Hero

Building safer, smarter BESS projects: How to manage risk from factory to field

Florian Heise
LinkedIn icon
July 16, 2025
7 min
Energy Storage

As battery energy storage systems (BESS) scale globally to support the clean energy transition, the spotlight is increasingly shifting toward quality, safety, and resilience. Much like the evolution of the PV industry, where quality control became a defining factor for project bankability, the same is now true for BESS.

But here’s the catch: battery storage is more complex — involving chemistry, electronics, software, and logistics. And that complexity makes robust QAQC (Quality Assurance and Quality Control) and supply chain risk mitigation absolutely essential, from procurement to commissioning.

In this blog, we outline how developers, investors, and integrators can take a proactive approach to managing BESS supply chain and manufacturing risks, safeguarding both project outcomes and long-term sustainability.

Why It Matters: The Risk Is Real, and So Is the Scale

The global BESS market is growing rapidly, with demand driven by the need for flexible grid support, renewable integration, and clean backup power. But this expansion brings challenges:

  • Geopolitical volatility threatens supply chains.
  • Technological innovation outpaces safety standards.
  • Manufacturing concentration raises dependency risks.
  • Inadequate quality control leads to real-world failures — like the rainwater-triggered fire at Moss Landing’s Elkhorn facility in 2022.

As storage becomes mission-critical infrastructure, projects cannot afford unexpected downtime, safety failures, or equipment underperformance.

A Zero-Risk Mindset: Mapping Supply Chain Vulnerabilities

To navigate this complexity, project developers must look beyond just technical specs and cost per kWh. They need a risk-based supplier evaluation framework — one that considers origin, ethics, and operational reliability.

Key Risk Categories & Mitigation Tactics:

Risk Table
Risk Examples Mitigation
Raw Material Volatility Lithium, nickel, cobalt shortages Use suppliers with diverse, traceable sourcing and recycling pathways
Geopolitical Risks Trade restrictions, export bans Secure vendors with multi-region manufacturing and tariff contingency plans
Single Supplier Dependence Critical component bottlenecks Qualify multiple vendors, prioritize vertically integrated suppliers
Poor Traceability Unknown component origins Require full audit trails and digital traceability systems
Ethical/ESG Compliance Labor abuse, environmental harm Enforce ESG audits, align with laws like the EU Battery Regulation or UFLPA

From Factory to Field: A QAQC Framework for BESS Success

Building quality into your BESS project starts long before the battery is delivered. A strong QAQC framework includes:

QAQC Table
Project Phase QAQC Action
Pre–contract Define safety and performance standards (IEC, UL, ISO) in contracts
Pre–production Perform factory audits of cell and system suppliers
During production Implement inline production monitoring (IPM) for key components
Pre–shipment Witness Factory Acceptance Tests (FAT) to confirm performance
Post–shipment Conduct on-site inspections and supervise commissioning

At each stage, independent inspection and documentation are key. And while system-level testing is becoming more common, access to battery cell manufacturing lines remains a major gap, often due to IP protection and limited supplier transparency.

Why Cell-Level Risk Is the Hidden Threat

Data from 11 global manufacturers (2024) shows that nearly 50% of all BESS issues originate at the battery cell level — often due to:

  • Poor warehouse/storage conditions
  • Non-compliance with SOPs
  • Incomplete incoming quality checks
  • Missing certifications/documentation

These findings are concerning, given that cell-level defects can lead to thermal events, performance losses, or warranty voiding. The lesson: QAQC must go deep, even when access is difficult.

What Factory Inspections Reveal

Audits of enclosure assembly and system integration lines uncovered:

  • Assembly defects due to inconsistent SOP application
  • Untrained operators in critical steps like BMS wiring
  • Fire suppression system faults from low-quality valves/fans
  • Water ingress risks, such as those that caused the Moss Landing incident

Traceability: Not a Buzzword, But a Bankability Requirement

With the EU Digital Battery Passport on the horizon, traceability will soon be enforceable not just preferred. Developers should:

  • Prioritise traceability for high-impact components (e.g., cells, BMS)
  • Use both digital tools and on-site audits
  • Set clear supplier expectations and penalties for non-compliance
  • Collaborate to raise transparency standards across the chain

Key Guidelines for Developers and Investors

  1. Demand Transparency: Go beyond brand reputation. Ask for manufacturing data, certifications, ESG audits, and historical performance.
  2. Negotiate Access: Push for pre-production audits and FAT witnessing. If denied, escalate or reconsider vendor selection.
  3. Prioritise Vertical Integration: Suppliers that make both cells and systems can offer tighter quality control and better issue resolution.
  4. Verify Performance, Don’t Assume It: Always test for actual function — not just nameplate specs. Use third parties when needed.
  5. Don’t Ignore ESG: Regulatory pressure and investor scrutiny around sustainability are rising. Be prepared.

