Should energy storage projects be developed?

However, energy storage project development does bring with it a greater number of moving parts to the projects, so developers must consider storage’s unique technology, policy and regulatory mandates, and market issues—as they exist now, and as the market continues to evolve.

Should energy storage project developers develop a portfolio of assets?

12 PORTFOLIO VALUATION Developing a portfolio of assets can be seen as the inevitable evolution for energy storage project developers and private equity investors who are interested in leveraging their knowledge of the technology, expertise in project development, and access to capital.

What is the energy storage design project?

The project began with the refinement of a matrix of interim and long-term design issues that were targeted to be addressed by the document, “Energy Storage Design Project Draft Design Document for Stakeholder Comment, February 4, 2020” (the “Interim Design”) and this Long- Term Design Vision document, respectively.

What economic inputs are included in the energy storage model?

The economic inputs into the model will include both the revenue and costs for the project. Revenue for the energy storage project will either be expressed as a contracted revenue stream from a PPA (Power Purchase Agreement), derived from merchant activity by the facility, or some combination thereof.

What is the business model for energy storage?

The business model for energy storage reli es on value stacking, providing a set of services for customers, a local utility, and the grid. By having two or three distinct contracts stacked on top of each other, you can generate multiple revenue streams.

Are energy storage projects different than power industry project finance?

Most groups involved with project development usually agree that energy storage projects are not necessarily different than a typical power industry project finance transaction, especially with regards to risk allocation.