Energy storage system

What is an energy storage system?

An energy storage system is a device that stores electrical energy (usually in batteries) so that it can be made available at a later time for your home, business, or installation. In practice, this means that you do not have to consume or feed back the electricity you generate immediately, but can first store it and use it when it is most convenient for you.

Energy storage systems are used to compensate for fluctuations in generation (such as solar and wind), mitigate consumption peaks, and relieve pressure on the electricity grid. Depending on the type of system, energy storage can also assist with energy management: controlling charging and discharging based on consumption, generation, tariffs, or grid conditions. In many applications, you also refer to Battery Energy Storage Systems (BESS): a combination of battery modules, power electronics (such as inverters), and a control layer that allows the whole system to work together safely and efficiently.

Why choose an energy storage system?

An energy storage system gives you more control over when and how you use electricity. Energy storage can add value, especially with increasing electrification (heat pumps, electric vehicles, process electrification) and fluctuating energy prices.

In practice, energy storage primarily helps to increase the consumption of self-generated energy, limit peak loads (e.g., through peak shaving), and improve business continuity when your processes are sensitive to disruptions.

In addition, a well-managed system can help reduce grid load and thus limit problems related to grid congestion, as you are less dependent on transport capacity at peak times.

How do energy storage systems work?

An energy storage system acts as a buffer between energy production and energy consumption. When there is more electricity available than you need at that moment, the system can store that energy. At times when your consumption exceeds the amount of energy generated, the system returns the stored energy to your installation.

The battery is the core component that is charged and discharged in repeatable cycles. Modern battery systems are designed to perform this process in a controlled and safe manner, with a battery management system (BMS) continuously monitoring whether voltage, temperature, and charge status remain within safe margins.

In addition to the battery, inverters and switch boxes play an important role, as they ensure the correct conversion and control of energy to your consumers or (if applicable) the grid. In many systems, an energy management system (EMS) provides the "intelligence." The EMS determines when charging or discharging is most logical based on goals such as self-consumption, peak reduction, or grid relief.

The safety of an energy storage system

Safety is an essential part of energy storage, because batteries store large amounts of energy in a compact form. A safe system starts with correct engineering, installation, and configuration, appropriate to the application and environment. Consider a suitable installation location (dry, ventilated, protected from extreme temperatures), correct dimensioning of cabling and security, and the use of components with demonstrable certification and testing.

Important measures include a properly functioning BMS, protection against overload and short circuits, and the prevention of thermal problems through adequate ventilation and correct placement.

But management and maintenance are also important: periodic inspections of connections, inverters, and safety devices help to detect wear and tear or loose connections in good time. In professional environments, additional fire safety equipment may be required (e.g., detection or compartmentalization), depending on risk analysis and local regulations.

Standards that an energy storage system must meet

An energy storage system must comply with applicable safety and installation standards in order to limit risks such as electrical faults, overheating, and fire. NEN-EN-IEC 62619 is an important standard for stationary energy storage with lithium-ion batteries. This standard sets requirements for the safety of industrial lithium-ion batteries. In addition, NEN-EN-IEC 62485-2 describes safety measures for the safe installation and use of industrial battery systems.

NEN-EN-IEC 62933-5-1 is also relevant for complete energy storage systems. This standard focuses on the system and fire safety of energy storage systems and assists in assessing and managing risks. Depending on the application, systems must also comply with general electrical installation standards, such as NEN 1010. Compliance with these standards is essential for the safe and reliable use of energy storage.

Who would benefit from an energy storage system?

Energy storage systems are interesting for both industrial applications and home use. In industry, the focus is often on managing peak consumption, ensuring continuity, and controlling energy more intelligently within processes. At home, it is usually about increasing the consumption of solar energy, limiting grid consumption at unfavorable times, and increasing independence from price fluctuations.

Energy storage system for businesses

Companies often use energy storage to smooth out consumption peaks (peak shaving) and to plan energy more intelligently around production and business processes. The system can charge at lower loads or when generating its own power and discharge during peak times, reducing the load on your grid connection.

In many projects, control via an EMS is crucial: it allows you to focus on goals such as cost reduction, limiting peaks, and reducing grid load.

Home energy storage system

In a home, energy storage is usually linked to solar panels. When you generate more energy than you consume during the day, the surplus is stored in the home battery. In the evening or at times of higher demand, that energy from your solar panel battery can be used again, reducing the amount of power you need to draw from the grid.

For many households, the practical benefits are mainly: using more of their own solar energy, being less dependent on grid consumption at peak times, and having more control over energy flows in the home.

How much does an energy storage system cost?

The costs of an energy storage system vary greatly depending on the situation, as capacity, power components (such as inverters/PCS), installation complexity, necessary safety measures, and control (EMS) have a major impact. It is therefore wise to always approach costs as bandwidths and keep them project-dependent.

For home batteries in the Netherlands, target prices are often quoted that (including installation) range roughly between €4,000 and €10,000, depending on capacity and design.

In addition, costs per kWh are also mentioned; a frequently cited range in recent market indications is around €450 to €750 per kWh, with brand, features, and installation influencing the final price.

For businesses and industrial applications, costs vary greatly. This depends on the scale and complexity of the system. Internationally, target prices per kilowatt hour stored are often quoted for commercial energy storage systems, but in practice, the final costs in the Netherlands and Europe mainly depend on project size, engineering, grid integration, and safety provisions.

Optimizing energy consumption with an energy storage system

An energy storage system is a practical way to optimize energy consumption: it allows you to better balance generation and consumption, smooth out peaks, and increase your flexibility. Safety remains a basic requirement: correct installation, appropriate safety measures, good management, and working in accordance with relevant standards and guidelines are essential for managing risks and ensuring reliable operation.

For companies that want to manage their energy consumption more intelligently, reduce costs, and at the same time reduce the load on the electricity grid, Frax's energy storage systems can be a suitable solution. Frax provides complete plug-and-play BESS solutions and supports integration with the Frax energy management system (EMS), with a focus on user-friendliness, reliability, and peace of mind for installers and projects in both industrial and residential environments.