What Really Matters When Planning, Permitting and Implementing Large-Scale Battery Energy Storage Systems (BESS)

What is a Battery Energy Storage System (BESS)?

A battery energy storage system (BESS) is a stationary energy system that stores electrical energy and releases it again at a later point in time. It is used to generate revenues from electricity markets, optimize self-consumption, reduce peak loads, or relieve stress on power grids.

Depending on its design, a BESS can be operated on the grid side (front of the meter), on the consumer side (behind the meter), as a standalone storage system, or in combination with generation assets.

Why do many battery storage projects not fail because of technology?

In practice, one thing becomes clear: the technology is available—the challenges arise during project execution. From the initial site idea through permitting, financing and construction to operation, similar issues occur repeatedly.

Lack of coordination, incorrect assumptions or unclear responsibilities lead to project delays, higher costs or economically flawed system designs.

Where do the typical pitfalls in BESS projects come from?

Battery storage projects operate at the intersection of grid operation, electricity markets, permitting law and technical system integration. At the same time, many stakeholders—such as grid operators, banks or insurers—still have limited experience with large-scale battery storage systems.

Diverging expectations, long processing times and a lack of standardized procedures further increase complexity.

Our checklist (available as a download) structures the path to a battery storage project into six project phases—each highlighting typical pitfalls.

Initial assessment and site evaluation: What needs to be clarified at this stage?

In the early phase, it is assessed whether a site is fundamentally suitable from both a technical and permitting perspective. This includes electrical planning and the initial inquiry to the grid operator.

Typical risks include long response times, grid bottlenecks, large distances to the grid connection point, or grid connection offers that allow feed-in only but no electricity withdrawal.

Feasibility & techno-economic optimization: Why is this phase particularly error-prone?

In this step, cost estimates, revenue assumptions and the sizing of the storage system are defined. The operating model is also a key factor. Depending on the purpose the battery storage system is intended to serve and the systems it must interact with, different hurdles and levels of complexity arise.

Frequent pitfalls include insufficient grid connection or short-circuit capacity, incorrect revenue assumptions or committing too early to a specific marketer. Additional technical issues can occur if existing electrical concepts—such as differing voltage levels between a PV system and the battery storage—are incompatible.

Permitting planning: What risks arise during the permitting process?

Permitting planning includes building permits or permit exemptions, coordination with authorities, as well as grid connection planning and site layout design.

Risks may result from additional requirements related to nature conservation, landscape protection or water protection areas, from insufficiently coordinated fire protection concepts, or from noise and emission issues near residential areas. Delays at this stage can lead to grid connection offers expiring due to a lack of sufficient planning maturity.

Specification, procurement & financing

In a relatively young market, banks, insurers and other financing partners often still have limited experience with BESS projects. As a result, requirements for transparency, traceability and risk assessment are particularly high.

At the same time, the project process is not strictly linear. Many sub-steps overlap: techno-economic design, permitting planning, discussions with banks and initial technical considerations often take place in parallel. Addressing financing for the first time only in the fourth project step would therefore be too late.

The reason financing is positioned here is clear: this is the phase in which financing is finalized. A legally robust permitting situation and a plausible techno-economic concept that financing partners can assess are prerequisites. Without these foundations, binding financing commitments are usually not possible.

Specification, tendering and contract award must be clearly distinguished from financing. Initial specifications or technical tenders can sometimes be carried out independently of final financing—for example to validate costs or technically safeguard the concept.

However, awarding contracts to EPC contractors, manufacturers or operators should only take place once financing is secured. Otherwise, significant project risks arise.

Typical pitfalls in this phase include incomplete specifications, unsuitable system or manufacturer selection, lack of experience among project stakeholders, and service and maintenance contracts that do not align with the project’s long-term operational and economic logic. Errors made here directly affect construction, commissioning and operation—but they are symptoms of insufficient project preparation, not the root cause.

Construction and commissioning: What pitfalls occur during build-out and commissioning?

During construction and commissioning, clearly defined responsibilities are essential. Typical issues include insufficient quality control, metering concepts that are not future-proof, or unstable data communication between BMS, EMS, PCS, the grid connection system and the marketer.

In addition, there is no uniform standard for acceptance testing, which is often mistakenly understood as project completion rather than as the transition into commercial operation.

Regular operation: Why does operation determine the long-term success of a BESS?

In regular operation, service, maintenance and communication are key. Frequently, business interruption insurance is missing, responsibilities are not clearly defined, or the long-term behavior of the storage system—such as degradation—is insufficiently taken into account.

The service quality of the operations and maintenance (O&M) provider also plays a central role.

What solution does a structured approach provide?

A structured view along the six project phases creates transparency. It helps identify dependencies at an early stage, assess assumptions realistically and clearly define responsibilities.

This is exactly where the checklist comes in—by systematically making typical pitfalls visible.

Conclusion: What is the most important success factor in battery storage projects?

The success of a BESS depends less on individual components than on the quality of the overall project structure across all phases. In our experience, the greatest risks arise at the interfaces between planning, permitting, construction and operation.

Those who structure these transitions cleanly significantly reduce project risks. As the market matures, standards will emerge. Until then, a clear, step-by-step approach across the entire project lifecycle remains the decisive lever for successful battery storage projects.

Disclaimer: This article reflects our practical experience and does not replace legal advice.