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Warranties for Battery Energy Storage Systems in Developing Countries (English)

In developing countries, battery storage is becoming a viable way to increase system flexibility and enable more integration of variable renewable energy. Battery energy storage systems (BESS) respond rapidly to control signals, are easy to deploy, and are benefiting from cost reduction trends. New battery technologies have valuable attributes that are well suited to the needs of developing countries. However, they have a rather short track record in terms of deployment and operation, and this can hamper efforts to reassure buyers and investors that these new technologies will perform reliably over their project life. Conditions found in some developing countries may present extra challenges as energy storage systems need to operate in harsh climate conditions, often in remote locations with limited data access. Warranties for BESS provide mechanisms for buyers and investors to mitigate the technical and operational risks of battery projects, by transferring the risk of a manufacturing defect or performance issues to the manufacturer or the battery vendor. Warranties are used in the same way for traditional generation technologies, such as solar photovoltaic (PV) and wind.

Details

  • Document Date

    2020/08/01

  • Document Type

    Working Paper

  • Report Number

    153065

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2020/09/15

  • Disclosure Status

    Disclosed

  • Doc Name

    Warranties for Battery Energy Storage Systems in Developing Countries

  • Keywords

    solar photovoltaic power plant; remote location; energy storage; best practice guide; battery technology; new technology; performance level; high ambient temperature; distribution of responsibility; energy for all; rate of degradation; breach of warranty; changes in regulation; scope of service; currency exchange rate; effect of transfer; maintenance and repair; analytical and advisory; peer review process; energy management system; available energy capacity; electrical energy storage; local environmental condition; removal of equipment; sustainable energy; battery storage; local condition; response time; equipment cost; minimum requirement; battery manufacturer; warranty claim; storage system; grid connection; degradation rates; operational limits; discharge rate; battery replacement; round trip; operational factor; degradation coefficient; heat output; replacement cost; first year; procurement process; battery energy; overall cost; perceived risk; power conversion; other asset; international cooperation; battery system; liquid cooling; replacement parts; extreme temperature; chemical process; global partnership; data transfer; insurance solutions; market rule; kilowatt hour; grid supply; technology provider; power quality; legal professional; surge protection; air temperature; inflation rate; authorized personnel; cost structure; insurance product; grid application; physical characteristic; operational parameter; power rating; regulatory change; integrated system; minimum level; shipping charge; monitor performance; supply agreement; data gaps; business continuity; service contract; frequency response; industry estimates; test equipment; financial strength; external impacts; capital expenditure; verbal promise; written contract; business model; limited coverage; internet connectivity; available capacity; chemical reaction; Boosting Growth; guarantee system; insurance companies; climatic condition; energy transition; performance metrics; noncommercial purposes; electric vehicle; Energy Sector; subsidiary right; climate condition; informational interview; operational risk; production editor; production credit; written permission; preventive maintenance; performance issues; traditional generation

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Citation

Warranties for Battery Energy Storage Systems in Developing Countries (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/339531600374280939/Warranties-for-Battery-Energy-Storage-Systems-in-Developing-Countries