Unlocking data analytics could turbo-charge energy storage

In an industry constantly developing new benchmarks of innovation, battery owners and operators can find themselves constantly trying to keep up by implementing new technologies such as sodium-ion, thermal and vanadium flow batteries, to name a few.

As we see the hardware continue to progress, is it fair to say that data-driven software for analysing optimal usage is being overlooked?

After all, a significant part of the expected performance of a battery site will depend on how it is run, making it essential that operators and optimisers make the right use of the data that their fleets are producing.

It’s by no means a bad thing to see a rapidly growing industry continue to surpass previous benchmarks when it comes to technical excellence. As battery storage energy systems develop, we are seeing improved cycle performance, increased cell density and reduced degradation curves.

Equally, however, in what might be described as a race to the top, it is not the battery technology itself that is going to prove decisive. The key is to ensure that battery storage solutions are properly operated, avoiding the burden of wasted resources, longer periods of downtime, and stunted potential.

Data points

To achieve the best performance, operators need to understand and react to the valuable data points they are producing, not least because batteries produce this data on a sub-second basis, meaning that it can be analysed in real time.

They should view the physical battery as one element of their energy storage toolkit, but use it in tandem with emerging Software as a Service (SaaS) platforms to track trends in usage. This will provide a more comprehensive understanding of how to keep batteries running smoothly.

Without data visibility, battery owners and operators may not fully understand the financial losses they’re incurring – and which they could potentially overcome. For instance, whilst high-value periods of high demand, or lower-cost charging periods of high renewable generation are easy to spot, maximum value can easily be missed without a firm grasp on system performance.

By leveraging data, issues such as suboptimal dispatch of a battery can be avoided as operators can closely track market conditions and make their decisions accordingly. Whilst these data-driven changes can be marginal, cumulatively they can deliver important gains.

MORE STORAGE EXCLUSIVES
READ: Why battery storage could soon surpass solar in the UK
LISTEN: Why energy storage is a strategic priority for Europe
WATCH: How hydrogen storage turns summer sun into winter energy

Not only this, but identifying and resolving any operational issues as quickly as possible avoids a snowball effect. In the UK, battery operators interacting with the National Grid need to meet certain standards of compliance to be paid the full procurement amount that will have been agreed in advance.

It is surprisingly easy for operators not to be compliant with these metrics – which are standardised to support Net Zero goals – when they don’t have a close eye on the operational efficiency of their batteries – or when a lack of real-time data means they are only able to keep track of this on a weekly, or even more irregular, basis.

Non-compliance can lead to up to 10% of revenue being lost across a service day or delivery day - but these risks are reduced by access to closely tracked data, collected on a sub-second basis - and then analysed per 30 minute ‘delivery period’. 

Battery operators are often faced with the same question: how can a battery system be operated most effectively?

There is no single, right answer to this - what is ‘best’ will depend on how the operator is intending to use the battery.

Differing investment strategies, risk appetite and plans to resell the battery all feed into this decision-making process in terms of how the hardware can be used. Sophisticated data is a vital tool for any operator looking to decipher their own ‘best strategy’.

For battery owners set on refinancing, they will naturally be keen to invest in the best technology available at the time. But the choice of battery itself is rarely the critical decision for an operator. 

Maximum value

Rather, the key is making sure that they get the maximum possible value from the battery they do choose by optimising it. Indeed, whilst it may seem an extreme example, if a battery is consistently at an extreme state of charge, there is every chance of it being worn out within 10 years, when the expected lifespan should be 15 or even 20 years.

So, for operators prioritising longevity, access to detailed data is essential for tracking when a battery is likely to need maintenance work and when it should be, effectively, soft-pedalled.

RELATED CONTENT
UK Power Networks’ DSO launches open data analysis package
Europe’s energy sector digitalisation and AI roadmap out

The reduction in income that comes with repairs can then be minimised by pre-empting downtime and aligning it with periods of lower market demand. Data visibility is crucial here as a safeguard to monitor and protect the longer-term asset value of the battery system.

It’s also important to remember that neither batteries nor data exist in a vacuum: there is always the human element to consider as well. So, although data increases visibility, what individuals will see in that data isn’t necessarily going to be the same thing. To some extent that is an intractable problem given human nature, but misunderstandings are much more likely to arise if data is fragmented or incomplete, perhaps because it is limited to one site or asset amongst several.

Full visibility

With a full picture across an entire portfolio, it is much easier to make informed decisions and create unity about the best way to operate a fleet of batteries. The reason is simple – full visibility of data provides an evidence base for why decisions are made.

Take, for example, operators working across five sites managing a matrix of 15-20 relationships. In this scenario, data is everything. Battery optimisers will likely be looking at the trading and state of the market, whereas owners will be more focused on keeping the battery at an optimal temperature and capacity to increase its longevity.

Through access to timely and accurate data, ultimate decision-making can be reliably grounded on insight-driven discussion. Being able to demonstrate trends between sites, or how a battery is being traded in the market in real time, as opposed to monthly or weekly, creates a compelling case for stakeholders to align in their goals for the battery.

By having a comprehensive understanding of the state of the market, grid demand and stability, as well as the optimal conditions for generation, batteries can be charged and discharged in under a second to deliver marginal gains.

In addition to that greater visibility, data can also streamline the usage of battery thereby optimising revenue whilst simultaneously lengthening its lifespan. That is what is colloquially known as a ‘win-win’.

AI integration

While some will have concerns around AI integration into battery operations, in practice the introduction of smart software is not intended to, and cannot, replace the human workforce. Maximising existing battery performance boils down to following best practise and is reliant on data, people and systems working together in tandem.

For instance, managerial teams manually collecting data on battery efficiency from multiple sites can be a very labour-intensive task. Although this can all be done remotely, it may require logging into several different software platforms in order to crunch the numbers of the past week’s charge and discharge cycles to compile it into a weekly report, taking up valuable time.

MORE AI EXCLUSIVES
Why the UK is struggling to power AI workloads at home
How photonics could give the UK a competitive AI advantage

Instead, SaaS data and systems allow the same teams to cover more assets. Battery operators can sit down at their desks on a morning and be presented with second-by-second (or failing that minute-by-minute) data that enables them to monitor Key Performance Metrics, and rapidly investigate any alarms or faults which may have occurred overnight – actioning any issues that require immediate attention and deferring those that do not.

Having access to the full picture is important because it enables battery operators to understand how they can increase efficiency gains and reduce wasted energy.

Data is already recognised as a hugely important part of the energy industry, but this does not mean that it is always fully understood or used as effectively as it could be. Those that do use data effectively can gain a significant advantage given that there is not typically much difference between different types of battery hardware.

Battery owners and operators should not overlook the numbers in front of them, which could already be the answer to a number of financial, operational, and compliance quandaries with which they are grappling.

Thomas Hitch is business development manager at iON+