Bridging the Future: The Critical Role of BESS and PHES in Renewable Energy storage

In an era where the transition to renewable energy is crucial, the conversation around energy storage solutions is gaining momentum.

At a recent Solar Citizens rally in Dixon, Australia, a stimulating discussion unfolded with Mike Westerman from GHD, an expert in hydropower.

The dialogue revolved around the coexistence and cooperation of Big Batteries (BESS) and Pumped Hydro Energy Storage (PHES), two pivotal components in the renewable energy sector.

GHD, a global company named after its founding engineers, is dedicated to sustainable solutions in water and energy.

Westerman, leading GHD’s hydropower initiatives, has been instrumental in developing PHES projects not only in Australia but also internationally across Scotland, North America, and the Middle East.

His deep-seated expertise in hydro engineering and contract administration positions him as a credible voice in the conversation about the future of energy storage.

Westerman argues that both BESS and PHES are essential for a sustainable energy grid.

He predicts a surge in BESS usage over the next few years, partially driven by the slower growth in electric vehicle (EV) sales.

This prediction is rooted in the challenge of converting the global internal combustion engine fleet to electric within a mere 30 years—a task far exceeding current battery production capacity.

Consequently, EV manufacturers are aggressively discounting, creating a favorable climate for BESS developers.

However, this burgeoning demand raises concerns about the sustainability of battery pricing and recycling.

The nascent state of the battery recycling industry poses significant challenges, especially with instances of fires in BESS installations due to inadequate early fire safety measures.

Insurers have responded by tightening standards, and future recycling plants might face similar scrutiny until robust fire protection protocols are established.

The unique advantages of PHES, particularly in Australia, were highlighted as a crucial complement to BESS.

Westerman explained the technical synergy between the two: BESS is a digital system, relying on inverters to manage energy flow, while PHES operates on an analogue principle, leveraging gravitational forces to store and release energy.

This fundamental difference allows PHES to provide stability and durability in the energy grid, akin to steadfast players supporting agile teammates in a sports team.

PHES excels in frequency stability, capable of responding instantly to grid fluctuations without the need for complex calculations.

Its strength lies in its ability to endure prolonged stress, offering a buffer that allows protective network devices to address issues effectively.

This robust nature, combined with minimal degradation over long life cycles, positions PHES as a reliable partner to BESS, particularly in maintaining network stability.

However, the development of PHES is not without its challenges.

The upfront capital expenditure is higher compared to BESS, and the risks and uncertainties associated with large projects can be daunting.

Westerman suggests that governments could play a crucial role by providing insurance for these risks, thus facilitating project viability.

Such initiatives would allow the government to invest in the future while ensuring that private investors are held accountable for realistic cost estimates.

Real-world examples underscore the potential of PHES.

The Kidston project in North Queensland, for instance, is a pioneering effort to repurpose a mine into a pumped hydro facility.

Set to be operational by mid-next year, it exemplifies how innovative approaches can lead to significant advancements in energy storage.

Similarly, the Phoenix project in New South Wales highlights the role of government support in securing financial viability for large-scale PHES undertakings.

The conversation with Westerman also touched on the broader implications of transitioning to a renewable energy future.

The political landscape in Australia, marked by the defeat of conservative leader Peter Dutton in Dixon, reflects a public shift towards cleaner, solar-powered alternatives.

This change underscores the growing recognition of the need for sustainable energy solutions and the pivotal role that both BESS and PHES play in achieving that vision.

In this evolving energy landscape, the collaboration between digital and analogue systems like BESS and PHES represents a harmonious blend of innovation and tradition.

As the world grapples with the challenges of climate change, the insights shared by experts like Mike Westerman offer a roadmap for integrating diverse energy storage solutions, ultimately paving the way for a more resilient and sustainable future.