Key Considerations for Utility-Scale Energy Storage Procurements
There are three key types of procurement contracts—power purchase agreements (PPAs) or energy storage services agreements; engineering, procurement, and construction (EPC)
For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.
For such a customer, an energy storage project may allow the customer to reduce its peak demand periods, and thus the associated demand charges, by reducing grid power consumption during its peak periods (so-called “peak shaving”).
Operating Limitations: Energy storage resources may be subject to operational constraints that do not affect traditional generation projects. For example, certain battery technologies will degrade more quickly if the state of charge is not actively managed within a certain range.
Key Finance-ability Provisions: Energy storage resources may also be financed on a nonrecourse basis and, like any other project financed in such manner, will need to address issues upon which nonrecourse lenders will focus, including assignment, events of default, performance requirements, key dates, and collateral.
.PDF includes complete article with source references.
Download UPS datasheets, battery sizing guides, and power redundancy white papers.
Via Monte Rosa, 91
20149 Milan, Italy
Italy (Sales): +39 06 8745 3292
Italy (Support): +39 335 729 8537
Mon-Fri: 9:00 AM – 6:00 PM (CET)