4 FAQs about Large-scale government procurement of outdoor energy storage cabinets

Are energy storage projects a meter utility scale project?

The majority of new energy storage installations over the last decade have been in front of the meter utility scale energy storage projects that will be developed and constructed pursuant to procurement contracts entered into between project developers (or a special-purpose project company owned by such developers) and the utilities.

What are energy storage procurement contracts?

Energy storage procurement contracts must also take into account the ever-evolving suite of laws and regulations applicable to energy storage projects, including as a result of the recent change in administration in the United States.

Why is California establishing a strategic reserve for gas generation?

California has enacted legislation to create a strategic reserve for capacity, whereby existing out-of-market gas-fired generation are being kept online to ensure grid reliability until such time as sufficient energy storage and other resources can be brought online.

What are energy storage contracts?

These contracts allocate the risks of project development, construction, and performance between the parties and include the price that will be paid by the utility for the resource or the energy storage services that are to be provided.

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