Description

TABLE OF CONTENTS

Executive summary (2)

New regulations and initiatives discussed this month (5)

Americas (5)

United States (5)

Australia & Oceania (5)

Australia (5)

Europe (5)

United Kingdom (5)

Project updates and announcements (6)

Overview of the 2020 market for utility-scale energy storage projects (6)

Projects announced or contracted this month (7)

Projects commissioned this month (8)

Americas (9)

Tenders this month (9)

Americas (9)

Focus of the month: Energy storage contractual arrangements (10)

Categorizing contractual arrangements for storage (10)

Comparing PPAs and service agreements (12)

Navigating through the vast choice of maintenance and guarantee options can be challenging and requires a project-specific approach (15)

A. Ensuring the right useable capacity during project lifetime (16)

B. Choosing the O&M contract that fits the buyer’s risk tolerance (19)

TABLE OF FIGURES

Figure 1. Utility-scale energy storage projects announced/contracted and commissioned in 2019 and 2020 (ongoing) (6)

Figure 2. Projects awarded under SCE's latest procurement round (7)

Figure 3. Contractual models for privately-owned storage systems (11)

Figure 4. Pros and cons of proposed contractual arrangements for the utility / system (13)

Figure 5. Pros and cons of both storage contractual arrangements for the private investor (13)

Figure 6. Comparison of OPEX vs CAPEX discounted costs for 2 maintenance level scenarios (16)

Figure 7. Example of a degradation curve provided by manufacturer based on use profile (17)

Figure 8. Example of a battery augmentation strategy for a capacity maintenance contract (18)

Figure 9. Overview of typical maintenance operations associated with different service levels (19)

Figure 10. Key-elements in the elaboration of a performance guarantee (21)

Figure 11. Guarantee indicators corresponding to various levels of risk protection (21)