Do battery-based energy storage systems degrade over time?

All battery-based energy storage systems degrade over time, leading to a loss of capacity. As the energy storage industry grows, it’s critical that project developers proactively plan for this inevitable ‘degradation curve’.

How does temperature affect battery degradation?

Temperatures, both hot and cold, can also have a significant effect on battery degradation. Traditionally, developers have accommodated battery degradation by oversizing their installations at the initial outset of the project.

How do developers deal with battery degradation?

Traditionally, developers have accommodated battery degradation by oversizing their installations at the initial outset of the project. This approach involves installing more battery capacity upfront than needed and typically consists of site preparation, wiring, and system integration.

What is battery degradation management and augmentation?

Careful battery degradation management practices including augmentation will enable developers to drive greater performance, lower lifetime costs, and keep the renewable energy transition moving forward.

Should energy storage be a 'degradation curve'?

As the energy storage industry grows, it’s critical that project developers proactively plan for this inevitable ‘degradation curve’. Failing to do so will not only limit potential revenues but could even jeopardise the role of energy storage as a key enabler of grid stability and, by extension, the energy transition.

Which energy storage systems are prone to rapid degradation?

Energy storage systems that engage in heavy arbitrage are particularly prone to rapid degradation. Arbitrage strategies involve purchasing and storing energy when prices are low and selling and discharging it when the demand for energy increases.