DOE ESHB Chapter 20 Energy Storage Procurement
This chapter supports procurement of energy storage systems (ESS) and services, primarily through the development of procurement documents such as Requests for Proposal (RFPs), Power Purchase
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.)
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.
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.
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.
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