Strategic procurement plan for energy storage companies

Why is an energy procurement plan necessary?

Thus, a specified procurement plan is necessary. Effective energy procurement is essential for any organization that relies heavily on energy, as it helps manage risk while alleviating certain operational demands throughout your organization. Why is an energy procurement plan essential?

How do you develop a strategy for energy procurement?

Provide time for you to examine or negotiate proposals. A strategy for energy procurement should analyze pertinent internal corporate information, its budget requirements, any legislative or policy requirements, and information on supply and consumption—more on this later.

What are the challenges of procurement for utility-side storage & solar-plus projects?

The challenges of procurement for utility-side storage and solar-plus projects center largely on early-stage decisions: defining the top-priority use case, but also exploring ways to get more value out of the project and to prepare for market changes over its life.

How important are relationships with suppliers in energy procurement?

Relationships with suppliers constitute a substantial portion of the energy procurement procedure. How you interact with suppliers significantly impacts operational and cost efficiency; therefore, establishing confidence and credibility with your suppliers is essential.

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.