Planning a BESS Project: What You Need to Know

Why Planning is Critical to Long-Term Success

A central theme is timing: nearly all the operational issues that show up later (like performance drops or safety incidents) are rooted in decisions made during project development. As Camelot’s Shawn Shaw noted, “A seatbelt helps during a crash, but it’s better not to drive in a blizzard.” In other words: plan to avoid risk, not just to contain it.

Certain issues, like thermal events, availability drops, and integration challenges, should be tackled early, ideally before equipment procurement or construction.

What the Industry Is Saying: Highlights from the TWAICE BESS Pro Survey

Our latest industry survey of 83 BESS professionals revealed three key trends:

• Performance and availability are now viewed as the top challenge—more than safety, which used to dominate discussions.

• Technical issues are frequent, with about 50% of respondents reporting monthly problems.

• There’s a gap in digital readiness: only 55% are satisfied with their current software stack.

These findings reinforce the need for robust analytics and data-driven project planning.

The Case for Smarter Data Strategies

Energy storage is a data-rich environment — literally. One 100 MW/200 MWh system can generate up to 1 billion data points per day, dwarfing wind or solar.

Three best practices for developers turn this data into value:

• Establish common nomenclature and granularity (down to module or cell level)

• Define a logging methodology early in procurement

• Ensure the system can connect via API, secure FTP, or pull protocol

This free RFP template helps you get your data strategy right from the start.

Don't Sleep on the LTSA

Another important aspect is the Long-Term Service Agreement (LTSA). These contracts are often underestimated but play a huge role in defining the project’s lifecycle performance and cost. Key pitfalls to avoid include:

• Vague availability definitions

• Missing data rights for analysis

• Capacity testing during peak revenue windows

A well-negotiated LTSA is crucial for ensuring long-term project reliability, performance transparency, and financial predictability.

Revenue Stacking Done Right

Understanding the financial dynamics of energy storage is essential for successful project development. Evaluating “cost of revenue capture” (CRC) can be useful. This metric helps developers assess the marginal cost of earning from various services — energy arbitrage, frequency regulation, capacity markets, and more.

Modeling strategies include:

• Backcasting revenue from past years

• Forecasting using forward curves

• Stress testing based on regulatory or price shifts

Technology choice matters too: for example, LFP-based batteries often outperform NMC types in high-frequency applications due to better thermal stability and cycle life.

Siting, Permitting & Interconnection: Plan for the Long Haul

After laying the groundwork on economics and revenue modeling, practical development hurdles can often make or break BESS projects:

• Siting needs to be aligned with grid needs, revenue potential, and community engagement.

• Permitting can take 6–24 months and varies widely by jurisdiction. Fire safety and outdated zoning codes are common blockers.

• Interconnection is often the riskiest phase. Developers need to plan early, model rigorously, and maintain open communication with utilities and ISOs.

New Industry Expectations: Reporting and Compliance

In 2024, energy storage systems over 100 MW are expected to fall under new NERC reporting standards, similar to solar and wind. TWAICE is working to support these upcoming Generating Availability Data System reporting requirements with its analytics platform.

The Trend Toward Overbuilding

One question from the audience sparked discussion around overbuilding vs. augmentation. The consensus? Most developers prefer to overbuild upfront rather than plan for mid-life expansions. This reduces construction disruptions, avoids future site access complications, and simplifies LTSA terms.

‍

What’s Next?

You can watch the recording of the webinar here. This webinar is just the beginning. More are on the way, covering BESS financing, construction & commissioning, and operations & optimization. Sign up here!

‍

Curious to see what we do at TWAICE? Join our weekly live demos!