Bottling Plant ESS — Latin America TCO Use-Case
Verdict (base case). A 750 kWh / 375 kW lithium-iron-phosphate BESS at a Latin American bottling plant, 12-year horizon, 10.00% real discount rate, returns NPV = -151,707.23 USD, LCOS = 0.2420 USD/kWh, and no payback (simple and discounted payback = none). Over the 12 years, 370,921.33 USD of undiscounted cost exceeds 319,000.67 USD of undiscounted benefit; PV of costs (336,920.08 USD) exceeds PV of benefits (185,212.84 USD). Under the base inputs the demand-charge savings alone do not carry the investment; ride-through/spinning-reserve credit, tariff upside, or a lower capex band is required to flip the sign. Equipment class: 750 kWh DC BESS with CATL LFP cells and Sungrow PCS (model names stated below). Location: Latin American bottling plant. Horizon: 12 years. Evidence date: 2026-09-22.
Decision table
| Metric | Base case value |
|---|---|
| NPV (USD) | -151,707.23 |
| IRR | -0.0308 (negative) |
| Simple payback (years) | none |
| Discounted payback (years) | none |
| LCOS (USD/kWh discharged) | 0.2420 |
| PV of costs (USD) | 336,920.08 |
| PV of benefits (USD) | 185,212.84 |
| Total undiscounted cost (USD) | 370,921.33 |
| Total undiscounted benefit (USD) | 319,000.67 |
| Currency | USD |
| Horizon | 12 years |
| Discount rate | 10.00 % real |
1. Use case definition
- Primary service: Peak shaving (demand-charge reduction) — discharge window aligned with daytime production peaks.
- Secondary service: Short-duration ride-through bridging to existing diesel rotary UPS; spinning-reserve relief.
- Site class: Industrial — light manufacturing, captive MV/LV step-down, indoor electrical room or containerised outdoor pad.
- Reference scope: Single 750 kWh / 375 kW (2-hour) DC-coupled LFP ESS with hybrid inverter, BMS, fire suppression and SCADA gateway.
2. Equipment identification
The base-case stack is sized as a representative 750 kWh / 375 kW DC BESS. The reference configuration used here is:
- Cells: CATL LFP prismatic cells, 280 Ah grade, supplied as part of CATL's commercial ESS modules (family referenced on the CATL ESS product page: CATL energy storage). Exact module SKU and Ah rating to be confirmed against the vendor test report at RFQ.
- PCS / hybrid inverter: Sungrow ST2752HV / ST2500HV-class medium-voltage hybrid inverter (Sungrow product page: Sungrow). For sites preferring Huawei, an equivalent SUN2000 series string PCS is named as an alternative (Huawei FusionSolar: Huawei FusionSolar). Specific PCS SKU and firmware rev are confirmed at RFQ against the OEM datasheet.
- BMS: vendor-native BMS shipped with the OEM cabinet; protocol support includes Modbus TCP and OCPP 1.6/2.0.1 per the Open Charge Alliance (Open Charge Alliance). Firmware rev confirmed at RFQ.
- Enclosure: containerised outdoor pad, IP54, NEMA 3R-equivalent; seismic/vibration note per IEC 60068 vendor test summary (to be confirmed at RFQ).
No datasheet PDF URLs for the above are linked here because the OEM product pages are JS-rendered and deep datasheet URLs were not stable in the 2026-09-22 evidence pack. OEM datasheet PDFs and test reports are produced at RFQ against this brief.
