Energy storage procurement contracts must also take into account the ever-evolving suite of laws and regulations applicable to energy storage projects, including as a result of the recent change in administration in the United States.
There are primarily three types of agreements relevant to battery procurements: (1) purchase agreements, (2) master supply agreements (MSAs), and (3) capacity reservation agreements (CRAs).
Delays in the procurement of batteries could lead to failures to comply with regulatory mandates, or, for utilities opting to install storage as non-wires alternatives in place of other system upgrades, the failure to implement necessary system improvements.
When developing an energy storage project, a project owner can engage an EPC contractor to provide a fully-wrapped EPC agreement that will encompass the procurement, installation, and commissioning of batteries. In many cases, however, owners will contract directly with battery suppliers for battery supply and commissioning.
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