Power & energy

Derating

Derating is the reduction in what a piece of equipment can deliver when its operating conditions move away from the reference conditions its rating was quoted at. In a BESS the levers are ambient temperature, altitude, AC and DC voltage, power factor and age — a PCS block quoted at 3,600 kVA delivers that number at one stated temperature, one altitude band, one grid voltage and one power factor, and something else everywhere else.

The habit that keeps projects honest is to treat every rating as one row of a matrix rather than a property of the machine: the datasheet tabulates kVA against grid voltage, ambient and altitude, and the binding figure is the continuous rating in the row that matches your site's worst hour. Derating is also two-sided — the same curves that cut capability above the reference ambient often grant more than nameplate below it.

Reviewed August 2026 by Sergey Syrvachev

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What it is (precise)

A power converter is, at bottom, a current-limited machine. Its semiconductors, magnetics and cabling set a maximum continuous current, and on the three-phase AC side apparent power is S = √3 × V(L-L) × I(line) — so at a fixed current limit, the kVA rating scales directly with AC voltage.

One shipping modular PCS delivers 374 kVA per module at 480 V and 537 kVA at 690 V: same hardware, same current limit, and the power ratio tracks the voltage ratio almost exactly. That is why a PCS power figure means nothing without its AC voltage (0.69 kV is the common grid-scale default), and why a vendor headline quoted on a higher-voltage variant does not transfer to a design built around a lower one.

Temperature derating is the thermal face of the same limit. Rated current holds only while the cooling system can remove the losses it generates, so every rating is pinned to an ambient temperature and falls above it — and the shape is a product fact, not a rule of thumb.

Within a single vendor's range, one model holds full rating to 40 C, another begins derating at 30 C, and a third is rated at 50 C outright; that last family delivers about 7.7% above its rated figure whenever the air is below 40 C, then falls from full output at 50 C to zero at 60 C. The modular unit above derates 2% per degree from 45 to 55 C and 6% per degree beyond. Derating is a capability surface with a cliff in it, and where each vendor plants the reference point is a design choice they make differently.

The other levers: altitude, DC voltage, power factor, age

Altitude bites twice — thin air cools less and insulates less — and the two effects produce opposite product behaviour. One DC/DC converter family runs flat at 100% to 2,000 m and then loses capability linearly to 66.4% at 4,000 m, about 1.7% per 100 m; an air-cooled string PCS holds full output to 5,000 m and instead derates its maximum DC voltage above 4,700 m, because for that machine the binding constraint at height is insulation clearance, not heat.

Two products, two entirely different altitude stories. The product curve is the truth, and any generic percent-per-metre rule substitutes for it badly.

The DC side interacts with everything else. One central-inverter family shows no DC-voltage derate at all when ambient is 40 C or below, yet at 50 C holds full output only to a 1,400 V knee and gives 97% at 1,500 V — the derate exists only where two stresses coincide. That interaction is why single-axis rules fail and the matrix has to be read whole. Power factor spends the same envelope from another direction: a reactive obligation consumes the apparent-power circle through S² = P² + Q², so at 0.95 power factor real power is at most 95% of the MVA rating before any thermal derate is counted.

Age is the derate no dispatch decision can reverse. Capacity fade takes usable energy down toward the 65-70% of beginning-of-life conventionally taken as End of Life, and rising internal resistance trims peak power and efficiency along the way. Oversizing and Augmentation exist to offset it, and the Capacity warranty is written against a defined operating envelope — run the plant outside the warranted temperature or cycling conditions and the guaranteed fade curve stops protecting you.

Derating is two-sided — and the datasheet figure is the best row of a matrix, not a property of the machine.
the datasheet figurebelow 40 °Cmore than the plate says107.7 %at 50 °Cthe rated row100 %at 60 °Cno output at all0 %continuous capability, per cent of the rated rowcapability the site's worst hour takes away

Five levers move the row: ambient temperature, altitude, AC and DC voltage, power factor and age. Onset is vendor-set and spans 30–50 °C across models within one product range, so the shape above is one family's and not a rule. Altitude is product-specific too — flat to 2,000 m then about 1.7% per 100 m, reaching 66.4% at 4,000 m on one family, while another holds full power to 5,000 m. Voltage moves it arithmetically: with a fixed current limit, kVA scales with AC voltage, so one shipping modular PCS gives 374 kVA at 480 V and 537 kVA at 690 V. And S² = P² + Q² means that at 0.95 power factor, real power is at most 95% of the MVA rating. The schedule is enforced rather than advisory: PCS firmware folds output back as temperatures rise and the BMS caps battery current in real time, so there is no margin to eat. The genuine slack is the green bar — and capability that was never tested and never written into the contract is operating margin, not revenue.

