Domestic battery cabinet procurement

What is the general contracting structure for a battery energy storage system?

The first, and the topic of an earlier article, is the general contracting structure. Developers of battery energy storage system, or BESS, projects are using a multi-contractor, split-scope contracting structure instead of the more traditional single-contractor, turnkey approach. (See "Battery Purchase Contracts" in the December 2021 NewsWire.)

Should lithium-based batteries be a domestic supply chain?

Establishing a domestic supply chain for lithium-based batteries requires a national commitment to both solving breakthrough scientific challenges for new materials and developing a manufacturing base that meets the demands of the growing electric vehicle (EV) and electrical grid storage markets.

Should a battery procurement contract aggregate liability in a collective project?

For example, if a developer has a number of projects supplying battery storage under a single offtake contract, then it might prefer a single battery procurement contract aggregating liability in the collective project, given that liability under the offtake contract may be connected for failure to develop the collective project.

What should a developer consider when choosing a Bess battery?

Another item to consider is the use case for the BESS equipment. Each developer has a different intended use for the batteries, including charging and discharging frequency and whether batteries will be part of a standalone storage project or a larger renewable energy facility.

Are lithium-based batteries a viable industrial base?

A robust, secure, domestic industrial base for lithium-based batteries requires access to a reliable supply of raw, refined, and processed material inputs along with parallel efforts to develop substitutes that are sustainable and diversify supply from both secondary and unconventional sources.

How do I choose a utility procurement company?

Apply judgement, as no single document from another utility will address all of your needs. Review your utility’s standard procurement template to be sure it will accommodate the type of procurement and the kinds of companies that you wish to hear from. For some projects, companies with regional or local roots may provide add-on benefits.