New model agreement allows bundling of revenue streams in storage projects

The contract can be used to formalise agreements between the storage provider and the customer, Thus creating clearer arrangements for leasing capacity to third parties. d This makes it easier for battery operators to apply the ‘revenue stacking’ model, where capacity is broken down into pieces to create revenue in different markets. In this way, the battery owner continues to operate the battery themselves, and can bundle different revenue streams to achieve higher sales. Parts of the battery's capacity can be leased to third parties at predetermined times, in which case it is important that the agreements made in this regard are properly documented.

Examples of possible customers for the storage capacity are wind and solar parks, network companies and industrial customers, for which the standardised agreement drawn up in this FTR can be used.

Financing of storage

At the end of 2020, SemperPower approached Invest-NL with a funding request that was difficult to meet. The main reason for this was that no comfort could be found for the market risk experienced by financiers, leaving SemperPower unable to raise the required amount of debt financing.

Invest-NL Business Development identified the underlying bottleneck and decided to help the company by means of an FTR project, in which advisors and lawyers work on the business model, the valuation of such a model and, as an end product, the legal formulation of it in a model agreement.

Energy Storage Agreement

The Energy Storage Agreement (ESA) is concluded between the capacity buyers and the battery operator. This agreement can then be used to provide security to financiers of the battery and can serve as collateral. Important topics covered in the agreement include obligations, fees, liability and penalties for failure to comply with nominations and securities.