4 FAQs about How to write the energy storage system technical agreement

What is an energy storage tolling agreement?

Under an energy storage tolling agreement, the developer of the energy storage system is responsible for obtaining site control, permits, interconnection rights, equipment, and construction contracts, as well as achieving agreed-upon milestones such as a target commercial operation date and a guaranteed commercial operation date.

Do energy storage tolling agreements restrict a developer's use of a battery?

As the energy stored in the battery belongs to the buyer, energy storage tolling agreements will often prohibit or restrict the developer's use of the storage system for station service. The inclusion of this condition requires that the developer enters into a retail service contract for the system's non-storage load.

Can a developer supply a battery energy storage system?

In this context, a developer will often seek to enter into a supply agreement for the Battery Energy Storage System ("BESS"), which will then be supplied to the civil works contractor for installation and commissioning.

Who pays for energy storage & ancillary services?

The buyer—often the utility company—pays for the electricity used to charge the energy storage system, and receives the right to charge/discharge the system for energy and ancillary services.

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