Conclusion: A Quality-Centric Future for Energy Storage

Just as the solar industry matured through standardisation and third-party inspection, the battery storage sector must now do the same. And while access challenges remain — especially at the cell level — the cost of not acting is far greater: failed systems, fire risk, lost revenue, and reputational damage.

The path forward is clear: early and continuous QAQC, proactive risk mitigation, and a shift from price-driven to performance- and ethics-driven procurement.

Only then can BESS truly deliver on its promise: to power a safe, sustainable, and reliable energy future.

At Re-Twin Energy, we help storage developers, investors, and EPCs derisk projects from the ground up — with digital twin technology, supplier scoring, and data-driven QAQC support. Discover how we help ensure quality, safety, and bankability from cell to site at re-twin.energy.

About The Author

Florian Heise
Florian Heise
LinkedIn icon

Florian Heise is an energy-industry specialist with experience in consulting, logistics tech, and green-hydrogen development. As former head of strategic projects, he researched BESS and energy-storage markets across Germany and the EU. Today, he uses that knowledge as co-founder of Re-Twin Energy. Florian holds a Master’s in Finance & Accounting from Freie Universität Berlin and has even run a small coffee-import venture.

Ready To Make Smarter Energy Storage Investment Decisions?

Talk to our team. We'll walk you through a live analysis of a real asset in under 30 minutes.

Answers to your questions

How to describe Re-Twin Energy in one sentence?

Re-Twin is your AI-powered digital energy analyst for evaluating, simulating, and optimizing risk vs. return for battery assets.

What is Re-Twin Energy's platform?

Re-Twin is a one-stop SaaS platform with three tools: Data & Insights, Investment Analysis, and Live Benchmarking. Built to make battery storage decisions faster, smarter, and more profitable.

What makes Re-Twin Energy a one-stop-shop?

We support the full asset lifecycle from planning to operation with scenario analysis, trading simulations, and performance benchmarking. Re-Twin answers key questions like:

- Which markets should my battery target?
- How do I balance returns and asset health?
- What profit can I expect from different strategies?

What is a digital twin?

A digital twin is a 1:1 virtual copy of your battery asset (real or planned). It mirrors all changes of your set-up, helping you optimize performance and strategy without risk.

Who can benefit from the Re-Twin Energy platform?

Stakeholders in energy storage (developers, asset owners, and financiers), especially in the battery storage space, use Re-Twin for project planning, strategy testing, and operational performance benchmarking.

What energy storage systems are included?

We focus on battery energy storage systems (BESS), including stand-alone assets and co-located setups like BESS+PV, BESS+Wind, and BESS+Own Consumption.

What does the Investment Analysis module do?

It assesses project viability and profitability using historical and forecast data, helping users explore different asset configurations and market strategies before making investment decisions.

What is Live Benchmarking?

Live Benchmarking is a new performance measuring concept, that shines where generic indices fail to capture your assets unique set-up. It’s a live trading simulator where users test and improve strategies in a risk-free environment to balance returns, risks, and asset degradation. Results act as benchmarks for your trader or asset against real outcomes. This can further be applied to validate assumptions and provide third-party verification.

What type of data does Re-Twin Energy deliver?

Re-Twin provides historical market data and long-term forecast market data (based on FFE & MAON), trading simulations, market-specific revenue projections, cashflows and scenario results tailored to your asset. This data also incorporates degradation, based on your inputs. Project specific parameters can be set to tailor the output.

The Re-Twin Optimizer itself is trained on various data sources incl. price data for spot & ancillary markets from different countries, weather and much more. This means we are also able to generate a PV Generation Profile based on your chosen location.

In which format is the data downloadable?

Data and results can be exported in CSV, Excel, or PDF formats (based on your use case and plan). Downloads are in 1 hour granularity, PRO users get the additional option to download in 15 min granularity.

For which countries is the platform available?

The platform currently supports Germany, Belgium, Austria, Netherlands and Spain with expansion to other European markets underway. Interested in bringing Re-Twin to your country? Get in touch! We are always looking for pilot partner’s to expand to new countries.

How do I get started?

Sign up with a free account to explore the platform and test its capabilities with 2 free runs in Investment Analysis and a free trial in Live Benchmarking. Reach out via our website or info@re-twin.energy for any questions, custom demos and subscription possibilities.

Is training available?

Yes, we offer onboarding and continuous user support to help you get the most out of the platform.

How secure is the platform?

The platform is hosted on Microsoft Azure, using its full suite of security tools. It follows GDPR and industry best practices with full encryption and access protection.

Why choose Re-Twin Energy?

Re-Twin unites AI, deep energy expertise, and a user-friendly design to deliver faster insights, smarter strategies, and better financial outcomes in one solution.