Because the sun does not always shine and the wind does not always blow, ensuring that renewable sources can reliably meet society’s energy demands has long been a challenge for clean energy advocates. Battery energy storage systems (or “BESS”), however, may be a solution. To balance out the intermittent and non-dispatchable characteristics of renewable resources, BESS store excess solar or wind energy until it is needed to meet demand. Using BESS in conjunction with solar or wind power generation improves the reliability of those sources, which helps stabilize the grid while decreasing society’s reliance on fossil fuels. BESS also have the potential to ensure the transition to renewable energy sources advances environmental justice (“EJ”) for all.

BESS may yield EJ benefits if battery storage facilities are constructed in place of retiring fossil fuel plants. Battery energy storage is expected to help phase out the use of “peaking” power plants (or “peaker” plants) in the journey to full decarbonization. In fossil fuel-based energy systems, peaker plants generate electricity as needed to meet peak demand, yet they have been proven to be inefficient, expensive, and a source of substantial greenhouse gas emissions and air pollutants. As battery energy storage offers similar grid stability and reliability benefits, old peaker plants can be replaced by BESS without compromising the energy system’s peaking capacity and the reliability that capacity ensures. By displacing peaker plants, the recent rise in battery energy storage promises to increase energy resiliency, mitigate climate change, and reduce local air pollution from fossil fuels.

Thus, replacing fossil peaker plants with battery energy storage can promote environmental justice because peaker plants disproportionately affect EJ communities. Most peaker plants are located near low-income and underserved populations, contributing to increased air pollution in those communities. In addition to their carbon emissions, peaker plants emit harmful ground-level air pollutants that can cause nearby populations to experience increased rates of respiratory illness and other adverse health consequences. When sited in place of fossil peaker plants, BESS projects may alleviate certain health and environmental inequities by reducing local air pollution in EJ communities. 

In addition to improving air quality, replacing peaker plants with BESS may result in economic benefits for EJ communities through lower energy prices, increased tax revenues, and quality job creation. 

• Affordable Energy: Replacing peaker plants with BESS can help lower consumer energy prices, particularly by reducing peak demand charges. A recent report found that replacing Maine’s existing peaker plants with utility-scale BESS would be more cost-effective than installing new gas peakers. Similarly, one assessment found that battery storage is a “viable” alternative to constructing a new peaker plant in Massachusetts that would result in reduced emissions and costs. This cost-effective energy production could lead to consistently lower consumer energy prices, especially as the cost of BESS is expected to decline over time.
• Tax Revenue: Hosting a BESS facility may generate tax revenue for EJ communities and help improve the local economy. It is currently uncertain whether host communities can collect more tax revenue from peaker plants or battery energy storage facilities, and the answer likely varies depending on applicable state and local tax laws. For example, BESS may qualify for certain property tax exemptions in some states. As the cost of batteries continues to decline, however, battery energy storage is likely to become increasingly profitable, which may allow some host municipalities to collect more in property taxes from BESS facilities. Additionally, because the air pollution produced by peaker plants depresses nearby property values, replacing these plants with BESS—generally safer than peaker plants, less disruptive, and producing no direct emissions—may improve property values throughout the surrounding area. 
• Job Creation: As they typically only run for less than 1,500 hours per year, peaker plants are not a major source of employment. In contrast, battery energy storage projects are creating many new jobs in construction, manufacturing, business services, and other fields. In 2023, the U.S. Department of Energy reported that battery storage employed 72,923 workers, representing 81% of all Transmission, Distribution, and Storage jobs across the entire energy industry. Additionally, the number of BESS-related jobs is expected to increase, whereas fossil fuel-related employment is declining. Furthermore, by supporting the expansion of the renewable energy industry, BESS contribute to an increasing number of jobs in the clean energy sector, which currently accounts for over 84% of new net electric power generation employment. 

It is important to note that battery energy storage is not free of equity concerns despite these wide-ranging health, environmental, and economic benefits. As with any large industrial development, BESS projects can raise issues for EJ communities. However, by giving thoughtful consideration to the EJ implications of their projects, BESS developers can help ensure that battery energy storage lives up to its potential as a tool for affirmatively advancing environmental justice.

Foley Hoag Summer Associate Lexi Neilan co-authored this article.