How to write the epc for energy storage work plan

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.

Can a Bess project be financed without a full-wrap EPC agreement?

That said, as the project finance market for BESS projects is still developing and equity remains the more typical source of financing, alternatives to the full-wrap, turnkey EPC agreement have been utilized on BESS projects, largely to reduce equipment procurement costs to the owner.

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 an EPC agreement?

EPC agreements may also provide the EPC contractor the ability to permanently “buy down” BESS project performance via payment of agreed liquidated damages, subject typically to specified minimum levels of performance required to be met or exceeded under all circumstances. Decommissioning and disposal

What should you look for in an EPC?

Look for EPCs that offer a technology-agnostic approach to deliver customized systems that meet all codes and standards (UL, NFPA, and fire codes), and that are backed by proven track records in the U.S. market. Some EPCs are integrated into larger energy solutions providers to extend a broader offering.