Market RadarBESS & Batterijparken
Operational Data Crucial for BESS Project Bankability
Operational data from existing battery storage projects are crucial for enhancing financial models and ensuring the bankability of new BESS projects. By independently measuring actual battery performance and utilizing this information, developers and investors can make more accurate sizing and strategy decisions, leading to more robust investment cases.
The rapid expansion of the battery storage sector, with an anticipated 108 GW of new capacity deployed in 2025 – a 40% increase from 2024 – underscores the critical need for robust financial models. According to Ashutosh Vats, head of BESS business development at 3E, operational data from existing projects are crucial for accurately sizing new battery storage systems and making vital design decisions.
Project developers and independent power producers (IPPs) embarking on their first BESS projects face a significant challenge: the financial models they rely on are built on assumptions that can diverge from reality once an asset goes live. A typical battery sizing study simulates how a battery would operate over several years, assuming perfect knowledge of future electricity prices and renewable generation. While this establishes a theoretical benchmark, a deviation in, for instance, capacity fade – such as 4% instead of the assumed 2% annually – can lead to a substantial overestimation of revenue, potentially jeopardizing debt servicing.
Many models still depend on manufacturer specifications, and operational platforms often merely relay the State of Health (SoH) reported by the on-site battery management system (BMS), which frequently originates from the same OEM that issued the warranty. This makes it difficult to objectively assess the assumptions that determine a project's financeability.
The most reliable evidence stems from batteries already operating in the market. An independent digital twin can track the actual performance of connected batteries over time. This includes changes in State of Health, the impact of various degradation mechanisms, revenue captured, and availability during peak electricity price periods. 3E's SynaptiQ platform applies this principle by independently measuring battery performance and utilizing this evidence to refine models for future projects.
This operational data can then feed back into sizing tools, meaning degradation assumptions are no longer based solely on manufacturer specifications. They can be informed by how batteries with similar chemistry have actually aged under comparable operating conditions, duty cycles, and climates. This enables investors to test different battery sizes and market strategies, identifying the optimal balance between technical performance and financial returns. This significantly strengthens project bankability.
The BESS market is expanding rapidly, with substantial capital committed to new projects. As the market matures, the quality of the models used for investment decisions will become increasingly vital. Projects grounded in concrete operational evidence will possess a more robust basis for assessing risks and returns compared to those relying primarily on theoretical forecasts.
This article is based on a publication from Energy-Storage.News.
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