The energy transition is progressing and innovative solutions are more in demand than ever. The Upside Group, a pioneer in the battery storage industry, plays a key role here. The company has been planning, building and operating high-performance battery storage systems for over a decade, focusing on flexibility and an innovative technology mix of lead and lithium storage systems. Prof. Rico Wojanowski, co-founder of the Upside Group and Professor of Environmental Logistics, will provide insights into the BMSmart cooperation project and explain the challenges facing the industry and the importance of intelligent storage solutions for a sustainable energy future.
You are a co-founder of the Upside Group, a company in the battery storage industry, and a professor of environmental logistics. How did you make your way from the field of logistics into the battery storage industry?
The road is not far. In logistics, it’s all about getting the right product to the right place at the right time — and the same goes for the energy industry, especially for battery storage systems. Here, tons of material, e.g. for lead storage systems, have to be moved on time in order to implement projects on schedule. Operating a battery storage system is also about being present in the right markets at the right time and storing electricity. In the normal understanding of the energy industry, there is no such storage system, as the simultaneity of generation and consumption is always considered. With the battery, we are introducing a new element or a new pillar into the energy industry, which includes precisely this storage and retrieval of energy as a component. And the whole thing comes very close to logistics.
What is the aim of the Upside Group?
The Upside Group was founded as a spin-off of a large solar company that recognized battery storage systems as the way of the future back in the early 2010s. Founded in 2010 as a three-person company, the focus from the outset was on solutions for the challenges of renewable energies. It was clear to us that it was not about installing as many solar systems as possible and hoping that this would work in the grid network. It also quickly became clear that battery storage systems do not yet enable seasonal storage, but are limited to short-term energy storage. The Upside Group has now been planning, financing, building and operating stationary battery storage systems with a capacity of several dozen megawatts of power and storage volume for 10 years.
How many megawatts do the Upside Group’s battery storage systems comprise, and how many were built using them?
In total, we have built over 80 megawatts ourselves over the years, most of which we have operated ourselves from the outset. Today, we manage a portfolio of over 100 megawatts with 160 megawatt hours of storage capacity.
Can you give us an overview of the importance of balancing power markets and where the Upside Group fits into this?
Control power markets are a very exciting product in the energy industry. They balance out the discrepancy between supply and demand in the electricity grid. This means that if demand increases more than forecast at one point, supply must be increased at another point. Of course, this always happens with a certain time delay. Even in the traditional energy industry with centralized generators and decentralized consumers, it was a challenge to maintain this balance. This is where the necessary control component comes into play.
Short-term demand is measured using the frequency in the grid: If it deviates from the standard value of 50 Hertz, there is an imbalance that needs to be compensated for. If there is too much energy in the grid, it must be reduced — an ideal application for battery storage systems. They are very efficient in short-term storage and react much faster than conventional power plants thanks to electronically controlled inverters. What used to be done by lignite-fired power plants is now done by battery storage systems.
The biggest advantage of battery storage is that it does not emit any CO2 and reuses used electricity, so to speak, which leads to measurable savings as coal, gas or oil are no longer necessary. The Upside Group was enthusiastic about this technology, which is why we entered the balancing power markets early on and were one of the first providers of battery storage systems. Balancing power comes in various forms and it is worth entering this market. With our experience in primary and secondary balancing power, our flexibility in multi-use and the continuous optimization of the batteries, we can switch applications every quarter of an hour and therefore see ourselves as a leading provider.
What added value do battery storage systems have for end consumers?
Battery storage systems have many applications that the end consumer notices indirectly, especially our large-scale storage systems in balancing power. They prevent imbalances in the grid, for example in the event of forecasting errors or failures of generators or transfer points, which manifest themselves as frequency fluctuations. Our storage facilities secure the supply and gradually replace combustion plants that are shut down. Every time a coal-fired power plant is shut down, battery storage systems have to become more active in order to guarantee security of supply. Battery storage systems also offer other advantages, such as reduced grid charges, as no new transformer is required for additional consumers, for example.
