About Energy storage sales plan scheme epc
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6 FAQs about [Energy storage sales plan scheme epc]
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.
How do energy storage contracts work?
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.
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.
What is an EPC agreement containing Bess project performance guarantees?
An EPC agreement containing BESS project performance guarantees will contain detailed testing procedures as well as provisions for liquidated damages in the event that a constructed BESS project is unable to pass applicable performance testing.
Will energy storage save the energy industry?
It’s generation . . . it’s transmission . . . it’s energy storage! The renewable energy industry continues to view energy storage as the superhero that will save it from its greatest problem—intermittent energy production and the resulting grid reliability issues that such intermittent generation engenders.
Should energy storage decommissioning plans be flexible?
Given the evolving nature of rules and standards for the decommissioning, disposition and/or recycling of energy storage projects, it is recommended that any such decommissioning plans retain a reasonable degree of flexibility to accommodate potential changes to such rules and standards after the date of execution of the EPC.
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