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How to Size a Battery Energy Storage System

Battery sizing is not simply a question of how many MWh to buy. MW rating, discharge duration, cycle count, usable energy window and interconnection limits must be optimised together for the selected business case.

Published: 7 min readSTR Energy
1

Start with the use case

Peak shaving, energy arbitrage, backup and frequency services require different power-duration profiles. One battery may stack multiple value streams, but overlapping reserve requirements need explicit modelling.

2

Losses and degradation

Round-trip efficiency, auxiliary loads, temperature, depth of discharge and C-rate affect usable energy. As capacity fades over time, warranty conditions and augmentation scenarios belong in the financial model.

3

Time-series simulation

Test candidate kW and kWh ratings with charge-discharge simulations over at least a year of load, generation and price data. Monthly averages hide peak duration, so use the most granular reliable interval available.

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