In partnership with an infrastructure private equity fund that owns a large-scale BESS operating in the California bulk power market, SGP supported historical performance analysis, operational testing, negotiation of contractual liquidated damages based on performance data, and revision of contractual exhibits related to availability and capacity guarantees for an operating BESS project.

Key elements of SGP’s support included:

• Analyzed historical asset performance data from previous years to determine availability
• Provided technical and contractual advisory support related to executing capacity tests in accordance with procedures and computing capacity test results
• Formulated an updated analytical methodology to compute availability
• Provided technical analysis and facilitated technical discussions during negotiation discussions to bring an analytical grounding to negotiation positions
• Advised on industry standards and best practices related to contract provisions focused on objectively measuring BESS availability and energy capacity
• Assisted in codifying availability and capacity test measurement methodologies into contractual language

Key outcomes included:

• A repeatable methodology and analysis tool to objectively quantify BESS performance regularly using operational data
• Revised contract technical exhibits that significantly reduced ambiguity and strengthened the analytical basis for contractual guarantees
• Successfully advanced liquidated damage discussions to a productive outcome