The rationale behind these operating boundaries is understandable. Batteries are electrochemical devices and the degradation is heavily influenced by the way the batteries are operated.

While these restrictions are intended protect battery systems from abuse and enable OEMs to stand behind their performance guarantees throughout the warranty period, these same restrictions can prevent asset owners from fully optimising their batteries when market opportunities arise.

The challenge lies in balancing these limitations against the flexibility required to maximise project value.

The concept of flexible degradation applies to BESS projects globally, but the specific market reference in this article is from projects operating in Australia’s National Electricity Market (NEM).

The value that is potentially lost