Energy Storage M&A and Project Development Due Diligence

Energy Storage M&A and Project Due Diligence

February 6-7, 2024 | Online :: Central Time

Energy storage at the “utility scale” has achieved commodity status.  Storage assets and portfolios are now routinely bought and sold.  Almost ubiquitously, storage is a component of most solar projects.  Therefore, systematic due diligence for energy storage M&A transactions and project development is essential.

This Energy Storage M&A And Project Development Due Diligence event will lay out the general framework by which energy storage assets and portfolios are financially evaluated and transacted.  Energy storage investors, sponsors, project developers, utilities/load-serving entities, integrators and EPCs will derive actionable insights from subject matter experts on the following energy storage M&A dimensions:

  • Transaction framework
  • Context and landscape
  • Commercial benchmarks
  • Asset performance metrics
  • The impact of externalities such as the supply chain
  • Assigning value to contract terms for BESS assets, portfolios and M&A transactions

Learning Outcomes

  • Review the fundamental financial components of energy storage M&A 
  • Examine the underlying risk factors that impact the value of energy storage M&A
  • Evaluate fleshed-out energy storage M&A terms
  • Assess the relationship between energy storage, performance, price and value
  • Discuss energy storage M&A contractual elements
  • Evaluate energy storage M&A and project development commercial benchmarks
  • Examine the impact of externalities on energy storage M&A and project development

Agenda

Tuesday, February 6, 2024 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

 

9:00 – 9:15 a.m. :: Overview & Introductions

9:15 – 10:45 a.m. :: Energy Storage M&A Market and Project Development Context

  • M&A transaction types and counterparties
  • M&A transactions (deals) landscape view
  • Market(s) characteristics and variations
    • Products and services
    • ISOs/RTOs by service territory
    • Non-organized markets and unaffiliated balancing areas
    • Corporate contracts and PPAs
  • Distinction by technologies
    • Lithium Ion
    • Non-Lithium Ion
  • M&A transaction project stages
    • Ready-to-build (RTB)
    • Commercial operation date
    • Executable interconnection agreements
    • Project pipeline

10:45 – 11:00 a.m. :: Morning Break

11:00 a.m. – 12:15 p.m. :: Energy Storage M&A Transaction and Project Development Framework

  • Classes of prospective storage transaction entities and objectives
    • Investors
    • Sponsors
    • Project developers
    • Utilities/load-serving entities
    • Integrators
    • EPCs
  • Bases for Evaluation
    • Development stage
    • Site
    • Interconnection
    • Environmental and permitting
    • Technology/safety
    • Schedule
    • Revenue
    • Market risk
    • Operation
    • Major agreements: supply, EPC LTSA, offtake
    • Capex/opex
    • Extreme weather risks
  • Asset Performance Metrics
    • Capacity
      • Degradation expectations?
      • Overbuild
      • Augmentation or replacement?
      • Useful life?
    • Availability
    • Round-trip efficiency
    • Minimum/maximum charging and discharging cycles, ramp rates and response times
    • Performance testing

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 2:45 p.m. :: Energy Storage M&A and Project Development Commercial Benchmarks

  • Off-take/tolling agreements in place
  • Typical commercial structures that govern BESS usage and monetization
  • How to value storage project and market earnings
  • Trajectory of asset value as more storage comes online
  • Relationship of storage assets to solar (and other) hybrid/co-located assets
  • Risk profile and exposure
  • Return (IRR) opportunities
  • Operating aspects that add asset value
    • Size of asset or portfolio transaction
    • Duration
    • Ancillary services
    • DA vs. RT markets
  • Augmentation opportunities and constraints

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:45 p.m. :: The Impact of Externalities on Energy Storage M&A and Project Development

  • Supply chain
  • Interconnection queue and process
  • Market congestion
  • Tariffs
  • Customs
  • Interest rates
  • IRA impacts
    • Solar-requirement restriction removed
    • Domestic content adder
    • Transferability and direct-pay optionalities

4:45 p.m. :: Course Adjourns for Day

 

Wednesday, February 7, 2024 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:15 p.m.
Course Timing

 

