Turnkey utility scale ESS EPC contract price in France

What is an EPC agreement for a battery energy storage system?

The negotiation of an engineering, procurement and construction (EPC) agreement for a battery energy storage systems (BESS) project typically surfaces many of the same contractual risk allocation issues that one encounters in the negotiation of an EPC agreement for a solar or wind project.

What is an EPC agreement containing Bess project performance guarantees?

An EPC agreement containing BESS project performance guarantees will contain detailed testing procedures as well as provisions for liquidated damages in the event that a constructed BESS project is unable to pass applicable performance testing.

What is a performance specification in an EPC contract?

Performance specification: Unlike a traditional construction contract, an EPC Contract usually contains a performance specification. The performance specification details the performance criteria that the Contractor must meet. However, it does not dictate how they must be met. This is left to the Contractor to determine.

What happens if the EPC contract is uncertain?

Any uncertainty in the EPC Contract may unfortunately see the Contractor liaising directly with these third parties and possibly risking the relationship of the Project Company with key influencers, customers and long-term neighbours.

What are the benefits of an EPC contract?

As noted previously, one of the advantages of an EPC Contract is that it provides the Project Company with a fixed completion date. If the Contractor fails to complete the works by the required date, it is liable for DLDs. However, in some circumstances the Contractor is entitled to an extension of the date for completion.

What are the risks associated with an EPC contract?

The most significant risk for the Project Company in an EPC Contract is where there is an exclusive remedies clause and the only remedies for delay and underperformance are liquidated damages.