Battery storage in energy performance contracts
How BESS adds value, flexibility, and resilience to EPCs
Introduction
As industries move toward electrification and renewable energy adoption, one challenge remains consistent: How to store and manage electricity effectively. Enter Battery Energy Storage Systems (BESS) — a transformative technology increasingly included in modern Energy Performance Contracts (EPCs).
Battery storage plays a central role in making EPCs more flexible, resilient, and cost-effective. In this post, we’ll explore how BESS integrates with an EPC, the value it adds, and why it’s becoming an essential part of industrial decarbonisation strategies.
Why battery storage matters in an EPC
Energy Performance Contracts are designed to deliver long-term energy savings without requiring upfront investment. They often involve renewable generation such as solar PV. But renewables are inherently intermittent — they don’t always produce energy when it’s needed.
That’s where BESS comes in. Batteries allow excess energy to be stored when production is high (e.g., midday solar) and released when demand peaks or grid prices spike. This time-shifting capability maximises the use of behind-the-meter renewables and reduces reliance on expensive or carbon-intensive grid electricity.
Three key benefits of BESS in an energy performance contract
1 - Energy Cost Optimisation
2 - Resilience and Reliability
3 - Grid Interaction and Ancillary Services
How battery storage works within the EPC structure
In a typical Energy Performance Contract, battery storage is owned, operated, and maintained by the service provider. The system is integrated into a broader Energy Management System (EMS) that controls how and when energy is generated, stored, or consumed.
This optimisation is often handled under a separate Optimisation Agreement, where the provider (e.g., a company like Plexar) makes day-ahead decisions on whether energy flows to the customer, the grid, or the battery. The profits from these optimisation activities can be shared, aligning incentives between provider and customer.
Importantly, all of this happens without the customer needing to manage the technical complexities or bear the performance risk.
Battery storage as an enabler of electrification
As industries electrify everything from heating and cooling to transportation and manufacturing, electricity demand becomes more variable and sensitive to grid conditions. BESS smooths these peaks and fluctuations, making electrification not only feasible but strategically advantageous.
By integrating BESS into an EPC, companies can unlock:
- Faster ROI on renewable energy assets
- Reduced CO₂ emissions through greater self-consumption
- Increased energy independence and planning certainty
Final thoughts
Battery Energy Storage isn’t just a technical add-on — it’s a strategic enabler of next-generation Energy Performance Contracts. By unlocking flexibility, reducing costs, and enhancing energy security, BESS makes it easier for industrial players to transition toward cleaner, smarter energy systems.
If your organisation is exploring electrification or renewable integration, now is the time to consider an EPC with battery storage. It’s the most future-proof way to power operations — and it comes with no upfront cost.
FAQ
What is the role of battery energy storage in an Energy Performance Contract?
Battery Energy Storage Systems (BESS) help store excess energy — often from renewable sources like solar or wind — and release it when demand or electricity prices are high. In an Energy Performance Contract, BESS allows for energy cost optimisation, improved reliability, and efficient use of on-site generation.
How does battery storage reduce energy costs in an EPC?
Can battery systems provide backup power under an Energy Performance Contract?
Who owns and maintains the battery system in an EPC?
In most EPC structures, the battery system is owned, operated, and maintained by the service provider or third party. The customer simply benefits from the optimised energy usage without needing to invest in or manage the system.
Is battery storage necessary for every Energy Performance Contract?
Not always — but it’s increasingly common, especially when renewable energy is involved. BESS is highly recommended in EPCs that rely on intermittent energy sources, or where energy resilience and optimisation are priorities.
