Making Battery Degradation Measurable: Why Cost-Aware Operation Is Essential

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As renewable energy becomes increasingly vital for global electricity systems, stationary battery storage, particularly lithium-ion batteries, plays a crucial role in enhancing grid reliability and supporting decarbonization. However, current operational strategies for these battery energy storage systems (BESSs) often prioritize short-term revenue over long-term sustainability, leading to potential degradation issues that can significantly reduce their economic and technical value over time.

To address this challenge, the article suggests implementing a degradation cost function that quantifies battery degradation in monetary terms, allowing operators to weigh short-term gains against long-term impacts. By integrating this cost function into optimization processes, operators can improve system performance, reduce maintenance costs, and enhance investment profitability. Ultimately, making battery degradation measurable and actionable is essential for the sustainable deployment of energy storage systems, ensuring they contribute effectively to future energy stability.