Battery Energy Storage Glossary

If you are just getting started with battery energy storage, you might have a problem with all those new words. We have put together a complete list of energy storage system terminology.


Ancillary services


The electrical grid within the EU is connected & operated with a frequency of 50Hz,which must be maintained with just small deviations. Deviations in frequency are caused by an imbalance between consumption and production at a given time. To ensure a stable grid, transmission system operators (TSO) must purchase ancillary services in the form of devices that can ensure a change in this frequency by adjusting their production or consumption of electricity = providing flexibility.


Because these are services where high reliability, speed of response, and high performance are required, BESS is an important source of the required flexibility. BESS can independently provide primary regulation (FCR, ramp-up time up to 3s).In combination with other sources, help with secondary regulation (aFRR, rise time up to 5 min). With BESS, even devices that would not be able to provide these services on their own can be used.



BESS, short for Battery Energy Storage System, is a technology for storing electrical energy in batteries, enabling the balancing of supply and demand in the electrical grid. These systems are crucial for integrating renewable energy sources such as solar and wind, thus enhancing grid efficiency and stability.

Battery Storage

Battery storage refers to systems that store energy in chemical form inside batteries for later use. These systems are essential for managing energy supply, allowing for the storage of surplus power during low demand and its release during peak times. They play a key role in stabilizing the grid and supporting the integration of renewable energy sources.

Back up


The most common faults in power supply networks are short-term voltage drops.These faults are caused by inrush currents from technological equipment or shortcircuits or faults from the distribution grid. Although they usually only last for fractions of a second, they can lead to big problems. For example, a voltage drop of 1 second has serious consequences for the manufacturing industry. A high degree of automation of individual processes and continuously running production lines requires an absolutely stable, problemfree environment. UPS sources are suitable for this solution only for short drops, due to the high pricefor their capacity. Other backup sources such as diesel generators, on the otherhand, have low costs but a very long reaction time (>1 min)


BESS systems can ensure continuous operation during short-term drops (>200ms)thanks to continuous monitoring of grid parameters. In case of problems, they can quickly switch to the function of a backup source and provide electricity until the time required for start-up.

Black start


In the case of high instability or resource outages in the transmission network, itsextensive outages may occur, the so-called “blackout”. To subsequentlyrestore the supply and production of electricity, it is necessary to gradually start up sources and energy nodes. For this launch, transmission network operators must contract equipment that has such capability.


BESS can serve as a synchronizing element and help with the start-up of thenetwork or production resources to ensure the restoration of transmission and distribution networks

Battery Energy Storage System

Battery storage refers to systems that store energy in chemical form inside batteries for later use. These systems are essential for managing energy supply, allowing for the storage of surplus power during low demand and its release during peak times. They play a key role in stabilizing the grid and supporting the integration of renewable energy sources.


Container battery energy storage

Container battery energy storage systems are modular, portable solutions that house batteries in shipping containers for flexible and scalable energy storage. These units are easily deployable to various locations, making them ideal for temporary or remote power needs. They support grid stability, renewable energy integration, and can quickly adapt to changing energy demands.

Clean energy solutions

Clean energy solutions utilize renewable technologies like solar, wind, and hydropower to provide sustainable, low-carbon power. These technologies reduce environmental impact and enhance energy security. They are essential for combating climate change and promoting a sustainable future.


In battery terminology, a cycle refers to one complete charge and discharge process. For example, if a battery is charged from 0% to 100% and then discharged back to 0%, it completes one cycle.



Depth of Discharge. It represents the percentage of a battery’s capacity that has been discharged relative to its overall capacity. For example, if a 100 Ah battery has delivered 50 Ah of energy, it has undergone a 50% depth of discharge.


Energy data management

Energy data management involves collecting, analyzing, and utilizing data related to energy consumption to optimize usage and improve efficiency. This process helps organizations identify patterns, forecast demand, and implement energy-saving measures. It plays a crucial role in reducing costs, enhancing operational efficiency, and supporting sustainability initiatives.

Energy management system

An energy management system (EMS) is a framework that monitors, controls, and optimizes the performance of energy generation, transmission, and consumption within a facility or organization. EMS uses real-time data to improve energy efficiency, reduce costs, and ensure continuous energy supply. This

system is essential for businesses aiming to enhance their operational sustainability and comply with regulatory energy standards.

Energy optimization software

Energy optimization software improves energy efficiency by using algorithms and data analytics to monitor and manage consumption. It identifies inefficiencies and suggests optimal usage strategies, helping facilities reduce costs and environmental impact. The software automates control systems like HVAC and lighting based on real-time data.

