Procurement support for energy storage procurement
SGP advised Kearsarge Energy as they established multiple contract relationships with ESS suppliers – supporting technology procurement, project construction, and long-term dispatch and warranty services.
Energy storage contracting involves numerous important elements that make it more complex to contract when compared to other assets such as solar. Important contractual elements for energy storage include:
- Performance guarantees that assure energy capacity while enabling flexible use of the asset
- Tariff risk allocation
- Energy capacity degradation considerations including replenishment planning
- The integration risk of assembling several key components from different suppliers
- Fleet software versus site performance considerations
- Bankability of a diverse and global supply chain
- Sharing value and risk while performing uncertain market functions
- Coordination between an ESS equipment supplier and an EPC firm, including schedule and performance liquidated damages
SGP has experience on the latest techniques and benchmarks for these aspects of ESS contracting.