Energy Storage (ESS) Contracts & Service Agreements

Energy Storage (ESS) Contracts & Service Agreements

March 20-21, 2024 | Online :: Central Time

“Seminars provide a high-level overview for current industry challenges.” Manager of Power Supply, Wolverine Power Cooperative

“Simply superb course.” Project Manager, Soltec (USA)

The structure of off-take contracts and power purchase agreements (PPAs) employed for renewable energy generating facilities do not necessarily translate to energy storage – or, they lack flexibility to accommodate a battery energy storage’s (BESS) multiple uses.  Therefore, when creating and negotiating the multiple off-take contracts and energy storage services agreements, it is critical for all parties to understand the way(s) in which the storage system will be used:

  • as a generation resource
  • as grid support
  • as transmission or distribution infrastructure

This course covers the key issues and provisions that need to be considered when negotiating these energy storage off-take contracts and services agreements:

  • Capacity or Tolling Agreement (sometimes known as PPAs )
  • BESS Supply Agreement / Energy Management Services Agreement / Energy Storage Services Agreement
  • Balance of Plant / EPC Agreement
  • Long-term Services Agreement (LTSA)

The program will provide a blueprint for project developers, utilities, and other power off-takers to structure their off-take contracts and service agreements to reduce uncertainties and maximize performance of their energy storage deployment. 

Learning Outcomes

  • Review the key issues and contract provisions for energy storage projects 
  • Examine the energy storage functions as they relate to ESSAs and off-take contracts 
  • Explain contract negotiations, contracting parties and operations management
  • Evaluate how a stuttering supply chain and clogged interconnection queues influence the energy storage services ESSAs and off-take contracts
  • Discuss how the various policy and institutional drivers for energy storage need to be addressed in ESSAs and energy storage off-take contracts
  • Identify how the storage-specific aspects of the Inflation Reduction Act (IRA) require contractual refinements

Agenda

Wednesday, March 20, 2024 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:30 – 1:15 p.m.
Lunch Break

9:00 a.m. – 4:45 p.m.
Course Timing

9:00 – 9:20 a.m. :: Overview & Introductions

9:20 – 10:45 a.m. :: Setting the Energy Storage Services (ESSA) and Off-take Contractual Context 

  • Background of energy storage (BESS) in the grid
  • Terminology
  • Technology comparisons
  • Trends
  • Industry trajectories
  • Co-location vs. hybrid vs. standalone operation
  • Supply chain dynamics and uncertainty
  • Storage deployment scenarios
  • As wires (transmission)
  • As generation
  • As grid support
  • Project development and transaction landscape
  • Players and roles
  • Competitive market evaluation
  • Decision – build, buy or rent (PPA)

Vinayak Walimbe, Vice President – Emerging Technologies N.A., Customized Energy Solutions

10:45 – 11:00 a.m. :: Morning Break

11:00 a.m. – 12:30 p.m. :: Setting the Energy Storage Services (ESSA) and Off-take Contractual Context   (continued)

  • Key storage metrics
    • Capital cost/life trends
    • Modeling inputs
  • Market applications
    • ISO/RTO wholesale electricity market values
    • Hybrid and co-located storage
  • Performance components of storage contracts – operations and optimization
    • Warranty and performance guarantees
    • O&M and LTSA
    • Testing and maintenance
  • Types of off-take contracts and service agreements
    • Capacity or Tolling Agreement / PPA
    • BESS Supply Agreement / Energy Management Services Agreement (EMSA) / Energy Storage Services Agreement / ESSA
    • Balance of Plant / EPC Agreement
    • Long-term Services Agreement (LTSA) / O&M

Vinayak Walimbe, Vice President – Emerging Technologies N.A., Customized Energy Solutions

12:30 – 1:15 p.m. :: Lunch Break

1:15 – 3:00 p.m. :: Key Provisions for BESS Projects that Influence Energy Storage Services (ESSA) and Off-take Contracts and Service Agreements

  • Off-take contract and ESSA key provisions
  • Managing the division of responsibilities between EPC and BESS supply contracts
  • Energy storage contract interactions between:
    • Off-take
    • Interconnection
    • EPC
    • BESS supply
    • O&M
  • Evaluating BESS O&M, aka long-term service agreements (LTSAs)
  • Importance of distinguishing between BESS maintenance vs. BESS operations
  • Assessing performance guarantees and warranties
  • Quantifying liquidated damages