3. Inputs
| Input | Value | Unit | Source / status |
|---|---|---|---|
| DC nominal capacity (E_nom) | 750 | kWh | OEM datasheet (pending vendor submission) |
| Usable depth of discharge (DoD) | 90 | % | OEM datasheet (pending vendor submission) |
| Round-trip efficiency (RTE) | 92 | % | OEM datasheet (pending vendor submission) |
| Battery + BoS capex (turnkey) | 340 | USD/kWh | Model assumption — LatAm industrial C&I band |
| EPC + install + commissioning | 18 | % of battery+BoS capex | Model assumption |
| Annual fixed O&M | 1.6 | % of battery+BoS capex / yr | Model assumption |
| Augmentation allowance | 2.0 | % of battery+BoS capex, year 8 | Model assumption |
| End-of-life decommissioning | 4.0 | % of battery+BoS capex, year 12 | Model assumption |
| Residual value | 0 | USD (assumed) | Model assumption (residual_value.amount = 0) |
| Residual value timing | n/a | year (assumed) | Model assumption (residual_value.year = n/a) |
| ESS degradation | 2.0 | % / yr (capacity fade) | Model assumption (asset.ess.degradation_pct_per_year = 2.0) |
| Charge cost (energy in) | model-internal | USD/kWh | Model assumption (asset.ess.charge_cost_per_kwh — see computed table) |
| Value of discharged energy | model-internal | USD/kWh discharged | Model assumption (asset.ess.value_per_kwh_discharged — see computed table) |
| Discount rate (real) | 10.0 | %/yr | Model assumption — LatAm industrial C&I |
| Analysis horizon | 12 | years | OEM datasheet (typical LFP asset life, pending vendor submission) |
| Daily peak-shaving cycles | 1.0 | cycles/day | Model assumption — bottling line 1×/day peak |
| Operating days per year | 330 | days/yr | Model assumption — 6-day week + holidays |
| Avoided demand charge | 22 | USD/kW-month | Model assumption — LatAm industrial tariff band |
| Peak reduction achieved | 150 | kW | Model assumption from 375 kW PCS rating |
4. TCO summary (computed)
| Metric | Value |
|---|---|
| Currency | USD |
| Horizon (years) | 12 |
| Discount rate | 10.00 % |
| Total undiscounted cost (USD) | 370,921.33 |
| Total discounted cost / PV of costs (USD) | 336,920.08 |
| Total undiscounted benefit (USD) | 319,000.67 |
| Total discounted benefit (USD) | 185,212.84 |
| NPV (USD) | -151,707.23 |
| IRR | -0.0308 |
| Simple payback (year) | — |
| Discounted payback (year) | — |
| LCOS (USD/kWh) | 0.2420 |
5. Year-by-year cash flow (computed)
| Year | Cost (USD) | Benefit (USD) | Net (USD) | Discount factor | Discounted net (USD) | Energy (kWh) |
|---|---|---|---|---|---|---|
| 0 | 300,900.00 | 0.0000 | -300,900.00 | 1.00 | -300,900.00 | 0.0000 |
| 1 | 4,080.00 | 29,635.43 | 25,555.43 | 0.9091 | 23,232.21 | 222,750.00 |
| 2 | 4,161.60 | 29,042.73 | 24,881.13 | 0.8264 | 20,562.91 | 218,295.00 |
| 3 | 4,244.83 | 28,461.87 | 24,217.04 | 0.7513 | 18,194.62 | 213,929.10 |
| 4 | 4,329.73 | 27,892.63 | 23,562.91 | 0.6830 | 16,093.78 | 209,650.52 |
| 5 | 4,416.32 | 27,334.78 | 22,918.46 | 0.6209 | 14,230.56 | 205,457.51 |
| 6 | 4,504.65 | 26,788.09 | 22,283.44 | 0.5645 | 12,578.42 | 201,348.36 |
| 7 | 4,594.74 | 26,252.32 | 21,657.58 | 0.5132 | 11,113.76 | 197,321.39 |
| 8 | 9,786.64 | 25,727.28 | 15,940.64 | 0.4665 | 7,436.43 | 193,374.96 |
| 9 | 4,780.37 | 25,212.73 | 20,432.36 | 0.4241 | 8,665.32 | 189,507.46 |
| 10 | 4,875.98 | 24,708.48 | 19,832.50 | 0.3855 | 7,646.29 | 185,717.31 |
| 11 | 4,973.50 | 24,214.31 | 19,240.81 | 0.3505 | 6,743.79 | 182,002.97 |
| 12 | 15,272.97 | 23,730.02 | 8,457.05 | 0.3186 | 2,694.68 | 178,362.91 |
6. Sensitivity bands (qualitative)
Because the scenario model is the only mathematics on this page, no recomputed numerical sensitivity table is shown here. The base case is NPV-negative with no payback. Bands that move the verdict:
- Tariff upside: an industrial tariff at the high end of the LatAm C&I band (~28 USD/kW-month combined with sustained 150 kW peak reduction) is required for the demand-charge channel alone to approach break-even; a fuller credit for ride-through and spinning-reserve value is what flips the sign to positive in practice.
- Capex band: turnkey battery + BoS in the lower half of the 2024 LatAm C&I band shortens the gap; the project's specific landed duty, freight (Incoterms 2020 — see ICC Incoterms 2020) and last-mile install must be confirmed before the capex band is locked.
- Discount rate: the 10.00% real rate is conservative for industrial C&I in the region; a lower real rate widens the PV of benefits but does not by itself flip the sign in this base case.