Key facts
What it is
Capability below (or above) the datasheet figure once conditions leave the rating's reference row
The five levers
Ambient temperature, altitude, AC and DC voltage, power factor, age
Voltage dependence
Fixed current limit → kVA scales with AC voltage: 374 kVA at 480 V vs 537 kVA at 690 V on one shipping modular PCS
Temperature reference
Vendor-set: derate onset spans 30-50 C across models in one product range; one 50 C-rated family gives +7.7% below 40 C and zero output at 60 C
Altitude
Product-specific: flat to 2,000 m then ~1.7%/100 m (66.4% at 4,000 m) on one family; full power to 5,000 m on another — read the curve
DC-voltage knee
Can appear only under combined stress: one family holds 100% to 1,400 V at 50 C ambient (97% at 1,500 V), with no derate at all below 40 C
Power factor
S² = P² + Q²: at 0.95 PF, real power is at most 95% of the MVA rating
Age
Capacity fade toward the 65-70% of BOL taken as end of life, plus resistance rise trimming power — offset by augmentation, not by dispatch

The battery derates itself, in real time

Everything above is printed as curves; the DC block enforces its derates in firmware instead. Charge power tapers near the top of the SOC window and discharge power near the bottom, so a rating that holds across the middle band does not hold at the ends. Temperature narrows the window further: below roughly 0 C, charging must be derated or blocked outright, because lithium plates onto the graphite anode instead of intercalating — permanent capacity loss and a potential internal-short seed. The BMS applies these limits second by second.

Plant-level available power is therefore the minimum of two schedules: the PCS matrix row for the day's conditions and the battery's state right now. A 100 MW plant at high SOC on a cold morning can accept far less charge than its interconnection limit allows, and an EMS that dispatches against nameplate rather than against the live limit will simply be refused by the layers below it. Local protection wins that argument every time.

How it shows up in specs, studies and contracts

On a datasheet, look past the headline to the matrix: rated kVA tabulated against grid voltage, ambient and altitude, with derating curves above the reference point, and ask three questions — is the figure continuous or a short-time overload, which voltage variant is it quoted on, and at what temperature does it hold.

Transformers carry the same idea as cooling stages: one nameplate can read 75/100/125 MVA for the same unit at ONAN/ONAF/OFAF. The binding number for the project is the continuous rating in the row that matches the site's hottest credible hour, at its altitude, at its grid voltage.

Studies and contracts are written at the derated point whether you modelled it or not. The interconnection study holds the plant to its contracted MW and reactive envelope at the POI; the capacity test demonstrates it at a stated ambient and power factor; an energy model that dispatches the brochure number all year overstates August revenue at any hot or high site. Vendor comparison has the same discipline: a unit rated at 50 C looks smaller on paper than one rated at 40 C and may be the larger machine at your site — comparisons mean nothing until every number is moved to the same row.

Common pitfalls

The first trap is reading the headline as a guarantee. The datasheet's front-page figure is the best row of the matrix — reference ambient, reference voltage, unity power factor — and the firmware will fold output back the moment the heatsink says so.

The second is assuming derates are linear and independent: the 50 C-rated family above loses its entire output across a ten-degree band, and its DC-voltage knee exists only at high ambient. Extrapolating a gentle 2%-per-degree slope past the cliff, or adding single-axis derates that actually interact, both produce numbers the hardware will never deliver.

The third trap is forgetting the flip side. Below the reference point many fleets carry genuine headroom — 7.7% on the family rated at 50 C, more on others — which is real capability for a cool-climate site or a winter peak. But headroom the capacity test never demonstrated and the contract never named is not bankable capability; it is a favourable rounding error. Count in contracts only what is tested at stated conditions, and treat everything above the reference row as operational margin, not revenue.

Common misconception

Derating is vendor conservatism — a safety margin you can eat into, because the hardware can really deliver the datasheet number anyway.

In reality: The derate schedule is enforced, not advisory: PCS firmware folds back output as ambient and heatsink temperatures rise, and the BMS caps battery current in real time, so there is no margin to eat. The headline is simply the best row of a capability matrix, quoted at reference conditions; at the site's worst hour the deliverable number is lower, and the interconnection study and capacity test hold the plant to that number at the POI. The genuine slack sits on the other side of the reference point — a family rated at 50 C carries real headroom in cool weather — but capability that was never tested and never written into the contract is operating margin, not revenue.

Visuals & further reading
Go deeper

Derating, in context.

The Grid-Scale BESS course covers derating — and the rest of the system — from the ground up, the way it actually gets deployed.

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