Energy Storage (ESS) Contracts & Service Agreements

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

0624-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)

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

• as a generation resource
• as load
• 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 contracts and agreements:

• Capacity or Tolling Agreement (sometimes called an energy storage PPA )
• BESS Supply Agreement / Energy Storage Services Agreement / Energy Management Services Agreement
• Balance of Plant / EPC Agreement
• Long-term Services Agreement (LTSA or O&M agreement)

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

Thursday, June 20, 2024 : Central Time

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)

Andreas Sakellaris, Director – Emerging Technologies, 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

Andreas Sakellaris, Director – Emerging Technologies, Customized Energy Solutions

12:30 – 1:15 p.m. :: Lunch Break

1:15 – 3:00 p.m. :: Translating Key Provisions of Storage Contracts and Service Agreements into Operational Terms

• 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

Brian Warshay, Principal Consultant – Energy Storage Engineering, DNV

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:45 p.m. :: Externalities that Influence Energy Storage Contracts and Services Agreements

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

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

 

Friday, June 21, 2024 : Central Time

 

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

Ashley Wald, Partner, Holland & Hart LLP

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 2:45 p.m. :: The Balancing Act Between Commissioning, Operational Performance, and Warranties in Energy Storage Contracts and Services 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

2:45 p.m. :: Course Adjournment

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.

---

Andreas Sakellaris is Director of Emerging Technologies (East) at Customized Energy Solutions. He joined CES in 2023 and is an energy expert in bringing complex energy projects to fruition in diverse and challenging environments across the world. Mr. Sakellaris has closed $1.5B worth of PPA transactions for power deals in 20 countries through Telkes, the energy advisory firm he founded. Although most of these deals were in the US and Europe, He also negotiated PPAs written in Spanish (Latin America & Spain), Portuguese (Brazil) and French (France and Belgium). Previously he worked for Holcim, Bain & Company, Schlumberger and energy startups Aqylon and LevelTen. Mr. Sakellaris has a Bachelor’s degree in Chemical Engineering from Princeton and a Master’s degree in Renewable Energy Science from Ecole Polytechnique.

---

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.

---

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.

---

Will McNamara serves as Grid Energy Storage Policy Analyst for Sandia National Laboratories with a focus on energy storage policy development at the federal and state levels.  He has spent his entire 30-year career in the energy and utilities industry with a concentration on regulatory and legislative policy. Mr. McNamara has served as a lobbyist in California and has represented major utilities across the U.S. in numerous jurisdictions in proceedings pertaining to integrated resource planning, procurement, cost recovery, rate design, and the development of policymaking best practices. He is also now leading the development of a DOE-funded Long Duration Energy Storage (LDES) National Consortium, that will create a forum for industry stakeholders to convene and develop consensus-based recommendations to chart a pathway to commercialization for LDES technologies over the next decade. Mr. McNamara’s areas of subject matter expertise, in addition to energy storage policy, include distributed energy resources, AMI/smart grid, renewables, and competitive retail markets.

---

 

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.

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

June 20-21, 2024 | 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 May 17, 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

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.

---

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