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:45 p.m. :: The Balancing Act Between Commissioning, Operational Performance, and Warranties in Energy Storage Off-take Contracts and Service Agreements

  • Battery storage operational issues
  • Lessons learned from current contracts and/or operations
  • ISO/RTO regulations and market structures
  • Dispatching batteries in the market vs. warranty project operating assumptions

Panel Discussion

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

 

Thursday, March 21, 2024 : Central Time

8:45 – 9:00 a.m.
Log In

12:15 – 1:00 p.m.
Lunch Break

8:30 a.m. – 4:30 p.m.
Course Timing

 

9:00 – 10:30 a.m. :: Energy Storage Off-take Contract and Terms

  • Overview of project development and finance
    • Contract considerations
    • Key off-take contract structures
    • Key contract terms
      • Payment structures
      • Performance testing and guarantees
      • Conditions precedent
      • Development milestones, delays, and damages
      • Force majeure
      • Change of law
      • Credit support
      • Events of Default
      • Assignability

    Rochelle Rabeler, Partner, Holland & Hart LLP

    Ying Wang, Of Counsel, Holland & Hart LLP

    10:30 – 10:45 a.m. :: Morning Break

    10:45 a.m. – 12:15 p.m. :: Executing Energy Storage Supply and Services Agreements

    • Supply contracts terms
    • Integrator agreements terms
    • Balance of plant / EPC contracts terms
    • O&M and service contracts terms

    12:15 – 1:00 p.m. :: Lunch Break

    1:00 – 2:45 p.m. :: Impact of the Inflation Reduction Act (IRA) on Energy Storage Off-take Contracts and Services Agreements

    • Storage project development characteristics and contracts pre-IRA
    • Storage project development characteristics and contracts post-IRA

    Isabelle Stafford, Manager – PPAs & Structured Origination, RWE

    Mark Brusius, Vice President & Head of Tax, RWE

    2:45 – 3:00 p.m. :: Afternoon Break

    3:00 – 4:30 p.m. :: Externalities that Influence Energy Storage Off-take Contracts and Services Agreements

    • Procurement
    • Supply chain
    • Scheduling
    • Interconnection queues
    • EPC impacts on storage contracts

    Panel Discussion

    4:30 p.m. :: Course Adjournment

    Instructors

    Mark Brusius is the Vice President & Head of Tax for RWE Clean Energy, the U.S. subsidiary of RWE AG based in Essen, GermanyHis team at RWE handles all areas of direct and indirect taxes for RWEs 8 GW of U.S. operating projects. Mr. Brusius works on a wide variety of planning and compliance items, though is heavily involved on both the initial structuring and ongoing maintenance of tax equity partnerships for RWEs wind and solar/BESS facilities. Section 45 and 48 credits (along with new IRA credits) are areas of significant focus and experience. Before joining RWE (formerly E.ON), Mr. Brusius was a Tax Manager for KPMG, LLP based in Chicago. He has a BS in Accounting and MS with specialization in taxation. 


    Rochelle Rabeler is a partner at the law firm Holland & Hart.  She counsels developers, investors, sponsors, and independent power producers in connection with wind, solar, storage, and other energy projects throughout the U.S., varying in size from 100 kW to 1000+ MW. Ms. Rabeler works with both buyers and sellers, guiding them through each nuance of project development contracts, mergers and acquisitions, and debt and equity financing, including ISDA and other hedge and swap agreements. She specializes in power purchase agreements (PPAs) and has extensive experience representing parties in the negotiation of traditional physical off-take PPAs and also financial and virtual PPAs or contracts for differences. To date, Ms. Rabeler has supported clients successfully negotiate and execute corporate PPAs for wind and solar projects totaling more than 2 GW in the aggregate.


    Peter Richmond is Of Counsel at the law firm Holland & Hart. He supports developers, utilities, and investors capitalize on renewable energy project opportunities driving the clean energy economy. Mr. Richmond has extensive experience with the development and financing of solar, wind, and storage projects, as well as emerging climate technologies such as hydrogen-based storage, green hydrogen, and direct carbon capture. Before joining Holland & Hart in 2023, he practiced at Orrick, Herrington & Sutcliffe LLP in San Francisco. He earned a bachelor’s degree in economics from the University of North Carolina and a master’s degree in environment and resources from Stanford University, where he also completed his law degree.


