LG Energy Solution Shares Key BESS Growth Insights for 2024LG Energy Solution Shares Key BESS Growth Insights for 2024

Battery Energy Storage Systems (BESS) are becoming crucial for transitioning to renewable energy. They enable grids to store excess power from sources like solar and wind and release it when needed. This technology addresses the intermittency of renewable energy, ensuring a stable and reliable power supply while reducing reliance on fossil fuels. As the global demand for clean energy grows, the BESS market is rapidly evolving, with projections showing that it will play a major role in energy infrastructure.

Battery Technology spoke with Tristan Doherty, the Chief Product Officer (CPO) at LG Energy Solution Vertech, ahead of his appearance at Battery Show North America 2024, where he will share insights on BESS technology. During our conversation, Doherty emphasized the growing attention BESS projects are receiving as the industry reaches an inflection point.

 “Discussions of BESS projects and technologies are getting a lot of attention now because the industry is at an inflection point,” Doherty explains. Industry researchers predict the BESS market will reach about 50% of the size of the automotive EV market by 2030.

Tristan Doherty, CPO, LG Energy Solution Vertech. Courtesy of LG Energy Solution Vertech.

A full-spectrum point of view

LG Energy Solution Vertech was established when LG Energy Solution acquired NEC Energy Solutions in February 2022 to vertically merge battery manufacturing and energy storage system integration. LG Energy Solution has announced plans to build a major battery manufacturing complex in the US to manufacture lithium iron phosphate (LFP) pouch cells for BESS projects. “LG Energy Solution is well-known as one of the world’s major lithium-ion battery manufacturers, so it’s good to get known we are all-in on LFP for BESS installations,” Doherty notes. The company calls its “long cell”-based processing technology for LFP batteries “unique and will feature improved energy density and safety.”

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In addition to batteries, LG Energy Solution Vertech also supplies battery containers, power combiners, AI-enhanced controls software, and warranty-backed systems integration services for the life of its BESS projects.

Fast growth, big projects

When asked about the business, Doherty replied, “We are moving out of the early project phase of our growth (20 or 50 MWh projects) and are becoming established in the energy infrastructure business case with much larger 1GWh+ projects.”

Indeed, at the close of December 2023, the company announced it was selected for US-based energy-storage projects totaling 10 GWh. As the World Meteorological Organization recently announced, last year shattered climate records and is set to be the warmest year on record. According to the Environmental Protection Agency’s Greenhouse Gas Equivalencies calculator, these newly announced installations combined equate to diverting almost 8 million pounds of coal or 16 million pounds of Co2 emissions annually from now on.

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The big get bigger

LG Energy Solution recently secured a large-scale supply agreement with Hanwha Qcells to supply ESS batteries totaling 4.8GWh.  The agreement marks the largest portfolio of ESS projects LG Energy Solution has ever undertaken in global power grid projects. ESS batteries will be supplied to La Paz County, Arizona, with delivery completion targeted for October 2026. LG Energy Solution Vertech will provide ESS system integration.

Controls at the site and in the cloud

LG Energy Solution Vertech’s AEROS system integrates on-premise controls with AEROS Cloud SaaS to enhance BESS performance through AI-driven analytics and remote monitoring. The on-premise software provides energy management, power plant controls, and site-level operating modes, ensuring active monitoring of critical components, cybersecurity, and autonomous site operation. AEROS Cloud further optimizes system performance with predictive analytics, data visualization, and digital twin technology for advanced maintenance. Together, these tools offer seamless renewables integration, reliability through redundancy, and enhanced system security, allowing customers to manage energy storage systems effectively and efficiently across large-scale projects.

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Editor's Note: Together with Michael Sanders, senior adviser at Paris-based consultants Avicenne Energy, Doherty will lead Battery Show North America 2024 conference attendees on an in-depth review of BESS technology, projects, and industry issues at his keynote address Tuesday, October 8, at 9:15 am at Detroit’s Huntington Place.