Enviromental sustainability

Environmental sustainability focuses on managing natural resources and human activities to preserve ecosystem health and resilience. It aims to minimize environmental impact and ensure resource availability for future generations. Key practices include reducing waste, using renewable energy, and promoting sustainable agriculture.

ESG goals

ESG goals encompass environmental, social, and governance criteria aimed at promoting sustainability and ethical practices in organizations. Environmental goals focus on sustainability efforts; social goals improve community and employee relations; governance goals enhance transparency and accountability. These goals support societal well-being, sustainable development, and can improve long-term profitability.




Devices can change their production or consumption curvesdepending on the needs of the energy market. Flexibility is mainly used by electricity traders to solve the portfolio and its deviations, purchase, and sale of energy.


BESS is always able to provide additional flexibility in addition to other functionalities – this is especially optimal for sufficient use of the battery over time and the use of its parameters and battery cycles. BESS is thus usually connected to the electrical trader’s system, to which it sends information about its available power and capacity and receives commands for activation (charging or discharging) from it.


Grid resillience

Grid resilience is the ability of an electrical grid to withstand and recover from disruptions like natural disasters or cyber-attacks. It involves using advanced technologies and robust infrastructure to enhance stability. These measures ensure a continuous power supply and minimize outages.

Green energy systems

Green energy systems harness renewable sources such as solar, wind, hydro, and geothermal to produce environmentally friendly electricity. They reduce reliance on fossil fuels and cut greenhouse gas emissions. These systems support energy security, environmental conservation, and economic stability.


ISO 50001

ISO 50001 is an international standard for energy management systems, helping organizations enhance energy efficiency and reduce costs. It provides a framework for developing energy policies, setting targets, and making informed decisions based on energy data. This standard supports continual improvement in energy performance and environmental impact.

Island grid


BESS for these solutions function as a stabilizing element, where they usually ensure:

  • Back-up in case of failure of one of the sources until the start of another
  • Storage of excess energy (mainly from renewable sources)
  • Monitoring and adjustment of electricity quality parameters


BESS can serve as a synchronizing element and help with the start-up of thenetwork or production resources to ensure the restoration of transmission and distribution networks.


Lithium-ion battery

Lithium-ion batteries are the most modern way of storing energy. It offers high energy density and a long lifespan Its ability to quickly charge and maintain performance can provide multiple different functionalities.


This stands for Lithium Iron Phosphate, which is a type of lithium-ion battery chemistry known for its high energy density, long cycle life, and enhanced safety characteristics compared to other lithium-ion chemistries.


Microgrid software

Microgrid software manages and controls localized grid systems, optimizing energy distribution from diverse sources including renewables. It supports real-time analytics and automated controls to maintain stability and performance. The software enables microgrids to operate independently or integrate seamlessly with the main power grid.


Non-renewable energy

Non-renewable energy sources, including coal, oil, natural gas, and nuclear power, are finite and slow to replenish. They are central to industrial development and power generation but can pose environmental risks such as pollution and greenhouse gas emissions. The reliance on these sources raises sustainability concerns as reserves dwindle and environmental impacts grow.


Nickel Manganese Cobalt. It’s another type of lithium-ion battery chemistry that uses a combination of nickel, manganese, and cobalt in the cathode. NMC batteries are known for their high energy density and are commonly used in electric vehicles and energy storage systems.


Peak shaving


Consumers who take electricity from the distribution grid pay for holding capacity for their electrical load – one-time connection fees and monthly payments for holding capacity. However, their consumption does not have a stable course over time, but so-called “load peaks” occur with them, which increase the value of the held capacity. These load peaks are usually set only for a short period of time during the start-up of significant appliances.


Thanks to their fast reaction time, BESS can help reduce these load peaks by taking electricity from the distribution grid at their time and at the same time supplying electricity from BESS in parallel.

Price arbitrage


Consumers can purchase at dynamic prices (SPOT prices on the market), which depend on current prices on the energy exchange or customers who use different energy prices at the time of day based on the tariff system.


BESS would be used in such a way that it would be charged at a time of low energy prices (on the market or a lower value tariff) and would supply energy at a time when the prices for the purchase of energy are higher. Thanks to advanced prediction systems, BESS can predict the price of energy on the market or have the tariff schedule loaded into the system so that it functions optimally. In this way, for example, energy from production surpluses can be charged for cheap over the weekend or prepared for the implementation of other functionalities. The solution can also be used for a stand-alone battery connected to the network in case of high differences in the price of electricity during the day.

Power quality


Various phenomena in the electrical network cause distortion ornon-standard parameters of the electrical network. Non-observance of the standard parameters of the electrical network subsequently results in reduced efficiency, more frequent equipment outages or faster degradation. First of all, harmonic currents load the network beyond what is technically necessary, which means that circuit breakers, transformers, lines, etc. must carry more current. Secondary harmonic currents distort the mainsvoltage. In addition, resonances and clock frequency effects also lead to deviationfrom the ideal voltage. An active harmonic filter, usually a frequency converter, can smooth out harmonics and eliminate associated side effects.


