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

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

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7 min read

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:

RiskExamplesMitigation
Raw Material VolatilityLithium, nickel, cobalt shortagesUse suppliers with diverse, traceable sourcing and recycling pathways
Geopolitical RisksTrade restrictions, export bansSecure vendors with multi-region manufacturing and tariff contingency plans
Single Supplier DependenceCritical component bottlenecksQualify multiple vendors, prioritize vertically integrated suppliers
Poor TraceabilityUnknown component originsRequire full audit trails and digital traceability systems
Ethical/ESG ComplianceLabor abuse, environmental harmEnforce 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:

Project PhaseQAQC Action
Pre-contractDefine safety and performance standards (IEC, UL, ISO) in contracts
Pre-productionPerform factory audits of cell and system suppliers
During productionImplement inline production monitoring (IPM) for key components
Pre-shipmentWitness Factory Acceptance Tests (FAT) to confirm performance
Post-shipmentConduct 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.

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