An important advantage for end consumers is the increase in self-consumption through their own battery storage, for example in the garage. This allows self-generated solar power to be used. In recent years, there has been a boom that began with large storage systems. Economies of scale have made batteries cheaper, so there is now a chance that competitive home storage systems can be offered.
As mentioned, the Upside Group is a leading provider of large-scale storage systems. The Upside Group includes both lead storage systems and lithium storage systems. Why are you focusing on both technologies and not just one of them?
For us, it is important that a technology is reliable and robust and works well in a large storage system for many years. Lithium and lead technologies have proven to be the best options. It is crucial to know the advantages and disadvantages of the technologies and to use them correctly in the respective market situation. That’s why we are focusing on a mix of technologies at an early stage and operating both lead storage and lithium storage in a virtual power plant. This optimizes the advantages of both technologies and enables flexible adaptation to market conditions. The right mix is crucial, as the energy markets are too dynamic to focus on just one technology. Both lead and lithium storage continue to have their place and contribute to the optimization and pricing of our pool.
How did the Upside Group come to NOVUM, what goals did the BMSmart project pursue and how were these achieved and implemented?
With lithium storage batteries in particular, it is challenging to determine exactly what is happening inside the cell. It is crucial to monitor temperatures, voltage windows and decalibration to avoid deviation of cell voltages. So we asked ourselves the question: What happens inside a lithium cell? This question was particularly relevant for our first lithium storage system, as it was a long-term investment. Ten years ago, access to relevant measured values such as voltage and temperature was not yet a matter of course for many battery management systems (BMS).
We came across NOVUM through our long-standing sales partner LEAG. They were facing similar challenges and investment decisions to us. Together we are active in the BMSmart research project. NOVUM offers comprehensive battery analysis and is the right cooperation partner to clarify our questions.
In addition to LEAG, Upside Group and NOVUM, we have also brought TU Dresden on board for the BMSmart project. This is particularly valuable as it investigates how a cell interacts in 10,000 repetitions. Up to now, upscaling has been considered in a very general way, although the interaction between battery modules and cells is crucial. A defective cell can affect the entire system. The aim of the project is to isolate, treat and heal these cells. We need to understand the interaction of the cells in order to monitor the condition of the batteries, especially at the Dresden site, where a 12-megawatt battery storage system is being implemented.
Thanks to the collaboration with NOVUM, we were able to clarify many questions and gain important insights. We have learned how the battery as a storage system consists of individual elements and how these elements influence each other. One example is SOC management (State of Charge), the exact determination of which is complicated in lithium batteries. The SOC value shows the state of charge of a battery and is often estimated. It depends on various conditions — e.g. is the battery cold or warm, has it been previously treated and what state of health, i.e. SOH value (State of Health) it has. In order to determine the exact condition of the battery, it is necessary to precisely determine the SOC, for example using impedance spectroscopy and AI-supported analyses of large amounts of data. NOVUM is a leader in this field and has supported us optimally with its knowledge and experience.
Where do you see the greatest advantage of NOVUM technology, and what do you think it is important for today and in the future?
If we know the condition of the cell better, we can treat it more gently. It is crucial to know how much energy can be charged into the battery and how much can be withdrawn without impairing performance. This applies to both large-scale battery storage systems and domestic storage systems. It must also be ensured that no defective lithium cell goes unnoticed in order to avoid fires. It is therefore necessary to act with foresight, in the sense of “predictive maintenance” to know how the cell will behave and when a technician is needed to replace defective cells, modules or stacks. This is exactly what NOVUM’s technology makes possible.
In summary, it is important to consider the future aspect. Our functional team should continue to work together to make the most of the project’s great potential — both in battery technology and in our optimization strategies. We are currently on a development curve, similar to the solar industry 20 years ago, and are at a point where we are increasingly being recognized. The understanding of battery storage is there to drive the energy industry forward as part of the energy transition. However, we have not yet reached the point where we understand everything and set industry standards. One of our goals is to make battery technologies safer and more sustainable in the future and thus establish them as a firm pillar in the energy industry.
