Technology & Cost Modeling
Explore the engineering physics and software algorithms that drive the OPTIMUS platform, from nonlinear cell degradation to MILP dispatch engines.
The Technical Foundations of BESS Modeling
Accurate battery storage modeling requires deep integration of engineering physics and software algorithms. Cell-level degradation—driven by cycling, calendar aging, and temperature—directly impacts project economics over a 15-20 year asset life. Chemistry choice (LFP vs. NMC) affects energy density, cycle life, and cost structure. Dispatch optimization algorithms must balance revenue maximization against degradation costs, often using mixed-integer linear programming (MILP) to solve for optimal hourly bidding strategies across energy and ancillary service markets.
Our technology deep-dives cover battery chemistry comparison, degradation modeling approaches, dispatch optimization algorithms, grid congestion modeling, and duration economics. Understanding these technical foundations is essential for developers selecting equipment, lenders assessing technology risk, and operators optimizing long-term performance. The OPTIMUS platform embeds these models to produce investment-grade projections that capture the physical reality of battery behavior under real market conditions.
Browse the technical topics below for detailed guides on each area.
Performance Modeling
Battery Degradation Modeling
Understanding calendar and cycle degradation for energy storage assets and how operating strategies impact lifespan.
Battery Round-Trip Efficiency (RTE)
Round-trip efficiency (RTE) measures the percentage of energy that a battery storage system can discharge relative to the energy it consumed during charging. In the context of utility-scale BESS, RTE is not a static number—it degrades over the lifespan of the project and fluctuates based on auxiliary loads (e.g., HVAC cooling systems, inverter losses, and step-up transformer inefficiencies). OPTIMUS models the nonlinear impact of ambient temperature and C-rate on RTE. Understanding real-world RTE is critical because every megawatt-hour lost to heat represents an immediate reduction in arbitrage margins, especially when charging from the grid during high-priced intervals.
Hybrid System Design
PV DC/AC Ratio Optimization
In solar-plus-storage (hybrid) projects, the DC-to-AC ratio (inverter loading ratio) is one of the most consequential design decisions. A high DC/AC ratio (e.g., 1.4 or 1.5) means the solar array produces significantly more DC power during peak hours than the inverter can convert to AC grid power. Without a battery, this excess energy is 'clipped' and lost forever. OPTIMUS models DC-coupled architectures to precisely capture this clipped energy, storing it in the BESS and discharging it during the lucrative evening ramp. We optimize this ratio to maximize Investment Tax Credit (ITC) utilization while minimizing BOS (Balance of System) costs.
Inverter Clipping and DC Recapture
Utility-scale solar farms frequently overbuild their DC array relative to the AC inverter capacity to ensure maximum output during shoulder hours and cloudy days. This results in 'clipping' during peak irradiance—lost zero-carbon energy. In a DC-coupled hybrid system, OPTIMUS calculates the exact volume of this clipped energy and dynamically routes it into the battery system before it reaches the inverter. This strategy effectively creates 'free' energy for the BESS to discharge later in the day, drastically improving the project's overall Levelized Cost of Energy (LCOE) and boosting Investment Tax Credit (ITC) eligibility.