Articles
MD Europe, Univers
The global Battery Energy Storage System (BESS) market is experiencing unprecedented growth. In 2023 alone, battery deployment in the power sector increased by more than 130% year-on-year, adding a total of 42 gigawatts (GW) to electricity systems worldwide. This surge is propelled by a remarkable decline in battery costs—over 90% since 2010 —alongside favorable regulations and the pressing need to integrate renewable energy sources. World leaders attending COP29 next month have been encouraged to sign a pledge to collectively increase global energy storage capacity to 1,500GW by 2030.
Yet, beneath this rapid expansion lies a critical challenge: ensuring long-term profitability and operational integrity. Central to this is the often-overlooked metric—State of Health (SoH) of battery systems or any SOX (State of Everything).
The Silent Metric That Can Make or Break a Site
SoH measures a battery’s performance capacity relative to its original state. It’s a pivotal indicator that influences investment decisions, safety protocols, and revenue strategies. However, its management is frequently inconsistent, leading to unforeseen operational and financial setbacks.
Consider the case of a UK-listed BESS fund. As of January 2024, the fund’s share price was trading at a 45.1% discount to its Net Asset Value (NAV), highlighting investor concerns over asset performance and profitability.
Safety incidents further underscore the importance of diligent SoH monitoring. In January 2024, Phoenix, Arizona, reported 72 fires where lithium-ion batteries were identified at the origin, emphasizing the risks associated with inadequate battery health management.
SoH is more than a technical reading—it’s the foundation for smart trading, efficient asset management, and safe operations. Yet today, it’s under-measured, poorly understood, and inconsistently tracked.
Three Roles. One Problem.
Across all roles, the challenge is the same: no clear, consistent view of SoH.
AI: Turning Battery Data into Business Intelligence
AI flips the script by delivering precision insights—at speed and at scale.
The Bottom Line
As the BESS market continues growing, effective management of battery health becomes paramount. AI-powered solutions offer a pathway to enhanced profitability, safety, and operational efficiency. In an industry where margins are tightening and expectations are escalating, embracing advanced analytics for SoH management is not just advantageous—it’s essential for sustainable success.
Let’s Talk Batteries at SmarterE Europe
I’ll be at SmarterE Europe tradeshow from May 7–9, 2025 at ICM München in Munich. If you’re exploring how AI can unlock new value from your BESS assets—or just want to exchange views on the future of storage—drop me a message. Happy to connect!
