What is a battery energy storage system checklist?

Checklist provides federal agencies with a standard set of tasks, questions, and reference points to assist in the early stages of battery energy storage systems (BESS) project development.

Does a power contract cover energy storage?

There are several energy storage models, each requiring different approaches to product definitions and performance parameters. The most prevalent model appears to be storage combined with a solar project, where the two are treated as a single system. Therefore, the power contract covers both. There is a natural synergy.

What are the operational limitations of energy storage?

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.

Should energy storage units be regulated under the Federal Power Act?

The PPA will need to be clear regarding the rights to each product and service if a single offtaker will not be entitled to all of the multiple revenue streams. To date, there is a lack of clear precedent about how energy storage units are to be regulated under the Federal Power Act.

Can energy storage resources be financed on a nonrecourse basis?

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.

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.