6 FAQs about Energy storage system procurement

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.

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 the different options for energy storage projects?

In each case, there are a number of different options and alternatives. 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.

Are energy storage projects a meter utility scale project?

The majority of new energy storage installations over the last decade have been in front of the meter utility scale energy storage projects that will be developed and constructed pursuant to procurement contracts entered into between project developers (or a special-purpose project company owned by such developers) and the utilities.

What is a Federal Energy Management Program checklist?

Federal Energy Management Program Checklist provides federal agencies with a standard set of tasks, questions, and reference points to assist in the early stages of battery energy storage systems (BESS) project development.

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.

View/Download Energy storage system procurement [PDF]

PDF version includes complete article with source references. Suitable for printing and offline reading.