What are energy storage procurement contracts?

Energy storage procurement contracts must also take into account the ever-evolving suite of laws and regulations applicable to energy storage projects, including as a result of the recent change in administration in the United States.

What are the different types of battery procurement agreements?

There are primarily three types of agreements relevant to battery procurements: (1) purchase agreements, (2) master supply agreements (MSAs), and (3) capacity reservation agreements (CRAs).

What happens if a battery procurement is delayed?

Delays in the procurement of batteries could lead to failures to comply with regulatory mandates, or, for utilities opting to install storage as non-wires alternatives in place of other system upgrades, the failure to implement necessary system improvements.

How does an EPC contract work for energy storage projects?

When developing an energy storage project, a project owner can engage an EPC contractor to provide a fully-wrapped EPC agreement that will encompass the procurement, installation, and commissioning of batteries. In many cases, however, owners will contract directly with battery suppliers for battery supply and commissioning.

What are energy storage contracts?

These contracts allocate the risks of project development, construction, and performance between the parties and include the price that will be paid by the utility for the resource or the energy storage services that are to be provided.

Will a new tax policy affect the lithium-ion battery market?

Another year of growth in the utility-scale storage market also marked a second consecutive year of record lows in the installed cost of lithium-ion batteries. However, trade actions and changes to tax policy have the potential to increase costs and dampen short-term growth.