Beyond the Iron Triangle: The Harmony Triangle for BESS

The classic iron triangle— cost, time, quality —still matters. But it is ex-post and in BESS , it’s not enough. I prefer a triangle that reflects our real work: the Harmony Triangle — Engineering, Project Management, Project Finance .

Engineering Deliver a design that truly works. As engineers (me included), we love to over-engineer—until the solution is no longer optimized for the client and becomes too expensive to be bankable.

Project Management Turn the design into a pragmatic “suit”: contracts, deliverables, team, schedule, and risk. Not a fancy suit that eliminates all risk and inflates cost to the point partners don’t want to work with you.

Project Finance Even with a solid design and PM suit, without capital you go nowhere. Our job is to translate technical value into investor language— NPV, IRR, ROI —so the case is clear and fundable.

The key is harmony between these three. If finance shows a constraint, the answer is often in re-engineering/value-engineering (engineering side) or risk-sharing, contract terms, and supplier choices (PM side). And vice versa: when you spot a technical or financial opportunity, update the PM suit accordingly. Likewise, PM challenges (e.g., late delivery) are rarely solved in isolation—you bring in engineering and finance to find alternatives while keeping performance parameters intact and respecting the client’s risk appetite.

Examples from real projects

1. Hot-climate reality (KSA/GCC)

Engineering: Shift to liquid-cooled containers, derate C-rate, optimize HVAC setpoints.

PM: Add FAT at elevated ambient, revise ITPs, enforce thermal-runaway testing; stock spares for pumps/chillers.

Finance: Higher CAPEX, but lower degradation → better lifetime MWh and availability KPIs → stronger DSCR.

2. Round-trip efficiency (RTE) vs. LCOS

Finance: Each +0.5–1.0% RTE improves revenue and reduces LCOS; lenders give credit to measurable gains.

Engineering: Cable upsizing, busbar layout, cooling optimization, tighter EMS dispatch windows.

PM: Loss-measurement protocol in SAT; acceptance criteria linked to RTE.

3. Supply-chain & schedule risk

Finance: Earlier partial COD improves cash-flow profile and milestone payments; lowers working-capital strain; enables earlier refinancing if structured.

Engineering: “Planung der Planung”; prefer mature, modular solutions; evaluate alternates with better delivery times.

PM: Define quality gates, active risk management, insurance techniques (e.g., DSU ).

4. Fire safety & insurance

Engineering: UL 9540A-informed spacing, gas detection, clean-agent suppression, compartmentalization.

PM: Develop a complete firefighting concept and train/localize it with fire brigades; coordinate AHJ approvals and insurer requirements in design reviews.

Finance: Premiums drop with demonstrable mitigation; underwriters improve terms → cheaper cost of risk.

5. Revenue stacking (FFR/FCR/Black Start/VAR)

Engineering: Future-proof design; EMS modes for fast response; grid-forming firmware where required; robust comms.

PM: Clear EMS requirements; validate via low-risk tests (e.g., RTDS ); modify SAT to test each mode and KPI; define performance guarantees; add second-layer SoC validation (data diagnostics).

Finance: Be open to financing future-potential revenue streams; diversification reduces merchant risk; lenders/ICs are more comfortable with multi-service plants.

6. Augmentation strategy (if needed)

Engineering: Design the BESS yard and EMS to accept future blocks, even across chemistries.

PM: Include augmentation windows, interfaces, and change-management in EPC/O&M.

Finance: Keeps contracted capacity whole → protects cash flows and covenants later in life; define reserve/blocked accounts for augmentation and major maintenance.

7. Site constraints & footprint

Finance: Reduced land/civil CAPEX; sometimes faster permitting → improved IRR.

PM: Construction sequencing to minimize civil rework; logistics/cranage plan.

Engineering: Higher energy-density containers, elevated cable trays, compact yards.

8. Communications & cybersecurity

Engineering: Robust LAN/WAN, precise time-sync, secure gateways aligned with RCC/NCC specs.

PM: Map cyber risks to revenue streams; maintain clear ICDs; include FAT/SAT for comms and cyber-hardening tasks.

Finance: Compliance lowers integration risk—often a hidden cause of delays—protects COD and cash flows.

I believe that developing and executing BESS with these three elements— in harmony —keeps business cases healthy and accelerates the learning curve for companies and engineers alike.

Originally published on LinkedIn Pulse. Open the original →