Energy storage—construction issues
Produced in partnership with Richard Streeter and Madi Dacey of Eversheds-Sutherland
Energy storage—construction issues

The following Energy guidance note Produced in partnership with Richard Streeter and Madi Dacey of Eversheds-Sutherland provides comprehensive and up to date legal information covering:

  • Energy storage—construction issues
  • Introduction
  • Contracting structure
  • Co-location
  • Performance guarantees
  • Manufacturers’ warranties
  • Ownership of software
  • Compliance with industry codes

Introduction

The advances in energy storage technology are transforming the energy market on a global scale, making energy storage a hot topic in the industry.

This note focuses on UK battery storage projects, in particular, market specific construction issues arising and being discussed when drafting and negotiating the construction contracts for these projects from a developer/funder perspective. For an introduction to energy storage projects more generally, see Practice Notes: Scaling up energy storage: revenue opportunities in Great Britain and Energy storage technologies in the UK. For an introduction to the planning issues associated with energy storage projects, see Practice Note: Energy storage—planning issues. For an introduction to the regulatory and licensing issues associated with energy storage projects, see Practice Note: Energy storage—the evolving regulatory regime and renewable subsidy position.

Consistent market positions have not been reached on some of these issues, given the emerging nature of the technology. However, this note addresses the high-level points for developers/funders to consider when agreeing positions on these issues.

Contracting structure

Developers and funders of renewables projects in the UK have generally preferred a turnkey approach, ie where one contractor is appointed under an Engineering, Procurement and Construction (EPC) contract that has overall responsibility for the entirety of the works and supply of the product(s) (for more information on EPC contracts generally, see Practice