a. Introduction
In Africa sunlight and wind are in abundance, which makes a compelling case for renewable generation. However, the sun does not always shine and the wind does not always blow. This intermittency has heightened the importance of energy storage.

b. Battery Energy Storage Systems (“BESS”) EPC Contract Considerations
The construction documentation of a BESS project can be structured as a lump sum, turnkey EPC contract based upon the FIDIC Silver Book 2017 version or another similarly acceptable institutional form chosen by Sponsors. The EPC Contract may be divided into an onshore construction contract and offshore supply contract with a coordination agreement prior to execution. The BESS EPC Contract should broadly reflect threshold project finance requirements.

c. Completion Date and Liquidated Damages
The scheduled completion date of the storage project will be a point of interface with the government-facing project agreements that will need to be appropriately passed down to the BESS EPC Contract (with an appropriate time buffer).

d. Energy Capacity Guarantee and Liquidated Damages
Pursuant to a BESS EPC Contract, the Contractor may guarantee energy capacity (MWh) of the storage project at specified levels over the operating life of the storage project (for example, ranging for a period from 15 to 25 years) subject to liquidated damages and with limited carve-outs to be specified in the contract. However the guaranteed energy capacity may depend on what the OEM provider will guarantee, thus there is no “single” approach.

e. Aggregate Performance LDs Cap
Pursuant to the BESS EPC Contract, payment of Liquidated Damages by the Contractor would be the sole and exclusive remedy (other than termination rights if any) for delays to the planned COD date and for failure to meet energy capacity and RTE Guarantees. Please refer to the “Download Publication” link below for further
information.

f. Defects Notification Period and Warranties
A defects notification period in the range of twenty-four (24) months from the commercial operations date with a refresh of the warranty period for any replaced / repaired part may be included in the BESS EPC Contract.

g. Serial Defects
The BESS EPC Contract will contain a regime for serial defects in Major Components which if triggered will result in appropriate remedies (meaning root cause analysis and if needed, repair and replacement). Varying degrees of protection could be offered for serial defects.

The full publication in the “Download Publication” link elaborates on points a – g:
Ancillary Services
Storage Testing and Commissioning
Battery Enclosure / Housing
RTE Guarantee and Liquidated Damages
Availability Guarantee and Availability Liquidated Damages
Battery Degradation
Closing Remarks