If BESS has appropriately designed inverters, it can also solve the elimination orsuppression of individual phenomena such as:Voltage instability on individual phases Active harmonic filtering.

Power factor compensation


In networks with alternating current (AC), the occurrence of reactive power isinevitable. Reactive currents are caused by inductive and capacitive loads, but also by network elements such as cables and transformers. Inductive loads arise, for example, in devices that generate an electromagnetic field.Static reactive power compensation consists of a capacitor or reactor bank that can be switched in steps. This solution is sufficient for networks or devices withrelatively constant reactive power consumption. Frequency converters are used for dynamic power factor correction, which can smoothly compensate for rapidly changing reactive current loads.


BESS can implement power factor compensation on its inverters in a very largerange (from -1 to +1) and use instead of capacitors or damping coils, which areoperationally expensive, battery cells.


Renewable energy

Renewable energy comes from naturally replenishing sources such as solar, wind, hydro, biomass, and geothermal. These sources produce minimal greenhouse gases, helping to reduce environmental impact. Their sustainable nature is crucial for meeting energy demands and combating climate change.

Renewable solar energy

Renewable solar energy refers to energy derived from sunlight using various technologies such as photovoltaic (PV) panels, solar thermal systems, and concentrated solar power (CSP). It is considered renewable because sunlight is an abundant and continually replenished source of energy. Solar energy is harnessed through solar panels, which convert sunlight directly into electricity (PV panels) or utilize sunlight to heat water or air for various purposes (solar thermal systems).

Renewable energy management

Renewable energy management optimizes the production and integration of sources like solar and wind into the energy grid. It involves monitoring and predicting energy outputs and managing infrastructure for maximum efficiency. The goal is to harness renewable resources effectively, promoting sustainability and reducing emissions.

Renewable wind energy

Renewable wind energy utilizes turbines to convert wind into electricity, offering a clean and sustainable power source. Wind farms, located onshore or offshore, efficiently capture kinetic energy. This rapidly growing sector helps reduce reliance on fossil fuels and minimizes environmental impact.


Rate of energy transfer. This refers to how quickly energy can be transferred into or out of a battery.


Smart grid energy storage

Smart grid energy storage integrates battery systems with advanced grid technology to optimize energy management and reliability. It enables real-time adjustments to energy supply and demand, improving efficiency and supporting renewable integration. This technology enhances grid stability and reduces energy costs.

Smart grid technology

Smart grid technology enhances the electrical grid with digital communication to improve efficiency, reliability, and economics of electricity. It allows for real-time power management and seamless integration of renewable energy. This technology also increases grid resilience by automatically responding to system changes.

Sustainable energy management

Sustainable energy management focuses on using renewable resources and efficiency practices to meet current energy needs without harming future generations. It aims to reduce environmental impact and ensure a reliable energy supply through innovative technologies and conservation policies. This approach promotes a responsible and sustainable energy landscape.

Sustainable development

Sustainable development aims to balance economic growth, environmental stewardship, and social inclusion to meet present needs without compromising future generations. It addresses global challenges such as climate change, poverty, and inequality. This approach promotes equitable and balanced progress for all sectors of society.


A solar farm is a large-scale installation that uses solar panels to convert sunlight into electricity. Spread across extensive areas, these farms feed significant power into the grid, supporting multiple consumers. They play a vital role in reducing fossil fuel reliance and promoting sustainable energy.


State of Health. This indicates the current condition or health status of a battery relative to its original condition when it was new. SoH is often expressed as a percentage, where 100% represents a fully healthy battery and lower percentages indicate degradation over time.

Sustainable energy

Sustainable energy encompasses environmentally friendly, economically viable, and socially accepted sources such as solar, wind, and hydro. It aims to meet current energy needs with minimal environmental impact. The focus is on reducing carbon footprints, conserving resources, and promoting energy efficiency and innovation.


Time shifting


Electricity production takes place continuously (classical sources) or depending on the weather (renewable sources), and its supply to the grid or use for own consumption does not bring the same benefits over time. Since the price of electricity changes during the day concerning the demand/supply in the market, the economic benefit is different.


The goal is to realize the transfer of peak electricity production to the time when the benefit from it is maximum. At the time of peak production, electrical energy is stored in the BESS and subsequently used from it in a later period.

Technical lifetime

This refers to the expected or estimated lifespan of a battery based on its design, usage patterns, and environmental conditions. It’s often expressed in terms of the number of cycles or years of operation before the battery’s performance degrades to a specified level.

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