Energy storage system epc project

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 can EPCs help the energy industry?

Supply chain constraints are reaching into every aspect of the energy industry. Consider EPCs with global procurement strength to help mitigate supply risks and ensure competitive pricing. These partners leverage bulk procurement with top-tier battery suppliers to secure supply with bankable and certified manufacturers.

How does EPC Design for arbitrage?

To design for arbitrage, owners must know how many times per day the battery will be charged and discharged, which impacts degradation. Complex financial modeling helps the EPC determine the right product and system according to these battery cycling needs. b. Energy shifting typically is paired with renewable energy to maximize production values.

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.

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.

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.