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Replacing diesel generators with battery energy storage

Diesel generators offer a quick fix for manufacturing and engineering facilities that need more power than the grid can provide. But a battery energy storage system (BESS) can be a cleaner, smarter alternative.

01/04/2025

Author: Jonathan Mann, Technical Sales Manager

In brief:

  • Outdated grid infrastructure is limiting business growth in industrial areas, with traditional diesel generators becoming increasingly expensive and problematic.
  • Battery energy storage systems offer a cleaner alternative that saves costs long-term, reduces emissions, improves worker safety, and can even generate additional revenue.
  • Connected Energy provides end-to-end support from technical analysis to maintenance, making the transition to battery storage straightforward for manufacturing businesses.

Access to energy shouldn’t be a barrier to growth, yet outdated grid infrastructure across many industrial estates is holding businesses back. Built decades ago, many industrial estates weren’t designed for today’s electricity needs, meaning expanding operations can lead to significant – and sometimes insurmountable – costs.

For years, the solution to these problems has been installing a diesel generator. They offered a relatively cheap and reliable way of giving your factory or facility an additional power boost.

However, there are several drawbacks to using diesel generators. Firstly, diesel is now a lot more expensive than it was a few years ago. The UK Government banned the use of red diesel in generators in 2022, leading to a significant increase in operating costs for generators.

Secondly, diesel generators like to be busy. If you are only running the generator to deal with spikes in your energy consumption, the rest of the time it is idling. This is not good for the engine and can lead to inefficient operation or breakdown.

Thirdly, diesel generators create a lot of greenhouse gas emissions and air pollution. You can switch to biofuels like HVO to cut carbon emissions, but this is more expensive. Also, HVO does nothing to mitigate the carcinogens and other hazardous chemicals in the exhaust fumes.

Replacing diesel generators with energy storage

A battery energy storage system is specifically designed to provide additional power, making it an ideal choice for manufacturers in this predicament. Essentially a BESS acts as an energy reservoir. It draws down power during quiet periods for your facility, such as overnight – when electricity is often cheaper. That power is then available as required, to meet spikes in demand.

For manufacturing companies looking to increase their power supply, a battery energy storage system does the same job as a generator, but better. Here’s why BESS outperforms diesel generators across the board:


Cost savings:
BESS is cheaper in the long run than a diesel generator, while still avoiding penalties for exceeding your ASC, and paying for an expensive grid upgrade.

Environmental impact: Lower carbon emissions by replacing diesel generators, enabling businesses to transition towards net zero. This is becoming increasingly important as your customers look to reduce Scope 3 emissions from their suppliers.

Health & Safety: Diesel generators create air pollution which could impact the health of employees.

Energy resilience: Diesel generators can have reliability issues depending on how they are used.

Revenue generation: A BESS can also earn you money through various incentive programmes.

 

Making it easy

Connected Energy makes the entire process easy by providing expert assistance at every step.


Technical analysis:
Our experts analyse your site’s energy usage to identify issues. This is followed by a feasibility study to demonstrate how a BESS could help.

Financial projections: We calculate the return on investment, providing you with solid financial forecasts to build the business case.

Funding: We can bring a range of funding options to the table and even help with funding applications.

Turnkey deployment: From selecting the best site to overseeing installation, our experts manage everything.

Revenue: Where business operations allow, we can identify opportunities to monetise your BESS through grid services and incentive programmes.

Maintenance support: While the system is self-sustaining, we also provide ongoing technical support.

 

Interested in learning more about energy storage in manufacturing?

Delve a little deeper into the topic of battery energy storage for the manufacturing sector in our latest industry guide.

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