Energy Storage Contracts & PPAs

May 31-June 1, 2023 | Denver, CO and Online

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 system, energy storage is a technology like no other because of the multiple, essential functions it performs as a generation resource, as load, and as transmission or distribution infrastructure.  Consequently, the structure of power purchase agreements (PPAs) employed for more traditional generating facilities do not necessarily translate to energy storage, or the PPA lacks 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 help keep you abreast of the importance of energy storage and how to undertake necessary initiatives in a practical and manageable way. 

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)

John Fernandes, Senior Consultant – Emerging Technologies, Customized Energy Services (CES)

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
• Types of PPAs
  • Physical
  • Virtual

John Fernandes, Senior Consultant – Emerging Technologies, Customized Energy Services (CES)

Joel Berger, Senior Consultant – Emerging Technologies, Customized Energy Services (CES) 

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

Isabelle Stafford, Manager – PPAs & Structured Origination, RWE Clean Energy 

Mark Brusius, Vice President & Head of Tax, RWE Clean Energy 

3:00 – 3:15 p.m. :: Afternoon Break

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

• Off-take contract (i.e., PPAs) 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

Brian Warshay, Principal Consultant – Energy Storage Engineering, DNV

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

Dan Clark, Energy Innovation Advisor – Renewable Generation, Arizona Public Service (APS) 

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
  • Why contracts matter
  • Risk assignment and accountability
• Contracts 101
  • Project contractual relationships
  • Drafting essentials
  • Internal consistency
  • External consistency
• Key contracts
  • PPAs
• Other key contracts
  • EPCs and integrators
  • Equipment suppliers and O&M
• Warranties

Ashley Wald, Partner, Holland & Hart

Leslie Boyle, Partner, Holland & Hart

Ryan Martin, Associate, Holland & Hart

12:00 – 1:00 p.m. :: Lunch Break

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

• Key contracts
  • PPAs
• Other key contracts
  • EPCs and integrators
  • Equipment suppliers and O&M
• Warranties

Ashley Wald, Partner, Holland & Hart

Leslie Boyle, Partner, Holland & Hart

Ryan Martin, Associate, Holland & Hart

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

Joel Berger is a Senior Consultant for the Emerging Technologies group at Customized Energy Solutions, joining the firm in 2019.  He utilizes and provides endorsement to the CoMETS asset modeling platform and evaluates various favorable opportunities for energy storage for both behind-the-meter and grid-connected applications. He also monitors and participates in ISO/RTO stakeholder processes to observe growth in market potential for energy storage, providing technical insight where possible and supplying cutting edge intelligence on storage opportunities.  Prior to coming to CES, Mr. Berger worked for an international renewable energy company participating in development, construction, operations and asset management of Energy Storage Projects in three ISO/RTOs.  He holds a M.S. degree in Mechanical Engineering from the University of Colorado, as well as a B.A. degree in Physics and Mathematics. 

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Leslie Boyle is a Partner at law firm Holland and Hart LLP.  She advises clients in a wide range of industries in connection with their commercial transactions and the development, financing, and operation of large infrastructure projects.  Her clients range from national oil and gas companies, mining companies, and independent power producers to apparel retailers and equipment manufacturers.  Ms. Boyle negotiates the contracts required for every stage of a project’s life cycle, including engineering, procurement, and construction services agreements, major equipment supply agreements, operations and maintenance agreements, master services agreements, power purchase agreements, and energy exchange agreements, and she represents clients as they buy, sell, and finance projects.  She also advises clients in the structuring and negotiation of joint ventures for the development and operation of infrastructure projects.

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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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Daniel Clark is Energy Innovation Program Consultant at Arizona Public Service.  He has experience across a broad swath of the power industry, including solar OE, design and development, energy storage development and design, as well as fossil generation and T & D.  Since 2018, he has evaluated and implemented new technologies to help improve the utility’s grid reliability, safety, and ability to accommodate more clean energy.  Mr. Clark’s current, primary efforts are on installing battery energy storage systems at both the distribution level (power quality, deferment, DER capacity) and the transmission level (resource capacity, balancing).  Prior to joining APS, he was a senior electrical engineer at Burns & McDonnell, where he had been an employee-owner for 9 1/2 years.  Mr. Clark also served 3 1/2 years at Project Controls, where he was responsible for Client Program cost control, cash flow, budget reporting, change management, contract management, material management, invoice tracking, procurement, and KPI tracking.

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John Fernandes is Senior Consultant – Emerging Technologies, Customized Energy Solutions (CES).   He joined CES after nearly 5 years in the development, construction, and IPP sectors managing policy and creating new market opportunities across renewable, fossil, transmission, and energy storage business lines.  Prior to his time in the commercial space, Mr. Fernandes was on staff at the Federal Energy Regulatory Commission and a regulatory manager for an investor-owned utility.  He has operated in every US wholesale energy market and has offered expertise in international markets, including Canada, the UK, Mexico, Australia, and Africa.  He has helped shaped policy for numerous states as well as the US Department of Energy.  Mr. Fernandes has an MBA from the University of Delaware, a Master’s in Public Health from Johns Hopkins University, and is a guest lecturer for the University of Colorado at Denver Global Energy Management Program.

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Nic Gladd is a Partner at the law firm Pierce Atwood LLP.  He represents clients in complex transactional, regulatory, and litigation matters spanning the energy industry.  Mr. Gladd is experienced in structuring and negotiating commercial agreements for energy projects and operating assets, counseling on power market design and cost-of-service ratemaking, representing clients before administrative agencies and appellate courts.  He has advised clients on some 50 energy and infrastructure transactions, representing more than $25 billion in capital. He has advised clients nationally on energy storage matters involving RTOs/ISOs, FERC, state public utilities commissions, and municipalities. Before private practice, Mr. Gladd held several high-level positions at FERC, including serving as legal advisor to FERC Chairman Kevin J. McIntyre, for whom he oversaw FERC’s landmark energy storage rulemaking, Order No. 841. Prior to joining Chairman McIntyres staff, he was a litigation attorney in FERC’s Solicitors Office, where he defended FERC in the US Court of Appeals for the DC Circuit and in US district courts.

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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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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.  Ms. Wald 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.

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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.

REGISTER NOW FOR THIS EVENT:

Energy Storage Contracts & PPAs

May 31-June 1, 2023 | Denver, CO

Buy 4 in-person seats and only pay for 3! For this event every fourth in-person attendee is free!

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