Key Considerations for Utility-Scale Energy Storage Procurements
Some PPAs for new energy storage resources have been structured as capacity-only contracts in which the developer is responsible for the sale of energy and all costs
Some PPAs for new energy storage resources have been structured as capacity-only contracts in which the developer is responsible for the sale of energy and all costs
This legally binding contract is formed between energy producers and energy purchasers, providing a framework for purchasing energy produced from a storage system or a
Describe the structure of the project in detail. In particular, please describe what entity will own the system, what entity will purchase what commodity (e.g., energy, capacity, a completed
Learn about the essential elements of a solar RFP; receive introductory guidance on how to evaluate any proposals received; and be directed towards tools, resources, and
Decide whether to include solar + storage projects in a procurement based on storage benefits for addressing energy cost savings and/or resilience use cases at specific sites.
PDF version includes complete article with source references. Suitable for printing and offline reading.
For this guide, “solar energy agreement” will refer to the document or documents that work together to govern the relationship between the landowner and the party (or parties) constructing and operating the solar power project. These agreements are sometimes called “solar leases,” “solar easements,” or “solar power contracts.”
Solar power purchase agreements are gaining popularity because they remove the biggest barrier to entry – the price tag of solar. Solar PPAs are popular because they can be structured with minimal upfront capital costs to the business owner.
For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.
When offered a solar energy agreement, remember attorneys working for the solar energy developer drafted the agreement. The attorneys’ professional obligation was to prepare an agreement that was as favorable as possible for their client – the developer, not you.