The document discusses how to future-proof energy storage investments given the short track record and uncertain market revenues for energy storage systems (ESS). It recommends: (1) employing a flexible control architecture like a PC-based system to enable repurposing assets and stacking revenues; (2) designing for flexibility through inverter-based augmentation and technology-neutral components; and (3) tracking ongoing plant operation with a flexible warranty and analytics to optimize performance over time. Future-proofing investments with a flexible system is necessary to avoid stranded assets and achieve optimal results regardless of changes to technologies or revenue streams.

1. Future-proofing energy storage
investments
by Loïc CHARMOILLE, Greensmith/Wärtsilä (France)

2. How can we prepare for the future?
Future-proofing is the process of anticipating the
future and developing methods of minimizing the
effects of shocks and stresses of future events

3. How can we prepare for the future?
“All our knowledge is about the past, but all our strategic decisions
are about the future”
What we know
we don’t know
What we know
What we don’t know
we don’t know
about the future

4. How can we prepare for the future?

5. How can we prepare for the future?

6. Why Future Proof ?
Track record of ESS is short Market revenues are uncertain
• Many storage revenues are paid via
short-term contracts / merchant
markets
• In 2017 PJM changed Reg D signal,
doubling intensity of signal
PJM's 2017 signal change increased ESS energy
throughput by over 50% and changed the
energy neutrality condition from 15 minutes to
30 minutes
-100
-50
0
50
100
RatedPowerOutput(%)
AGC Signal - Before PJM AGC Signal - After

7. How to Future Proof ?
PC-based architecture enables:
• Repurposing of existing ESS assets
• Revenue stacking and multiple operations
• Flexible battery augmentation plans
1. Employ a flexible architecture
Control architecture : PLC-based or PC-based

8. How to Future Proof ?
2. Design for flexibility
Inverter based
augmentation
Technology neutral
Original Installation Inverter-based augmentation

9. How to Future Proof ?
Battery warranties are complex
•Annual energy throughput
•Peak DC charge/discharge rate
•Daily average DC charge/discharge rate
•Average daily temperature
•Maximum temperature
•Common mode noise level (voltage)
•Common mode noise level (current)
3. Track ongoing operation with flexible warranty
BMS does not track à EMS shall
track all values and provides
analytics for on-going plant
optimization

10. Conclusion on Future Proofing
Think ahead, be competitive,
De-risk your investment
#Future-proof
• Success for energy storage developers and
investors is only possible if investments are
future-proofed
• Revenue stream designs are uncertain, so
a flexible system is necessary to be
confident that the revenue streams are
attainable and avoiding being left with
stranded assets
• Regardless of the changes that come to
battery storage technology or energy
storage market revenue, flexible systems
will allow you to achieve optimal results

11. Thank you
by Loïc CHARMOILLE, Greensmith/Wärtsilä
Proposal Manager Africa
loic.charmoille@wartsila.com