Manama solar energy storage cabinet scalable procurement contract

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4 FAQs about Manama solar energy storage cabinet scalable procurement contract

Can energy storage resources be financed on a nonrecourse basis?

Key Finance-ability Provisions: Energy storage resources may also be financed on a nonrecourse basis and, like any other project financed in such manner, will need to address issues upon which nonrecourse lenders will focus, including assignment, events of default, performance requirements, key dates, and collateral.

What is a PPA for new energy storage resources?

Some PPAs for new energy storage resources have been structured as capacity-only contracts in which the developer is responsible for the sale of energy and all costs associated therewith—including the costs of the required energy procured from the utility.

Are solar manufacturers circumventing antidumping and countervailing duty orders?

The solar market was further constrained by an ongoing petition before the US Department of Commerce alleging that certain solar manufacturers in Southeast Asia were circumventing antidumping and countervailing duty (AD/CVD) orders on solar cells and modules from China.

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

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Key Considerations for Utility-Scale Energy Storage Procurements

Moreover, if the energy storage system is being paired with a renewable energy resource, whether on a hybrid or a co-located basis, then the procurement contracts will need to address