Energy Storage Off-take Contracts/PPAs

Updated to Reflect Supply Chain & IRA Impacts

May 31-June 1, 2023 | Online :: Mountain Time

0523-energy-storage-contracts

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

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

In the electric power system, energy storage is a technology like no other because of the multiple functions it performs – as a generation resource, as grid support, and as transmission or distribution infrastructure.  Consequently, the structure of off-take contracts and power purchase agreements (PPAs) employed for more traditional generating facilities do not necessarily translate to energy storage, or they lack flexibility to accommodate multiple uses. Therefore, when negotiating and forming an energy storage offtake agreement, it is critical for all parties to understand the ways in which the storage system will be used.

This storage course covers the key issues and contract provisions that need to be considered when negotiating storage projects. The course will provide a blueprint for project developers, utilities and other power off-takers to structure off-take contracts and PPAs that reduce uncertainties and maximize performance. 

Learning Outcomes

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

 

Wednesday, May 31, 2023 : Mountain Time

 

8:30 – 8:45 a.m. :: Overview & Introductions

8:45 – 10:15 a.m. :: Setting the Contractual Context 

• Background of energy storage (BESS) in the grid
  • Terminology
  • Technology comparisons
  • Trends
  • Trajectory
  • 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)

10:15 – 10:30 a.m. :: Morning Break

10:30 a.m. – 12:15 p.m. :: Setting the 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 contracting
  • Warranty and performance guarantees
  • O&M and LTSA
  • Testing and maintenance

12:15 – 1:15 p.m. :: Lunch Break

1:15 – 2:45 p.m. :: Inflation Reduction Act (IRA) Impact on Storage

• Storage project development characteristics and contracts before IRA passage
  • Grid charging requirements to reap tax benefits
  • Economic difficulties of stand-alone BESS deployment 
• Storage project development characteristics and contracts post–IRA passage
  • Background on IRA bill (what’s included, what’s been further detailed in 2023, what we still don’t know)
  • Bonus categories of IRA
  • Growth of BESS deployment
    • Has IRA had as big of an impact as anticipated?
    • Have prices really fallen?
  • Impact on offtake contracts
• RWE Case Study

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:45 p.m. :: Key Provisions for BESS Projects

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

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

 

Thursday, June 1, 2023 : Mountain Time

 

8:30 – 10:00 a.m. :: Procurement, Supply Chain, Scheduling and EPC Impacts on Storage Contracts

• Techno-Commercial Considerations of Energy Storage Contracts
  • Energy-to-tolling for PVS
  • Capacity payment adjustments
  • LDs for BESS and PVS
  • Round-trip efficiency
  • Charging/discharging profiles
  • Derate and max temperatures
  • Variable throughput/cycle banking
  • Reactive power

10:00 – 10:15 a.m. :: Morning Break

10:15 a.m. – 12:00 p.m. :: Executing Contract Terms for BESS Projects 

• Overview of project development and finance
• Contracts 101
  • Project contractual relationships
  • Drafting essentials
  • Internal consistency
  • External consistency
• Key revenue contract structures and terms

12:00 – 1:00 p.m. :: Lunch Break

1:00 – 2:45 p.m. :: Executing Contract Terms for BESS Projects (cont’d)

• Key revenue contract structures and terms
• Supply contracts terms
• Integrator agreements terms
• Balance of plant / EPC contracts terms
• O&M and long-term service contracts terms

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:30 p.m. :: Case Studies

• Lessons Learned from current contracts and/or operations
• Battery storage operational issues
• Dispatching batteries in the market
• ISO requirements for DC-specific projects 

4:30 p.m. :: Course Adjournment

Mark Brusius is the Vice President & Head of Tax for RWE Clean Energy, the US subsidiary of RWE AG based in Essen, Germany.  His team at RWE handles all areas of direct and indirect taxes for RWEs 8 GW of US 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 an BS in Accounting and MS with specialization in taxation. 

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Rocio Portela-Berrios is a Partner in the law firm Holland & Hart LLP.  She counsels clients in the energy and infrastructure industries on issues regarding project development and finance. Ms. Portela-Berrios’s background in financing of energy, infrastructure, mining, and renewable energy projects in both the U.S. and Latin America, along with her fluency in Spanish, enable her to assist clients with a diverse approach to their projects.

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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 financings, 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 offtake 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.

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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.

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Isabelle Stafford is Manager of PPAs & Structured Origination at RWE Clean Energy.  In 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 LSEs.  Ms. 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 negotiations.  In 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 technologies.  Ms. Stafford holds a B.A. in International Studies with a focus in Politics and Policy in the Global Economy and a minor in Development Economics from the University of Wisconsin-Madison. 

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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.

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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.

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Vinayak Walimbe is Vice President of Emerging Technologies (North America) at Customized Energy Solutions, which he joined in 2011. He currently leads Emerging Technologies consulting practice in North America with focus on energy storage and renewable integration. He is a Chartered Financial Analyst with extensive experience in financial modeling and advisory in US 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 Boston-based private-equity firm that invested in natural gas plants in Middle East and North Africa. Prior to that he was involved in aircraft securitization and risk analysis of structured finance products in aircraft industry. Mr. Walimbe holds a Master of Science from Georgia Institute of Technology, Atlanta, a Master of Engineering from V.J.T.I. Mumbai and an undergraduate degree in Electrical Engineering from Walchand College of Engineering, Sangli, India.

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 Off-take Contracts/PPAs

May 31-June 1, 2023 | Online

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 April 28, 2023 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

Credits

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.

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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

EUCI 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