What is a battery optimizer?

A battery optimizer is a software or control system that helps maximize the profitability of a Battery Energy Storage System (BESS) by determining the best times to charge, discharge, and trade energy. The optimization is usually driven by algorithms making use of real-time data such as electricity prices, grid demand, and weather forecasts.

Besides maximizing profitability, optimizers usually take care of market access and financial reporting on behalf of their clients and are responsible for monitoring the health and performance of the battery, managing charging cycles to extend battery life and reduce degradation; this is important for ensuring the long-term efficiency and durability of the battery system.

The KYOS Battery Index

The KYOS Battery Index serves as a benchmark for battery optimizers. It shows the average daily revenue in the past months when trading a 2-hour battery in the intraday market across several European countries, including passive imbalance trading with 30% of the capacity for the Netherlands, Belgium and the UK. KYOS updates its index with quarterly frequency along with its Energy Storage Report. See more at https://www.kyos.com/energy-storage-report/