Distribution system operators face growing challenges from decentralized feed-in and rising loads. BESS stabilizes the local grid, avoids millions in grid upgrade investments, and creates an additional revenue stream.
Grid services are capabilities provided at the local distribution grid level. Unlike ancillary services, which Swissgrid procures at the transmission grid level for frequency regulation, grid services ensure the stability and quality of the regional power grid.
Distribution system operators in Switzerland face growing challenges: more PV feed-in, increasing loads from electric mobility and heat pumps, plus aging infrastructure. A battery energy storage system (BESS) can resolve these congestion points locally without the need for extensive upgrades to power lines and transformer stations.
Grid Services vs. Ancillary Services
Ancillary services serve frequency regulation in the transmission grid (Swissgrid). Grid services serve grid quality in the distribution grid (local grid operators). Both applications can be served simultaneously with a single BESS.
The energy transition is fundamentally changing the distribution grid. Decentralized PV systems feed in intermittently, electric vehicles and heat pumps create new load peaks, and existing infrastructure is reaching its limits. Grid operators face a choice: invest millions in grid upgrades or use flexible alternatives.
A BESS provides that alternative. It responds in milliseconds, balances feed-in and load fluctuations, and keeps grid quality within prescribed parameters. This buys time and saves costs.
Why Battery Storage?
Grid upgrades take years and cost millions. A BESS can be installed within a few months and provides immediately effective grid support. The investment pays for itself through grid service contracts and additional revenue streams.
Local
Local Grid Stabilization
BESS delivers active and reactive power directly in the distribution grid. Voltage fluctuations and congestion are compensated locally, without the need for expensive grid upgrades.
M CHF
Avoiding Grid Upgrades
Grid upgrades at the distribution level cost millions and take years. A battery storage system can bridge congestion as a temporary or permanent alternative and reduce the need for expansion.
Revenue
Additional Revenue Stream
Grid service contracts with distribution system operators create predictable income. Combined with self-consumption optimization or ancillary services, a multi-layered revenue model emerges.
Congestion Management
When grid capacity is insufficient, the storage discharges and relieves the critical grid section. This prevents overloads without having to disconnect consumers.
Voltage Regulation
BESS provides reactive power for local voltage support. Particularly in distribution grids with high PV feed-in, this helps maintain voltage bands and ensure grid quality.
Forecast Balancing
Deviations between forecasted and actual feed-in or load are balanced by the storage in real time. This reduces balancing energy costs for the grid operator.
Load Flow Optimization
The storage shifts energy flows in time and space. This utilizes grid sections more evenly and makes better use of existing infrastructure.
Find all use cases in detail on our use cases page.
Together we evaluate whether your BESS is suitable for local grid services.
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Ancillary services are provided at the transmission grid level for Swissgrid. They focus on frequency regulation across the entire Swiss grid. Grid services, on the other hand, are provided at the distribution grid level for local grid operators. Grid services include congestion management, voltage regulation, and forecast balancing in the regional grid. Both applications can be combined with a single BESS.
The grid operator defines the requirement: e.g., congestion management at a specific grid node, reactive power provision, or forecast balancing. The BESS operator provides the agreed capacity and is contractually compensated. Control is handled via the energy management system in coordination with the grid operator.
Grid service contracts are negotiated bilaterally between the BESS operator and the distribution system operator. Terms depend on location, required capacity, and contract duration. Multi-year framework agreements with defined availability and performance requirements are typical. NRG Solutions supports negotiation and contract structuring.
Yes. A BESS can simultaneously provide grid services, self-consumption optimization, peak shaving, and ancillary services. The energy management system automatically prioritizes the most economically advantageous application. Grid service obligations typically take precedence since they are contractually bound. The remaining capacity is used for other revenue streams.
For grid services, the BESS needs a fast response time (seconds to milliseconds), the capability for reactive power provision, and a communication interface to the grid operator. Dimensioning depends on the specific deployment purpose. NRG Solutions dimensions and configures the storage to match the agreed service scope.
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