Battery Energy Storage Systems: Procurement, Tax Equity, Financing Options, Owner and Offtaker Requirements
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Energy
- event Date
Thursday, March 13, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will provide energy counsel guidance on the procurement, financing, and regulatory challenges in deal structures for battery energy storage systems (BESS). The panel will discuss recent developments in BESS procurement; effective deal structures for financing, tax equity, owner and offtake requirements; and how the regulation of BESS is rapidly evolving, using California as a model.
Mr. Hollingsworth's practice focuses on the representation of owners and developers in their construction projects, including renewable facilities, distributed energy projects, liquefied natural gas (LNG) facilities, power plants and petrochemical facilities. He has experience with drafting engineering, procurement and construction (EPC), construction, construction management, engineering, operating and maintenance, long-term service agreements and procurement agreements for projects throughout the world. Prior to becoming an attorney, Mr. Hollingsworth was an engineer at a global energy company, where he focused on the development of large scale capital projects. Nearly three of his years at the company were spent working in Papua New Guinea developing a gas processing facility. He has extensive knowledge on project execution, project controls, HSSE and construction management.
Mr. Holmes focuses his practice in the area of energy and infrastructure projects and transactions with an emphasis on wind energy, solar energy, hydroelectric power, geothermal, biomass, natural gas, carbon offsets, and energy storage. His experience extends into corporate transactions, water law, and real estate law. Mr. Holmes also advises clients in negotiating major power purchase agreements, acquisition and sale of energy projects, EPC agreements, O&M agreements, fuel supply, and energy project development agreements.
The procurement and development of BESS have been on the rise and can provide many benefits and play many roles. Still, they don't always fit neatly into a familiar legal landscape within the renewable energy sector. Counsel must develop a complete understanding of the regulatory challenges, financing options, and deal structures to minimize risks along with key tax considerations for the development or procurement of battery energy storage.
The continued success of renewable energy for electrical power depends on the effective management of the variable output of wind, solar, and other alternative energy resources. Storing energy for later use when production is low is an essential element of managing electrical systems. This fact has garnered a wave of battery-energy storage project financings and increased utility procurement of battery storage projects.
Battery energy storage systems can store energy in a chemical form and be configured for large amounts of power into the grid in a short period or inject a steady amount of power into the grid for an extended amount of time, depending on their intended application. They can also be used as backup power to a connected load demand source. However, these energy systems are riddled with legal, regulatory, financial, and other risks.
Developers, investors, and lenders intending to take advantage of the need for energy storage must be aware of various legal, regulatory, and financing issues associated with BESS.
Listen as our panel discusses key compliance challenges impacting energy storage, effective deal structures for financing, tax equity, owner and offtake requirements, and mitigating risks for BESS projects.
- Recent developments in BESS financing and procurement
- Contract structures and related issues
- Tax considerations in deal structures
- Regulatory obstacles and how to avoid them
- Best practices for BESS compliance
The panel will review these and other key issues:
- Recent developments in the procurement of BESS
- Negotiating and structuring energy storage projects
- Procurement of utility-owned battery projects
- Challenges and solutions in financing battery projects
- The evolving regulatory environment around grid-connected battery systems, emphasizing the California experience
