Energy Storage

Legal and Regulatory Challenges and Opportunities

By (author) Louise Dalton

Publication date:

18 June 2019

Publisher

Globe Law and Business

ISBN-13: 9781787422735

Energy storage is a key trend in the electricity industry across the globe, with one recent analysis predicting 942GW of storage (excluding pumped storage) will be developed by 2040. This Special Report provides an overview of the key issues in relation to the development of storage projects, including: •The main technologies •Regulatory arrangements •Revenue streams and •Contracting arrangements and covers the key policy, commercial and legal principles that underpin this developing sector.

I. Introduction 7 1. Issues and challenges 7 2. Current and predicted storage deployment 8 II. Why is electricity storage required? 9 1. Benefits 9 2. Range of services 9 III. Storage technologies 13 1. Technology summaries 13 2. Technology selection 16 IV. Applications 19 1. Standalone storage projects 19 2. Co-location with generation 20 3. Commercial behind-the-meter applications 22 4. Domestic behind-the-meter applications 24 5. Islanded networks and micro-grids 24 6. Co-location with electric vehicle charging infrastructure 25 V. Regulatory framework 27 1. Overview 27 2. Licensing 27 3. Final consumption levies 28 4. Network charging 29 5. Definition of storage 30 6. Disputes 32 VI. Role of stakeholders 33 1. Government 33 2. Energy regulator 35 3. System operators 36 4. Network owners 38 5. Aggregators 40 6. Suppliers 41 7. Generators 42 VII. Revenue streams 43 1. Revenue stacking 43 2. Frequency response 45 3. Provision of reserve 47 4. Black Start 50 5. Alternative system services 50 6. Energy trading 50 7. Participation in balancing market 51 8. Other revenue streams 52 VIII. Electricity export and trading agreement 53 1. Overview 53 2. Trading arrangements 54 3. Co-located projects 55 IX. Import electricity supply agreement 57 1. Agreement structure 57 2. Pricing 58 X. Grid connection arrangements 61 1. Key considerations 61 2. Existing connections 63 3. Active network management 63 XI. Construction contract 65 1. Contractual structure 65 2. Key issues 66 XII. Operations agreement 69 1. Structure and key provisions 69 2. Additional considerations 70 XIII. Land agreement 71 1. Land requirement 71 2. Key considerations 72 XIV. Permitting 75 1. Consent to construct and operate 75 2. Producer responsibility 76 3. Wider environmental and health and safety requirements 76 XV. Corporate arrangements 79 1. Corporate structures 79 2. M&A activity 80 3. Investors 81 XVI. Financing arrangements 83 1. Overview 83 2. Key challenges 84 3. Key issues 84 4. Key financing terms 88 XVII.Conclusion 91 Notes 92 About the author 95 About Globe Law and Business 96

A concise, accessible treatment of the very key areas and issues that should be taken into consideration in relation to the development of storage projects.