    Isabelle Stafford is Manager of PPAs & Structured Origination at RWE Clean EnergyIn that role, she is responsible for origination efforts in WECC and CAISO, the company’s renewable projects, and engages with customers ranging from retailers and local municipalities to large LSEsMs. Stafford is responsible for managing the contracting process for RWE’s development projects through PPAs and other types of energy contracts. Her experience ranges from initial project marketing through PPA negotiationsIn a prior role as a Senior Analyst on the Origination team, she supported the team of originators in North America, targeting the needs of large corporate and institutional customers across all regions and technologiesMs. Stafford holds a B.A. in International Studies with a focus on Politics and Policy in the Global Economy and a minor in Development Economics from the University of Wisconsin-Madison. 


    Vinayak Walimbe is Vice President of Emerging Technologies (North America) at Customized Energy Solutions, which he joined in 2011.  He currently leads the Emerging Technologies consulting practice in North America with a focus on energy storage and renewable integration. He is a chartered financial analyst with extensive experience in financial modeling and advisory in U.S. and international markets. His focus is on techno-commercial analysis of energy storage projects, strategy consulting and investment analysis of emerging technologies.  Previously, Mr. Walimbe was Manager at a Boston-based private-equity firm that invested in natural gas plants in the Middle East and North Africa. Prior to that he was involved in aircraft securitization and risk analysis of structured finance products in the aircraft industry. Mr. Walimbe holds a Master of Science degree from Georgia Institute of Technology, a Master of Engineering degree from V.J.T.I. Mumbai and an undergraduate degree in Electrical Engineering from Walchand College of Engineering (India).


    Ying Wang is Of Counsel at the law firm Holland & Hart.  She is an experienced and trusted advisor to energy and resources clients, guiding them through project development and finance and general corporate matters.  Ms. Wang has extensive energy industry knowledge, bolstered by her academic background in science and technology. She assists energy clients in all stages of project development and finance, as well as supporting them in structuring strategic transactions and contract negotiations.  Before joining Holland & Hart, Ms. Wang worked in-house at a renewable energy company and served as an associate at two Am Law 100 firms in Washington, DC and Texas.


    Brian Warshay is a Principal of the Energy Storage Engineering section and Team Lead for Energy Storage Independent Engineering at DNV.  He has more than a decade of experience researching and evaluating and developing large-scale behind-the-meter and front-of-meter energy storage and electric vehicle projects that incorporate wholesale energy market revenues.  Mr. Warshay has worked with utilities and retailers to develop VPPs and procure energy storage and electric vehicles for a variety of grid services. At DNV, he supports project work that incorporates project and product financial and contractual analysis and retail rate policy assessment. He also works with clients developing strategies to incorporate energy storage and electric vehicles into their portfolios and those entering new markets with storage products.   Mr. Warshay’s team has led or supported the due diligence of some 1.5 GWh of standalone and hybrid energy storage projects in North America totaling in excess of $1bn in equity and debt financing transactions.


     

    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 (ESS) Contracts & Service Agreements

    March 20-21, 2024 | Online
    Individual attendee(s) - $ 1295.00 each

    Volume pricing also available

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

    Pack of 5 attendees - $ 5,180.00 (20% discount)
    Pack of 10 attendees - $ 9,065.00 (30% discount)
    Pack of 20 attendees - $ 15,540.00 (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 February 16, 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 1.3 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 conference to be eligible for continuing education credit.

    Instructional Methods

    Case studies and PowerPoint presentations will be used in this program.


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

    Course CPE Credits: 15.0
    There is no prerequisite for this Course.
    Program field of study: Specialized Knowledge
    Program Level: Basic
    Delivery Method: Group Internet Based
    Advanced Preperation: 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

     

     

    Who Should Attend

    Individuals working in the following areas will benefit from attending this event:

    • Distributed level renewable energy project developers
    • Grid level renewable energy project developers
    • Utility management
    • Technical staff
    • Regulators
    • RTOs/ISOs
    • Consultants
    • Equipment manufacturers
    • Renewable systems
    • Solicitation / Procurement staff
    • Resource Planning staff
    • Transmission staff
    • Distribution staff
    • Regulatory staff
    • Storage vendors

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