9:00 – 10:30 a.m. :: Contract Terms for BESS that Affect M&A Transactions and Project Development

  • Basics across contracts
    • Goals
    • Drafting matters
    • Consistency
  • Distinctions between standalone and hybrid contracts, products and revenue streams
  • Development and completion risk
    • Development milestones
    • Performance delay and shortfall damages
    • Permissible delays
    • Force majeure
    • Buyer and seller security provisions
    • Events of default
    • Performance testing and performance guarantees
  • Operational risks
    • Curtailments
    • Warranties
    • Change of law
    • Assignability and off-taker options
  • Conditions precedent to effectiveness
  • Definitions

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: Assigning Value to Contract Terms for BESS that Affect M&A Transactions and Project Development

  • Performance testing
  • Purpose and control
  • Performance-based adjustments
  • Revenue meters
  • RECs
  • Curtailments
  • Conditions precedent to effectiveness
  • Development milestones
  • Definitions
  • Performance delay and shortfall damages
  • Permissible delays
  • Force majeure
  • Buyer and seller security provisions
  • Events of default
  • Change of law
  • Assignability and off-taker options

12:15 p.m. :: Course Adjournment

Instructors

Nicolas Muszynski is Vice President of Energy Storage Development at RES, where he has worked since 2008.  Before moving to this current position in late 2021, for the previous several years he served as Director of Energy Storage as well as Senior Development Manager for Renewables and Transmission and Development Manager of Wind Energy.  Prior to joining RES Americas, he was Development Manager at Wind Energy at Airtricity (acquired by E.ON Climate and Renewables) and Project Analyst at AWS Truewind. He started his career at Helimax Energie (acquired by DNV-GL  Renewables) as a Wind Energy Project Engineer. He earned a Bachelor of Engineering (B.Eng.) degree in Engineering Physics at Universite de Montreal  Ecole polytechnique de Montreal.


Nellie Tong is a Principal Consultant and Team Lead for Energy Storage M&A at DNV.  She has more than two decades of experience in the energy and utility industry. Ms. Tong has led several multi-year projects that require cross-disciplinary analytics and extensive stakeholder engagement. Her project experience includes distributed resource planning (DRP), DER potential studies and emerging technology R&D. She serves as the lead consultant in numerous storage and renewables projects that range from market assessment, strategy development and technical due diligence.  Since 2021, Ms. Tong has managed technical due diligence for some 10 GWh of storage M&A transactions – valued at more than $2 billion – in DNV’s role as the buy-side independent engineer.  She is a graduate of Swarthmore College.


Ashley Wald is a Partner in the law firm Holland & Hart LLP.  She provides guidance to clients in the solar, wind, hydropower and natural gas industries as they develop energy projects and related infrastructure across the United States.  She negotiates power purchase agreements on behalf of clients seeking to buy renewable power, including municipal utilities and electric cooperatives, and she is uniquely positioned to provide insights and strategic solutions based on her experience sitting on both sides of the negotiating table.  In addition, Ms. Wald counsels clients in the purchase and sale of energy project assets and project companies.


Uday Guntupalli is Product Manager at DNV, where his focus is building the platform for merchant energy storage modeling.  Before joining the firm, he served in roles as Senior Project Engineer at RWE Renewables and Senior Consultant at Nexant.  Previously, he spent about 6 1/2 years at First Solar as an Analytics Engineer II and PVS Technical Application Developer.  He earned a BS degree in Electrical Engineering at RVR & JC College of Engineering and a MS degree in Electrical Engineering at Missouri University of Science & Technology.

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Energy Storage M&A and Project Due Diligence

February 6-7, 2024 | Online
Individual attendee(s) - $ 1195.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)
Pack of 10 attendees - $ 8,365.00 (30% discount)
Pack of 20 attendees - $ 14,340.00 (40% discount)

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before January 05, 2024 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

CEUs

Credits

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.9 CEUs for this event

Requirements For Successful Completion Of Program  

Participants must log in each day and be in attendance for the entirety of the course to be eligible for continuing education credit.  

Instructional Methods 

PowerPoint presentations and classroom discussion will be used in this course for each learning outcome.  


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 11.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

 

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