What is your BESS thinking? Unlocking renewable energy with smarter converters, automation and services

In the race to decarbonize and advance the energy transition, we’re seeing unprecedented momentum in the renewables space. Yet with all the activity, it’s important to remember that each renewables project still relies on an energy storage system to deliver grid stability and reliability. That’s just one reason why the IEA¹ has called for a sixfold increase in global storage capacity to 1,500 GW by 2030. Further underscoring this urgency, the COP29 Global Pledge² highlighted energy storage and grid infrastructure as essential to building resilient, decarbonized energy systems worldwide.

We couldn’t agree more: advanced control solutions serve as the brain of renewable and energy storage systems, where power converters connect the distributed energy resources with the power grid, to ensure that currents and voltage are balanced correctly for end user demand. Not only are they data-intensive systems, but when paired with Hitachi Energy’s Internet of Things (IoT) connectivity and energy management capabilities, they can deliver rich insights and analytics to maximize grid reliability and flexibility.

We call this the power of connection, and it’s what motivates us every day. It’s why Hitachi Energy is pioneering innovations in power electronics and smart control space, leveraging the tremendous R&D efforts of our global subject matter experts. Together, we can leverage the power of connection to build the next generation of grid-connected storage.  

New projects and breakthroughs in power electronic technologies are coming online at a rapid pace. For example, in April 2025, the American Clean Power Association announced a landmark $100 billion commitment from the U.S. energy storage industry to build and buy American-made grid batteries — aiming to meet 100% of domestic energy storage demand by 2030. This bold commitment highlights the critical importance of scaling up battery storage capacity and modernizing grid infrastructure. 

On the other side of the world, in New South Wales, Australia, the Waratah Super Battery is a flagship project that is already demonstrating how large-scale battery systems can supercharge the energy transition by enhancing grid stability, supporting renewable energy integration and enabling new business models. 
 
But batteries and solar panels alone don't add up to an energy transition. Far more investment into researching and the developing the advanced technologies that enable these systems, including power electronics, automation, and digitalization, is needed to keep up with the demands of North America’s transition to renewable energy sources such as solar and wind.

Battery energy storage systems (BESS) have come a long way. Traditionally, they were seen as niche solutions that were limited by short energy duration, high costs, and rigid deployment models. These constraints made it difficult for BESS to scale or provide the kind of dynamic balancing that the grid demands.

But that’s changing...

Today, BESS is mature enough for large-scale deployment. The cost of lithium-ion batteries has dropped dramatically, and power conversion is now capable of delivering multiple grid services from frequency regulation to system strength. These improvements have positioned BESS as a strategic financial asset - not just a technical one. But quality in deployment and operation is crucial, especially in the integration between batteries and power conversion systems (PCS), automation, and digitalization, where most delays and downtime originate. Investing in converter technologies that prioritize reliability, and seamless integration is essential to avoid costly setbacks.

Today, they not only stabilize voltage and frequency but also timely fill in the needs of the grid, providing the required flexibility, strength, inertia and interoperability, to orchestrate distributed energy resources.

This transformation is redefining grid integration by enabling grid flexibility through active and reactive power support, improving voltage and frequency stability, and facilitating the seamless integration of renewable energy sources, thereby enhancing the efficiency and resilience of energy systems.

The difference between a basic converter and a high-performance platform isn’t just technical — it’s financial. Power Electronics based on the latest semiconductor technology, coupled with advanced control systems, unlocks additional business models which, where market dynamics and regulations allow, can be monetized through the different grid ancillary services value stacking. In this way, converters turn BESS from a cost center into a revenue-generating asset.

Continued R&D in converter design, control algorithms, and data-driven services will unlock even more value. The smarter our converters become, the more flexible, profitable, and resilient our energy systems will be.

The evolution of converter platforms isn’t only about physical design, it extends to intelligence, adaptability, and resilience. Today’s systems are being built to do more than convert power; they’re designed to predict, protect, and optimize, an evolution further accelerated by our recent full acquisition of eks Energy, enhancing its commitment and capabilities in cutting-edge power conversion R&D. Here is how:

• NextGen Silicon Carbide (SiC) converters: Delivering higher efficiency and faster switching to improve power quality and harmonic control, while enhanced thermal performance increases inverter overload limits.
• Virtual Synchronous Machine (VSM) operation: Enabling grid-forming capabilities in decentralized systems, supporting operation at very low short-circuit ratios (SCR), and enhancing inertial response and fault ride-through performance.
• Digital commissioning and operation tools: Accelerating deployment and improving safety with real-time diagnostics and a comprehensive toolbox for evaluating grid code compliance, supporting maintenance, and ensuring high-quality integration across systems.
• Cybersecure communications: Ensuring authenticated, encrypted, and resilient data exchange across distributed assets — a foundational requirement for grid-scale coordination.
• AI-based control: Powering adaptive Virtual Synchronous Machine operation, predictive maintenance, and real-time optimization through intelligent, self-learning algorithms.
• IoT-enabled converters: Facilitating real-time data collection and analysis for optimized performance, predictive maintenance, and enhanced system reliability through seamless communication with grid components.
• Digitally enabled services: Supporting reliability by investing in a digitally enabled services footprint.

With a projected 32.5 GW of new utility-scale solar capacity to be added in 2025,  North America is well-positioned to lead the global transition to sustainable energy. Regardless of which way the political winds blow, the region’s clean power industry has achieved a momentum that promises continued growth and innovation. It has become one of the world’s largest markets for BESS and ancillary services.

By continuing to adopt best practices in energy storage and grid management, operators in North America can better integrate renewable electricity sources and ensure reliable power delivery to customers while their BESS as a revenue driver.

The energy transition offers an abundance of new opportunities for energy producers in North America, but it also means that utilities must handle a variety of new demands — and find solutions quickly. They need to bring on more renewable energy sources while, at least for now, maintaining traditional ones. Additionally, they must expand energy storage by investing in batteries or other types of storage. And they are tasked with modernizing grids. All of this must be done while continuing to provide reliable electricity to their customers, from homes... to factories ...and even through to AI data centers.

The energy transition isn’t just about reducing reliance on fossil fuels, it’s about rethinking how we generate, store, and deliver power in a more intelligent, resilient, and sustainable way.

Battery energy storage systems are a critical part of that equation, but they can’t succeed in isolation. It’s the strong power of connection, between storage, converters, and the grid, that will define the next generation of energy systems.

By investing in R&D and advanced services today, we’re not just solving technical challenges. We’re building the foundation for a future where clean energy is always available, always reliable, and always connected. That’s the opportunity in front of us and the responsibility we share.

Explore how our power conversion solutions are shaping the future of energy. Discover more: https://www.hitachienergy.com/products-and-solutions/power-conversion

Or, if you’d like to speak to the team, please don’t hesitate to contact us.