliance on fossil fuels. Yet, as this blog has shown, their integration also introduces new technical, regulatory, and cyber-physical risks. Addressing these challenges requires coordinated action across industry, government, and technology providers.
Build security and safety into design: BESS should be treated as critical OT assets from the outset. Safety interlocks, secure firmware, and segmented network design must be embedded into project planning and engineering.
Strengthen regulatory frameworks: Governments should accelerate the development of clear and harmonised standards for large-scale storage. In Australia, alignment with the SOCI Act is a start, but consistent guidelines for safety, cybersecurity, and recycling will help provide certainty for investors and operators.
Invest in cyber-physical resilience: Operators must adopt a cyber-informed engineering approach, combining anomaly detection, signed firmware, secure remote access, and strong vendor accountability.
Develop domestic supply chains and recycling capacity: Australia and other regions should leverage their mineral wealth by building local manufacturing and recycling infrastructure.
Prioritise community engagement: Public trust is essential. Communities hosting BESS projects need transparent communication about fire safety, land use, and long-term benefits.
Recognise BESS as a strategic OT frontier: For OT security professionals, BESS is not peripheral. It exists now as a strategic control point in modern power systems. Organisations should integrate BESS into existing OT monitoring, governance, and incident response frameworks.
Is your BESS or energy infrastructure cyber secure? Speak to the Secolve team, Australia’s specialist OT security experts, about protecting your critical energy assets. [email protected] | 1800 732 658 | secolve.com