Standards and baseline expectations for asset performance are being redrawn, as operators make objective, trusted data central to more decisions and as asset owners integrate AI capabilities across functions. I believe that we will see a significant efficiency push right across BESS markets in the next 12 to 18 months.
BESS efficiency standards are shifting, and fast
Led by the multi-gigawatt portfolios, I expect new standards for operational performance and capital efficiency will infuse into the mass market, raising the expectations for all other BESS owners and operators in turn.
A new set of performance standards could bring genuine consequences for the asset owners that are not leading the charge, though. I expect that in the months and years ahead, a CFO seeking to expand their BESS portfolio or refinance an existing asset will have valuable cards to play if they can demonstrate their portfolio is performing at or above the level of comparable sites. If their assets are performing below the mean, they risk accessing less capital, on worse terms, with more restrictive covenants. Put simply, they are less investable and bankable.
The reality is that most BESS operators, whether they are in planning mode or operating live assets, are leaving money on the table by failing to demonstrate consistent operating discipline.
