Imagine a sunny day, yet solar panels are not generating energy. Or perfect wind conditions, but wind turbines remain motionless. A missed opportunity, right? This is exactly what can happen at a large scale when battery storage systems (BESS) fail to perform as expected.
BESS play a vital role in the energy transition, stabilising the grid and enabling more renewable energy penetration. They store excess renewable power when generation is high and release it when demand peaks. Additionally, BESS contributes to energy markets by providing ancillary services, frequency regulation and peak shaving, which improve overall grid resilience. Batteries are also becoming increasingly important in energy trading, offering opportunities to buy low, sell high, and capitalise on market fluctuations.
The need for more certainty in BESS performance and returns on investment
The industry is experiencing rapid growth, with global BESS installations expected to expand significantly in the coming years, driven by policy incentives, decreasing battery costs and increasing demand for energy flexibility. This growth brings some uncertainty in the financial stage. Investors need confidence in the long-term operation and performance of these systems. And operators and asset managers are continuously refining their strategies to manage degradation, maximise efficiency and extend battery lifespans to try to secure return on investment.
The role of State of Health (SoH) in battery performance
One critical metric in ensuring battery performance is the State of Health (SoH), a measure of a battery's remaining capacity relative to its original design. SoH serves as a foundation for decision-making across the industry, influencing maintenance strategies, financial modelling and asset valuation. However, estimating SoH accurately is no simple task. It requires a deep understanding of the chemical processes happening inside each battery cell. Inaccurate assessments can lead to financial losses, operational inefficiencies and increased safety risks.
How to assess and manage State of Health (SoH) of a battery?
In this whitepaper, we explore:
- The key parameters influencing SoH
- Methods for an accurate SoH assessment
- The risk of inaccurate SoH estimations
- Strategies for tracking and managing degradation
- The power of digital twin and data harmonisation in mitigating SoH risks
Essential insights for maximising battery lifespan & performance
Accurately assessing the SoH is essential for optimising BESS performance, lifespan and financial returns. However, SoH estimation comes with challenges that require a strategic approach and advanced modelling techniques.
Here’s a glimpse of what you willl discover in the whitepaper:
- SoH cannot be directly measured: it is influenced by multiple factors that vary with different operational scenarios.
- The impact of inaccurate SoH assessment: miscalculations can lead to financial losses, safety risks, inefficiencies in market participation and operational uncertainty.
- Risk-mitigation strategies: corrective, preventive and predictive strategies can help reduce risk, but they need to be properly organised to maximise battery lifespan and financial viability.
- The importance of digital twin: this advanced technology plays a vital role in enhancing monitoring and analysis, increasing BESS efficiency and performance. Additionally, they can provide an independent assessment that adds transparency to potential warranty claims.
For a deeper dive into these insights and practical solutions, download the full whitepaper.
