Energy Storage
Legal and Regulatory Challenges and Opportunities
Published: 2019
Pages: 96
eBook: 9781787422728
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.
Table of Contents
| Cover | Cover | |
|---|---|---|
| Halftitle Page | 1 | |
| Copyright Page | 2 | |
| Table of Contents | 3 | |
| 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.
Sirja-Leena Penttinen
Louise Dalton
Senior associate, CMS
[email protected]
Louise Dalton is a senior associate in the energy practice at CMS in London, specialising in the electricity sector. She advises developers, investors, lenders, networks, suppliers and energy users on regulatory and commercial matters in the United Kingdom and internationally. She has a focus on legal issues for flexible and emerging technologies, including energy storage, electric vehicles, peaking power and demand side response. In particular, she advises on a wide variety of storage developments comprising various technologies, including standalone, co-located and behind-the-meter projects. She regularly addresses first of a kind issues, such as the regulatory treatment of storage pursuant to legislation, regulations and industry codes, storage revenue stream matters and associated documentation.
Ms Dalton leads CMS's energy storage initiative, including coordinating the publication of the multi-jurisdictional CMS Energy Storage E-Guide in 2016 and Storage and renewables: The next frontier on co-location issues in 2018. She speaks regularly at industry events on storage and related matters and is a member of the Renewable Energy Association's Energy Storage Steering Group.