Brian Nese Quoted on Risks Facing Solar and Battery Storage Project Developers

In a new article, Brian Nese provided Utility Dive with his insights on some of the risks facing developers of battery storage and solar projects.

A recent report from market intelligence firm Guidehouse Insights suggests that owners of large-scale battery energy storage projects should focus on long-term contracts and guaranteed revenue streams in considering financing strategies for their projects—while remaining cognizant of the risks associated with different deal structures.

According to veteran energy development attorney Nese, financing risks facing battery storage and solar project developers include supply chain or logistics issues, among others, with product manufacturers seeking to try to pass risk on to developers by such means as modifying contract terms to implement a variable, rather than fixed, price for logistics.

Nese notes also that revenue streams for battery storage projects can vary depending on the market and state where the project is located—for example, there are “merchant markets in Texas, where project developers will deploy the asset into the market at opportune times,” a strategy that can be especially lucrative in the summers, he said.

Read the full article here.