Grid Charging: “Grid charging” refers to the charging of the energy storage system from energy on the power grid (as opposed to a paired energy generation resource, such as wind or solar).
For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.
The US power grid operates on an AC current at 60 Hz. Most renewable generation (wind and solar) and battery energy storage generate direct current, meaning that the flow of electrons is in only one direction. A transformer is required to transform this DC into AC so that it can be transmitted onto the power grid.
Operating Limitations: Energy storage resources may be subject to operational constraints that do not affect traditional generation projects. For example, certain battery technologies will degrade more quickly if the state of charge is not actively managed within a certain range.
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