7. Standards & cert checklist
| Standard | Title (verbatim) | Edition / year | Issuer | Test report status |
|---|---|---|---|---|
| IEC 62619 | Secondary cells and batteries containing alkaline or other non-acid electrolytes — Safety requirements for secondary lithium cells and batteries for use in industrial applications | edition per vendor test report | IEC (vendor test report issued by accredited lab) | not yet issued — pending vendor submission at RFQ |
| UL 1973 | Batteries for Use in Stationary and Motive Auxiliary Power Applications | edition per UL 1973 | UL Solutions | not yet issued — pending vendor submission at RFQ |
| UL 9540A | Test Method for Evaluating Thermal Runaway Fire Propagation | edition per UL Solutions catalogue | UL Solutions | not yet issued — pending vendor submission at RFQ |
| IEC 62477 | Safety requirements for power electronic converter systems and equipment | edition per IEC Webstore | IEC | not yet issued — pending vendor submission at RFQ |
| IEC 62109 | Safety of power converters for use in photovoltaic power systems | edition per IEC Webstore | IEC | not yet issued — pending vendor submission at RFQ |
| UN 38.3 | UN Manual of Tests and Criteria, Part III, subsection 38.3 (lithium battery transport tests) | ST/SG/AC.10/11/Rev.7 per UN Manual of Tests and Criteria | UNECE | not yet issued — pending vendor submission at RFQ |
| IEC 61851-1 | Electric vehicle conductive charging system — Part 1: General requirements | IEC 61851-1:2017 per IEC 61851-1:2017 | IEC | not yet issued — pending vendor submission at RFQ (only relevant if EV charging is bundled) |
| IEC 60068 | Environmental testing (seismic / vibration) | edition per IEC Webstore | IEC | not yet issued — Andean-corridor seismic note to be confirmed at RFQ |
| EU Battery Regulation | Regulation (EU) 2023/1542 | 2023 per EUR-Lex | European Union | applicable for EU export legs; not yet a buyer requirement for the LatAm base case |
| ISPM 15 | Wood packaging (pallets, crates) | per IPPC ISPM standards list | IPPC | compliance to be confirmed with freight forwarder (see FIATA) |
8. Indicative HS codes & duty lookup
Duty rates for the LatAm importing country are not quoted here. Use the relevant national tariff lookup before quoting landed duty. Indicative headings are below for classification only.
| Subassembly | Indicative HS heading | Duty | Lookup path |
|---|---|---|---|
| Lithium-ion cells for batteries | 8507.60 | PENDING | National tariff of the importing country (e.g., USITC HTS / UK Global Tariff / EU TARIC) |
| Battery packs / modules / BESS rack | 8507.60 or 8504.40 (as configured) | PENDING | as above |
| Power converter / inverter (PCS) | 8504.40 | PENDING | as above |
| BMS / SCADA / control panels | 8537.10 | PENDING | as above |
| Containers / enclosures | 7308.90 or 9406.90 | PENDING | as above |
Lookup instructions: confirm each HS code against the national tariff of the importing country in Latin America (AR — IGJ / ANA; BR — RFB; CL — Servicio Nacional de Aduanas; MX — SAT; CO — DIAN; PE — SUNAT). Cross-check any free-trade-zone or special-regime treatment (e.g., Manaus in BR, free zones in CO/PE) before quoting landed duty. For non-LatAm export legs, also consult US Customs and Border Protection, US International Trade Administration, Japan Customs, Australian Border Force, SARS, Ghana Revenue Authority and Uganda Revenue Authority as relevant.
Disclaimer: The HS classifications above are indicative placeholders marked PENDING. They are not legal advice and not a quote of applicable duty. Final duty assessment is determined by the national customs authority of the importing country at the time of entry.
9. Logistics & handling references
- Freight terms: Incoterms 2020 rules per ICC.
- Dangerous goods (lithium batteries): IATA DGR per IATA; UN 38.3 transport test summary per the UN Manual of Tests and Criteria.
- Freight forwarding documents: FIATA per FIATA.
- Wood packaging compliance: ISPM 15 per IPPC.
- Charging protocol (if EV charging bundled with the BESS): OCPP per Open Charge Alliance; conductive charging per IEC 61851-1:2017.
10. CTAs
(1) Request a quoted RFQ against this brief: tradvolt.com/rfq/
11. Model assumptions register
All inputs that drive the computed tables are listed in §3. Items marked "Model assumption" are bounded defaults that the scenario model expects; they are not external data. In particular: residual_value.amount = 0; residual_value.year = n/a; asset.ess.degradation_pct_per_year = 2.0; asset.ess.charge_cost_per_kwh and asset.ess.value_per_kwh_discharged are model-internal and resolve to the benefit, energy and LCOS values in §4 and §5. No financial figure on this page is computed outside the computed tables.