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
- work Practice Area
Energy
- event Date
Tuesday, October 12, 2021
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
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.
Faculty

Mr. Walters practices in Stoel Rives’ Energy Development group. He is a seasoned transactional, commercial and project lawyer who has provided legal counsel to a variety of clients in the renewable energy, battery energy storage, wind, solar photovoltaic, telecommunications, manufacturing, water, and design and construction industries. Mr. Walters has broad U.S. and international transactional experience that includes EPC, O&M, equipment supply (WTG/BESS/PV), M&A, debt financings, project development, SaaS, intellectual property, solar and storage leases and power purchase agreements.

Mr. Hilton is a partner in the Energy Development practice group, and his practice is focused on the California energy sector, representing clients before California’s energy regulatory agencies and advising a diverse group of clients on energy regulatory issues. He also represents clients in arbitration, mediation and litigation throughout the United States. Mr. Hilton's regulatory practice includes representing clients before the California Public Utilities Commission and California Energy Commission, as well as in stakeholder proceedings at the California Independent System Operator. He has extensive experience in complex commercial litigation, including both bench and jury trials, and appellate matters, including successful arguments at the California Courts of Appeal and the Ninth Circuit. Mr. Hilton's clients include developers of thermal and renewable generation, energy storage developers, transmission developers, energy service providers, and oil and gas pipelines, shippers, and producers.

Mr. Lund is a partner of the firm practicing in the Energy Development group. He serves as Chair of the Energy Storage Initiative and is the former Chair of the Solar Energy Initiative. Mr. Lund's experience includes development and financing of a broad variety of energy and infrastructure projects. His project experience background covers the full lifecycle of infrastructure projects, from early-stage development through construction, financing, and acquisition/divestiture. Mr. Lund has worked on wind and solar energy projects, energy storage projects, combustion generator projects, nuclear energy facilities, hydro-electric facilities, cogeneration facilities, chemical facilities, forestry/paper facilities, large aircraft, and shipping fleets. He also represents companies developing infrastructure technology, including water treatment technology, solar energy technology, and wind energy technology.
Description
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 battery energy storage systems.
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.
Outline
- Recent developments in battery energy storage systems financing and procurement
- Contract structures and related issues
- Tax considerations in deal structures
- Regulatory obstacles and how to avoid them
- Best practices for battery energy storage systems compliance
Benefits
The panel will review these and other key issues:
- Recent developments in the procurement of battery energy storage systems
- 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
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