How to sign an intermediary contract for an independent energy storage project

What is an energy storage tolling agreement?

Under an energy storage tolling agreement, the developer of the energy storage system is responsible for obtaining site control, permits, interconnection rights, equipment, and construction contracts, as well as achieving agreed-upon milestones such as a target commercial operation date and a guaranteed commercial operation date.

Does a power contract cover energy storage?

In the context of a solar project, the power contract covers both the solar and energy storage systems, as they are typically treated as a single system. There is a natural synergy between the two.

What is the best practice guide for energy storage projects?

This Best Practice Guide covers eight key aspect areas of an energy storage project proposal. This Guide documents the industry expertise of leading firms, covering the different project components to help reduce the internal cost of project development and financing for both project developers and investors.

Do energy storage tolling agreements restrict a developer's use of a battery?

As the energy stored in the battery belongs to the buyer, energy storage tolling agreements will often prohibit or restrict the developer’s use of the storage system for station service. The inclusion of this condition requires that the developer enters into a retail service contract for the system’s non-storage load.

What is the advancing contracting in Energy Storage Working Group?

The Advancing Contracting in Energy Storage (ACES) Working Group is an independent industry led and funded effort founded to develop a best practice guide for the energy storage project development community.

Should a PPA be used in energy storage contracts?

While several provisions of these PPAs are appropriate for energy storage contracts, there are issues unique to energy storage that warrant special consideration. This article discusses 10 issues that deserve careful analysis when drafting offtake contracts for energy storage facilities.