In our vision of the new energy future, we often say our R3DiⓇ System is the heart of Virtual UtilityⓇ, creating a new source of power right at your site the instant you need it.
Our partner Keyfive developed the AI-powered monitoring software that acts as the brains of the R3Di, analyzing data to determine when to deploy it. Another critical partner, Nuvation Energy, supplies the battery management system (BMS) serves as the safety and measurement brain — a critical aspect of the circulatory system — quietly monitoring all the cells. It tracks the state of charge and health, ready to respond to any deviation so the larger system can deliver power precisely where it’s needed.
Our partnership with Nuvation goes back to our early days of developing the R3Di, before it received its patent and certification as an energy storage system.
We sat down with the founding CEO and CTO Michael Worry, who stopped by our office recently after meeting with energy policy makers, to discuss some of the biggest trends shaping energy storage today and in the years to come.
Here are some of the top takeaways from our conversation.
“When we’re bidding on projects that are multiple gigawatts, we’re talking about AI data centers that are a multiple power draw of the entire city of San Francisco,” Worry said.
With these increased power requirements, the risk of power outages is projected to increase a hundred-fold by 2030, according to a recent finding from the U.S. Department of Energy.
Operating chip cooling systems alone requires about 40% of a data center’s power today, according to a McKinsey analysis. While diesel generators have been the status quo in the industry for decades, they can not handle the power fluctuations of AI data center loads.
Battery energy storage systems provide high reliability power, manage large power fluctuations, and enhance operational continuity for data centers.
While hyperscale facilities often face grid interconnection timelines stretching up to a decade, our data center solutions can be installed in little more than a year. Their modular design also makes them easily configurable and scalable, providing close to 99% power efficiency while freeing up valuable real estate.
Rising demand hasn’t translated into equal stability across the energy storage landscape.
As some manufacturers have struggled or exited the market, customers are increasingly focused on long-term reliability.
Nuvation Energy's approach is rooted in designing and delivering battery management systems for large-scale and mission-critical energy storage applications. The company focuses on long-lifecycle BMS engineered for reliability, transparency, and performance. In a market where supplier instability has created uncertainty, customers increasingly value Nuvation's disciplined engineering process and proven ability to support complex energy storage deployments over the long term.
With roots as an engineering services company and expertise designing and delivering over 1,000 electronic products, they have developed a proprietary continuous balancing algorithm that keeps battery cells balanced during operation whereas most BMS require an ESS to be held at a high stage of charge to balance, preventing them completing their usual energy application. This increases runtime and the lifespan of the batteries while improving safety and reliability.
“We’ve been doing battery management systems for 18 years,” Worry said. “It takes a long time to tune in a complex product like a battery management system…because you’re combining precision analog measurements with high voltage, high power, and digital control loops, all inside a system that all has to be functionally safe.”
As battery energy storage systems become more integrated with utility operations and critical facilities, they are being redefined as core infrastructure, raising new questions about security, and transparency.
Nuvation Energy’s products are engineered with these concerns in mind.
Unlike many battery management systems that are designed or manufactured offshore, Nuvation designs and manufactures its BMS in North America, giving customers supply chain security and a product they can trust.
This reduces exposure to supply-chain disruptions, geopolitical risk, and cybersecurity vulnerabilities that can arise when critical components are sourced from regions outside U.S. regulatory and security frameworks.
As systems become more interconnected and grid-responsive, regulations are evolving, too.
Expanded energy storage tax credits already offer an additional “domestic content bonus” of 10% for projects with more than 40% of components produced in the United States.
Worry and his team at Nuvation Energy are working with policymakers in the United States and Canada to draw attention to threats from foreign adversaries acting as suppliers and push for regulations that balance safety, security, and innovation.
For companies evaluating energy storage systems, timing matters.
Incentives such as the Investment Tax Credit are making these investments more cost-effective, covering up to 50% of project costs, with the potential for 100% bonus depreciation the first year. For some customers, this incentive alone can save $1 million or more.
The challenges of modern energy management are too big for any one company to solve alone. That’s why partnerships like this one are essential.
By combining our Virtual Utility with Nuvation Energy’s advanced battery management system and engineering expertise, we help customers build systems that are resilient, efficient, and ready for what’s next.