---
title: How to Use Penalty Risk Assessment
description: Use Penalty Risk Assessment in TWAICE to identify BESS operating conditions that risk contractual penalties and prevent them.
---

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# How to Use Penalty Risk Assessment

## Understand why delivery shortfalls are costly and how to use Penalty Risk Assessment to spot systems at risk of missing their commitments.

**On this page**

- [Why it matters](https://support.twaice.com/knowledge/how-to-use-penalty-risk-assessment#h_5d74dd1ec7)
- [What Penalty Risk Assessment enables you to do](https://support.twaice.com/knowledge/how-to-use-penalty-risk-assessment#h_5546f4e577)
- [How to use the Penalty Risk Assessment](https://support.twaice.com/knowledge/how-to-use-penalty-risk-assessment#h_cbf15993f2)

BESS are only as valuable as their ability to deliver power, for exactly the magnitude and duration agreed upon. Yet, for many asset managers, unexpected power drops, unfulfilled bids, and trading penalties remain a painful and recurring reality.

That’s why TWAICE has launched Penalty Risk Assessment, a new feature designed to bring clarity, confidence, and control to one of the most critical risk drivers in battery operations: the SoC errors.

**Stay available when it matters most, with predictable power**

TWAICE Penalty Risk Assessment ensures your BESS is ready to deliver on the days that matter most, because in volatile markets, performance during just a few hours can define your entire year.

### Why it matters

Market penalties are avoidable, but only if you know when you're at risk.  
Asset managers routinely face penalties when their systems fail to deliver as committed. These incidents often trace back to inaccurate SoC estimations from BMS or EMS systems.

### What Penalty Risk Assessment enables you to do

This feature turns abstract SoC issues into quantifiable operational risk, giving you the tools to act with confidence and precision.

Whether it's a case at low SoC or high SoC, Penalty Risk Assessment makes the invisible risk visible, helping you avoid the costliest mistakes.

### How to use the Penalty Risk Assessment

With Penalty Risk Assessment, you can:

- **Detect and assess penalty risk**: Get clear visual markers when your system is operating near risky thresholds (left hand side of the image below)
- **Set and share corrected SoC limits**: Receive corrected SoC limit recommendations tailored to your system’s actual state (right hand side of the image below)

[![](https://support.twaice.com/hubfs/Knowledge%20Base%20Import/image-Oct-20-2026-12-28-33-3782-PM.png)](https://downloads.intercomcdn.eu/i/o/thagvi83/47049063/fada0ff8fd9d0e79d544b2ccb084/image.png?expires=1792501200&signature=8d7f07eb81dba01bc21e6eb82353b9370a4f0a25e68f14c3ed2c2f30550d575b&req=1NJvwVH6qjRk2hL085Zhod5ucPuWAUDEWazibVnwjB%2BquEZdnNIG5qsUCK9F%0A8iowtcpXtveZ3BRu%0A)

- **Connect SoC errors to real system impact**:

    - See how component-level issues (e.g., imbalanced strings) cause full-system derating (left hand side of the image below).
    - This chart relates the TWAICE corrected string-soc (with a correction-factor applied) of the two nominal power limiting strings (upper: green / lower :blue) with the system BMS SoC.
    - Each dot represents one system BMS SoC and the related two limiting strings on the upper and lower SoC and connects it to the TWAICE corrected SoC.
    - The two limiting strings are the ones limiting the system to its nameplate power in charge and discharge direction.
    - The dashed lines indicate the recommended system BMS SoC range, which are derived from the extremes of the green and blue curve.
    - The chart includes the last 7 days of operation, hence, there can be multiple dots at the same location
    - If the System BMS SoC is not provided to us via a sensor yet, TWAICE calculates the System BMS SoC based on the String BMS SoC's
- **Quantify SoC related risks over time**: Identify the system's operation in relation to the recommended SoC limits to assess actual operational risk

[![](https://support.twaice.com/hubfs/Knowledge%20Base%20Import/image-Oct-20-2026-12-28-39-6288-PM.png)](https://downloads.intercomcdn.eu/i/o/thagvi83/52111641/cd7af38a36ef50925ce503c88db5/image.png?expires=1792501200&signature=9fcabf9414c85b27d5b2957de2a1bad2200632c8f4e711febb45824aecd2a434&req=1dduxFn8qDZk2hL085ZhoXpBVU%2BbGi7elfskZcCC0Xu%2FLHHG6vRCPZzbaO48%0AsGaKv9kEzo2GIORE%0A)

- **Explain penalties and fix root causes fast**: Drill into the specific components that triggered a failure, so O&M teams can act immediately.

[![](https://support.twaice.com/hubfs/Knowledge%20Base%20Import/image-Oct-20-2026-12-28-47-4541-PM.png)](https://downloads.intercomcdn.eu/i/o/thagvi83/47049636/eaf36d4e82af3f9a7f49d0c01fa3/image.png?expires=1792501200&signature=b08992dee9fe96ba6d18db9fc791aecfd72f7d31e2741abb901e77629a023782&req=1NJvwVH8rzFk2hL085Zhod0P0cb%2BUYnR33%2F22BLQJd%2Buhwu3X4XhHpertV9N%0AhvMOBJYcI6Onfzly%0A)

- **Expert mode to explain underperformance further**: Experts users can drill down into the direct comparison between BMS and TWAICE corrected signals to further understand errors and requirements for SoC recalibrations.

[![](https://support.twaice.com/hubfs/Knowledge%20Base%20Import/image-Oct-20-2026-12-28-48-8326-PM.png)](https://downloads.intercomcdn.eu/i/o/thagvi83/47050430/a9f058d9f9aa69500e7bb3d5a1ad/image.png?expires=1792501200&signature=3e324b581fd7f43d222208cb865a765a9f820dbb1204ea62e436aaf704a6cbd6&req=1NJvwFj%2Brzdk2hL085ZhoXBJaTLm7brGMc9EDqyORv4Yo9oit7U5Xo7ab6As%0AI7j1KeoB0FzszACH%0A)

We hope you find the TWAICE Penalty Risk Assessment useful! Please reach out to us with feedback.

Watch this short video to get more insights into the new feature:

<iframe class="hs-responsive-embed-iframe" height="360" src="https://www.youtube.com/embed/8G_9XThutVA" style="position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;" width="640" allowfullscreen data-service="youtube"></iframe>

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