Enhancing renewable energy expansion with lower TCO for battery storage systems
The future depends on renewable energy, but that currently relies on a number of complex and often expensive technologies. So, what steps can we take to reduce costs to better enhance this expanding market?
The consensus among organizations, including the United Nations (UN), International Energy Agency (IEA), and International Renewable Energy Agency (IRENA) is clear – renewable energy, specifically solar and wind power, is fundamental to achieving future global sustainability.
In IRENA’s 1.5°C scenario, the total global renewable power generation capacity must triple by 2030, surpassing 11,000GW. This will require solar and wind power to account for 90% of the new additions [1].
However, despite the numerous advantages of wind and photovoltaic (PV) power generation over other environmentally harmful alternatives, they do present a series of challenges that can compromise their effectiveness if left unaddressed. Unlike gas, coal or nuclear power generation, a renewable solution’s output is variable and governed solely by local weather conditions.
The intermittent nature of renewable energy sources like wind and solar necessitates the presence of Battery Energy Storage Systems (BESS) to ensure their efficacy. As a result, the cost-effectiveness of BESS solutions, and by extension the safety and reliability of grid-scale installations, have become crucial factors that determine the success of renewable energy.
The role of battery energy storage systems
From small-scale residential installations to large-scale grid projects, BESS plays a crucial role by providing the necessary functionality to support the generation of renewable energy.
Grid Stability
When renewable energy sources like solar and wind are combined with BESS, energy generation fluctuations can be counteracted, leading to a reliable power supply akin to that of conventional power stations.
The functionality of BESS for renewable energy production encompasses both load leveling and peak shaving. Load leveling is the process of storing energy when demand is low and then releasing it when demand is high. Peak shaving refers to the practice of reducing power consumption during periods of high demand and peak demand charges. These capabilities have the potential to result in cost reductions, reduced reliance on backup non-renewable power generation and enhanced efficiency within the power grid while reducing outages associated with intermittent renewable energy sources.
Support for microgrids and independent energy
Microgrids, which have the capability to operate independently from the main grid, offering homes and businesses the ability to oversee their own power generation, enhance electricity accessibility, and play a pivotal role in the expansion of renewable energy infrastructure. According to the International Energy Agency (IEA) in 2018, the global population lacking electricity access stands at around 860 million individuals [2]. Out of that total, over 87% reside in remote or rural regions. Microgrids present a feasible answer to the issues of energy accessibility in areas lacking connection to the primary power grid, where the expansion of the conventional grid incurs higher expenses.
The utilization of BESS is imperative for the efficient operation of microgrids. Within a microgrid system, BESS can supplement power during periods of inadequate electricity generation from local renewable sources, ensuring a dependable power provision.
The IEA emphasizes the importance of microgrids in achieving the energy access and renewable energy goals outlined in the Paris Agreement [3]. Microgrid operations are also critical for meeting the UN’s Sustainable Development Goals (SDG), which aim to ensure affordable and clean energy for all [4].
Ensuring the mass availability of BESS
As the global community rallies to fulfill ambitious renewable energy targets set for 2030, the significance of battery energy storage systems (BESS) cannot be overstated. Across continents, nations are propelled by legislative mandates such as Europe’s REPowerEU plan and the US Inflation Reduction Act, which earmark funding for renewable energy initiatives. In tandem, China’s concerted efforts in large-scale investments underscore the universal imperative of transitioning to sustainable energy sources.
But for renewable energy, microgrids, and BESS to succeed, the underlying technology must be high-performing, safe, and financially sustainable. It is essential, therefore, to prioritize solutions that offer good value in terms of Total Cost of Ownership (TCO), given the large-scale deployments required worldwide.
The TCO for BESS encompasses a spectrum of factors, spanning initial manufacturing expenses to long-term operational considerations. These cover a wide range of costs and factors, including production and installation expenses, and operational factors that affect reliability and safety, insurance costs, and maintenance expenses.
The battery cell is the core component of every BESS, and any advancements made in it have a significant impact on the entire system’s operations and lifespan. The optimization of monitoring, performance, and safety at the cellular level results in a chain of positive effects, improving the efficiency, reliability, durability, and profitability of the broader energy storage infrastructure.
Lowering TCO
Dukosi’s chip-on-cell technology is specifically designed to simplify battery design through a revolutionary new architecture, resulting in decreased total cost of ownership (TCO) at every stage, including cell manufacturing, battery pack creation, deployment, operation, and even sustainability considerations at end-of-life.
Dukosi’s innovative DK8102 Cell Monitor represents a scalable and market-ready solution for enhancing battery intelligence and sustainability. Ideally integrated into every battery cell during the manufacturing process, this technology enables real-time monitoring of cell voltage and temperature (Figure 1) from the moment it is first applied, even before the cell is installed into the final battery product.
Figure 1 – Dukosi DK8102 Cell Monitor and DK8202 System Hub integration (Source: Dukosi).
