Based on the monitoring and analytics of the TWAICE software, insurance giant Munich Re has delivered a performance warranty insurance for lithium-ion batteries for the first time. The solution is already in place for stationary storage provider Smart Power.
Energy storage systems are playing an increasingly important role in the energy transition. With a storage capacity of several megawatt hours, lithium-ion batteries store renewable energy that can be fed into the grid when needed. Utility companies, for example, use them to keep their grids stable. But storage systems are expensive, and their costs only amortize after several years. Purchasers and operators are thus keen to protect themselves against downtimes.
The TWAICE software gives users the transparency they need to predict the lifetime of their battery storage systems. The analytics software continually evaluates the batteries’ actual condition to gain valuable data on the performance and remaining life of the entire system. TWAICE does this by generating a digital twin of every battery system during operation, which provides accurate lifetime predictions about the respective system at any time. Complemented by artificial intelligence and battery models, precise diagnoses and prognoses are made.
Batteries can be maintained or repaired individually as and when required, which means the user does not need to wait until a downtime occurs before reacting. Time and money are saved; in the case of an untimely degradation of the system, the operational parameters can be adapted, and the lifetime of the batteries increased by up to 30% with only modest costs and structural work.
TWAICE’s comprehensive battery monitoring and optimization forms the basis of the world’s first insurance policy for Li-ion batteries. The analytics software assesses the battery’s current condition and enables predictions on its performance and remaining lifetime, thereby optimizing the operating strategy. Munich Re can thus offer an enhanced performance warranty insurance for the entire storage system, from which operators derive much greater value than current customary manufacturer warranties.
The Munich Re insurance policy covers repair and maintenance of battery storage systems and can be extended to cover lost revenue from downtime. Moreover, the customer is protected against insolvency and non-payment on the battery supplier’s side. Until now, warranty periods for individual components have ranged from two to ten years. To claim for damages against a supplier, it is essential to know exactly how the storage system has been used so far. “With Munich Re we have gained a partner who complements our product portfolio perfectly while giving the customer a sustainable financial advantage,” explained TWAICE managing director Dr. Stephan Rohr.
Dr. Sebastian Scholz, Product Lead Energy Storage at Munich Re Green Tech Solutions added: “We are delighted that we could develop this solution jointly with TWAICE. Here, we offer a tailored holistic concept comprising optimized battery use and comprehensive insurance of the system.”
The joint product is already being used by project developer Smart Power. TWAICE has access to detailed data on the numerous Smart Power storage systems in the field; in total nearly 30 MWh battery capacity is being continually monitored. Through this differentiated evaluation of real data in various systems, the new software could be reliably validated and continuously improved. Smart Power offers its customers stationary battery storage systems with multiple MWh storage capacity and maintenance over the total runtime. With Munich Re and TWAICE, financial expenses can now be significantly reduced, and unplanned downtime prevented.
TWAICE provides predictive analytics software that optimizes the development and operation of lithium-ion batteries. TWAICE’s core technology is the digital twin – a software that combines deep battery knowledge and artificial intelligence to determine the condition and predict aging and performance of batteries. This makes complex battery systems more transparent, effective and reliable. As the leading battery analytics software for global players in the mobility and energy sectors, TWAICE is committed to increasing the lifetime, efficiency and sustainability of the products that power the economy of tomorrow.