Technical FAQs 4

What is the general contracting structure for a battery energy storage system?

The first, and the topic of an earlier article, is the general contracting structure. Developers of battery energy storage system, or BESS, projects are using a multi-contractor, split-scope contracting structure instead of the more traditional single-contractor, turnkey approach. (See "Battery Purchase Contracts" in the December 2021 NewsWire.)

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).

Should a battery procurement contract aggregate liability in a collective project?

For example, if a developer has a number of projects supplying battery storage under a single offtake contract, then it might prefer a single battery procurement contract aggregating liability in the collective project, given that liability under the offtake contract may be connected for failure to develop the collective project.

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.

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