Is It Safe to Put a Battery in the Basement? Let’s Talk About the Future of On-Site Energy
You wouldn’t put a huge battery in the basement of a hospital, office block, or data centre, would you? The risk of fire has historically made Battery Energy Storage Systems (BESS) a no-go for sensitive buildings. But at NovAzure, we wanted to know if there was a safer way that makes it possible.
The Problem: Rising Demand Meets Grid Constraints
Technologies demanding ever more power are being adopted at pace. But with grid capacity stretched to its limits — and new grid connections taking anywhere from 5 to 10 years to be installed — alternative energy solutions are no longer a nice-to-have. They’re essential.
Behind-the-meter renewable generation (like on-site solar or wind) can help bridge the energy gap. But what happens when the wind stops blowing or the sun goes down and/or the grid collapses under the strain? Spain provides a recent case study to illustrate the challenges.
Case Study: Spain’s 2025 Blackout And The Future Role of Battery Storage
In July 2025, Spain suffered a nationwide electricity blackout caused by a cascading failure in the high-voltage transmission network. Triggered by an overheated substation near Zaragoza during a prolonged heatwave and record electricity demand, the failure rapidly destabilised the grid. Major urban centres, including Madrid and Barcelona, were without power for hours, impacting over 12 million people. Transport systems, hospitals, and industrial operations were severely disrupted, revealing critical weaknesses in grid resilience.
The blackout exposed structural challenges: aging infrastructure, high reliance on intermittent renewables, and insufficient flexibility in grid operations. In response, the Spanish government and grid operator Red Eléctrica Española committed to modernising the power system with a strong focus on battery storage.
REE Chair Beatriz Corredor announced revisions to operating procedures to allow renewables and battery storage (via inverter‑based resources) to participate in voltage control services for the first time in Spain. SolarPower Europe and other stakeholders strongly endorsed accelerated investment in grid-forming inverters and battery storage, stating these technologies are essential and already available to stabilise voltage and manage variability. Regulatory changes were fast-tracked to allow inverter-based resources to provide essential grid services.
This event has catalysed investment in storage and flexibility, including market incentives for battery integration. Spain’s response highlights the growing necessity of large-scale energy storage as both a buffer against climate-driven volatility and a foundational element of a modern, resilient, renewables-led grid—serving as a critical lesson for energy systems across Europe.
The Solution: Smarter, Safer BESS
So BESS can step in — storing excess renewable energy and releasing it when supply dips. But let’s face it: BESS has a reputation problem. Stories of thermal runaway and hard-to-extinguish fires have made headlines. For buildings like hospitals, schools or commercial towers, that’s a serious concern.
But not all BESS are created equal.
Innovation in Action: Immersion Cooling & LFP Chemistry
At NovAzure, we’re working with pioneering start-ups like Anodox and major players alike to bring a new generation of BESS to market — ones that prioritise safety, performance, and longevity.
LFP (Lithium Iron Phosphate) cells: inherently more stable than other lithium battery chemistries.
Immersion Cooling: instead of relying on air, the battery cells are submerged in a dielectric oil bath, providing exceptional heat dissipation and a more even temperature across the pack.
Higher performance: even at elevated charge/discharge rates (C-rates), the system runs cooler and lasts longer — perfect for demanding applications like energy arbitrage.
Longer lifespan: cells degrade more slowly when kept at uniform temperatures, saving money and reducing waste. Immersion can up to double the lifetime of a BESS system, saving overall on total costs of ownership.
And yes — this technology significantly reduces fire risk!
Backing Global Players
We’re proud to support Shell in scaling Immersion-Cooled BESS worldwide. Shell is not only developing cutting-edge fluids tailored for battery performance, but is also putting safety first, every step of the way.
Share Your Thoughts
Are you scaling a business to become a key player in the BESS market? What’s your view about addressing the safety concerns of the technology? Are you considering BESS applications for your site — or have you ruled one out due to safety concerns — do you agree that it’s time to rethink what’s possible? Let me know your thoughts.
