Energy storage epc detailed process

What is an EPC agreement for a battery energy storage system?

The negotiation of an engineering, procurement and construction (EPC) agreement for a battery energy storage systems (BESS) project typically surfaces many of the same contractual risk allocation issues that one encounters in the negotiation of an EPC agreement for a solar or wind project.

What is the difference between Bess and EPC?

Maintenance is both preventive and corrective to maximize BESS output and ensure uninterrupted operation. BESS = battery energy storage system; EPC = engineering, procurement, and construction; ESS = energy storage system. Source: Korea Battery Industry Association 2017 “Energy storage system technology and business model”.

What is energy storage system?

Source: Korea Battery Industry Association 2017 “Energy storage system technology and business model”. In this option, the storage system is owned, operated, and maintained by a third-party, which provides specific storage services according to a contractual arrangement.

What is an EPC agreement?

EPC agreements may also provide the EPC contractor the ability to permanently “buy down” BESS project performance via payment of agreed liquidated damages, subject typically to specified minimum levels of performance required to be met or exceeded under all circumstances. Decommissioning and disposal

How long can a battery last in an ESS?

However, even at 80% capacity, the battery can be used for 5–10 more years in ESSs (Figures 4.9 and 4.10). ESS = energy storage system, kW = kilowatt, MW = megawatt, UPS = uninterruptible power supply, W = watt. Source: Korea Battery Industry Association 2017 “Energy storage system technology and business model”.

Does an EPC agreement include a decommissioning plan?

To the extent decommissioning is addressed in the EPC agreement and the obligation allocated to the EPC contractor, a specific decommissioning plan will often be attached as an exhibit to the EPC agreement.