Technical due diligence (TDD) for battery storage and grid infrastructure
Technical due diligence battery storage: independent analysis of all technical aspects of storage and grid infrastructure as a basis for your investment.
Energy storage and grid infrastructure are central building blocks of the smart grid of the future. They are demanding and capital-intensive. A sound technical due diligence (TDD) assesses opportunities and risks objectively and safeguards your investment. We analyse all technical project aspects in a structured and independent way, from concept through implementation to operation.
A technical due diligence is used above all for financing, acquisition or taking a stake. It does not replace planning but independently checks whether the technology, contracts and cost assumptions of a project are viable. In the technical due diligence for battery storage, the storage technology is the focus: the cell chemistry and system design, the efficiency over a full charge and discharge cycle and the expected ageing are decisive, since usable capacity decreases with use. Whether and how the nominal capacity is maintained over the operating life has a direct effect on revenues. The operating concept is part of this too, because peak shaving, load shifting or self-consumption optimisation put different strain on the number of cycles. The results feed into a risk overview on which investment decisions can be based.
The grid connection includes checking the grid and regulatory requirements. In the technical due diligence for a battery storage system, the focus is on the grid access contract with the grid operator, the temporary and final operating permit and the proof that the technical requirements for generation plants are met. The grid operator can set requirements for active and reactive power that the storage system must be able to implement. The validity of the grid connection offer and the deadlines for implementation and commissioning follow from the specific offer, the contract and the applicable grid rules. Official procedures remain a risk for the schedule. The metering concept is also part of this, because it must fit grid charges and guarantees of origin.
The permitting situation is part of the document review: authorisation decisions, building permits and fire protection must match the system. Fire protection covers distances, access, fire-water supply, fire alarm system, gas detection and ventilation, as well as a fire protection plan with an emergency concept, because lithium-ion cells can release gases in thermal runaway. UL 9540A can be used as a test method for assessing thermal runaway; the fire protection requirements follow from the applicable law and the project conditions. Additional requirements for fire protection organisation and minimum distances, for example when installed next to transformer stations, ground-mounted PV or wind turbines, must be checked against the regulations in force and the rules specifically applicable, which may be relevant for hybrid sites as well as for operating costs and contracts. We summarise risks and costs clearly and set strengths against weaknesses. We assess the costs in the investment and operating cost plan, and funding is covered by the handling of the funding application. The grid side is already developed in the grid concept. We also carry out a technical due diligence for wind projects.