Equipped with a custom-designed Digital Signal Processor (DSP) and an embedded Arm® Cortex®-M CPU core, the DK8102 Cell Monitor ensures reliable contactless communication through Dukosi’s unique protocol, C-SynQ® to the DK8202 System Hub. This contactless communication not only simplifies scalability and bill of material component count, but it also promotes system reliability and longevity.
Increasing quality control
In a recently published report by CEA Insights on BESS Quality Risks 30% of defects were attributed to the cells. Identifying bad cells earlier more effectively minimizes the risk of including them in battery packs. Dukosi’s chip-on-cell technology is designed to be installed during cell manufacturing, surviving formation and testing to monitor and log internal cell characteristics from the start.
Building reliable battery packs for renewable energy
Typically, to connect each cell in a large battery pack to their respective module analog front end (AFE), a complex network of wiring harnesses and connectors is required, which is then connected to the main battery management system (BMS) processor. Dukosi’s contactless architecture instead utilizes near field technology to transmit cell data through a single bus antenna, eliminating the need for most wiring and connectors, resulting in lower costs and fewer potential failure points.
Dukosi chip-on-cell offers a solution for changing battery size or cell chemistries without expensive redesigns, allowing for per-cell adjustments to battery capacity and supporting multiple cell chemistries. This flexible solution reduces risk, increases scalability and provides essential supply chain flexibility in large deployments and longer projects.
Decreasing shipping costs and deployment risks
Grid-scale projects frequently transport pre-assembled battery containers (Figure 2). Although more convenient for manufacturing, shipping each container with thousands of cells to the site can lead to high transportation and insurance expenses.
Figure 2 – Battery Energy Storage System (Source: iStock).
Dukosi’s technology can monitor every cell in real-time, ensuring immediate detection of faulty cells and reducing the risk of deploying devices that have been damaged or subject to extreme conditions (i.e. high temperature) during transportation or storage.
Lowering long-term operating costs
The highest risk of battery fires occurs during deployment and the initial two years of use. Dukosi Cell Monitors provide the temperature of every cell to the BMS, unlike typical modular designs that only directly monitor a small subset of cells. The ability to detect and respond promptly to any abnormal temperature behavior greatly enhances the safety and reliability of each battery pack. Dukosi’s simple architecture also allows for easier maintenance compared to complex, wired solutions when a faulty cell is detected.
In today’s data-driven world, Dukosi plays a crucial role as the facilitator of information. By analyzing the data collected from thousands of Dukosi Cell Monitors during system operation, it is possible to improve operational intelligence by obtaining more accurate measurements of State of Health (SoH) and State of Charge (SoC). This, in turn, enables better utilization of the capacity of each single cell. Per-cell temperature monitoring, when combined with accurate voltage monitoring, is a crucial tool for developing intelligent and predictive maintenance strategies that can result in improved overall performance and operational uptime, which can significantly improve the asset utilization.
Tracking data for warranties and recycling efforts
Dukosi’s chip-on-cell technology tracks lifetime data, event logging, provenance information, and supply-chain data for each cell. This is critical for making warranty claims more efficient by determining the cell supplier and their adherence to specifications. Furthermore, at the end of its life cycle, the system’s materials information can potentially contribute to more effective recycling practices, supporting sustainability.
Capturing lifetime data, like that stored within Dukosi’s chip-on-cell technology, delivers a number of benefits and aligns with the EU’s forthcoming EU Battery Regulation. This regulation will mandate pack level battery Digital Product Passports (DPP) designed to help create a more circular economy and reduce the environmental impact of battery manufacturing. Recent research in preparation for the regulatory change has shown that battery level DPPs can result in significant savings across the battery value chain. These cost savings can range from 2 to 10% in terms of future procurement costs, including technical testing expenses, and between 10 to 20% for costs associated with pre-processing and recycling treatment, thanks to reduced sampling requirements. In addition, a more thorough recycling approach can contribute to fulfilling approximately 5-20% of the expected demand for active materials in electric vehicle batteries by 2045 in Europe8.
Conclusion
While renewable energy sources like solar and wind power are indispensable for future global sustainability, addressing their intermittent nature requires the deployment of BESS. However, the success of BESS relies not only on their functionality but also on their TCO. By giving attention to TCO, it is possible to make sure that solutions are both impactful and economically feasible over an extended period.
Dukosi’s innovative cell monitoring technology exemplifies this approach, offering enhanced reliability, lower costs, and greater sustainability throughout the battery life cycle. By prioritizing solutions that optimize TCO, we can accelerate the transition towards a cleaner, greener energy future while ensuring economic viability and scalability. Prioritizing technologies, like Dukosi’s chip-on-cell technology, is of utmost importance in order to maximize the impact of investments in renewable energy and achieve our sustainability goals with efficiency and effectiveness.
References
[1] https://www.irena.org/Digital-Report/Tripling-renewable-power-and-doubling-energy-efficiency-by-2030
[2] https://www.iea.org/reports/sustainable-recovery/electricity
[3] https://unfccc.int/process-and-meetings/the-paris-agreement
[4] https://sdgs.un.org/goals
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