Owner’s Engineering for Utility-Scale BESS Projects
PowerSwitch offers full-scope Owner’s Engineering (OE) support for utility-scale BESS projects, from bid/feasibility stage through to construction, commissioning, and operations. As a committed technical partner, we leverage our experience supporting over 2 GW of BESS projects to ensure projects are planned, financed, and executed on-time and on-budget. Having been on both sides of the financing of BESS projects, our approach is to ensure that projects are structured and contracted in ways that minimize risk, ensuring that the IE process goes smoothly so that projects can reach financial close and proceed toward commercial operations with no major roadblocks.
The scope of the OE support is tailored to the needs of each client. While some prefer an on-call technical partner for key opinions, others require complete support throughout the planning, finance, and execution phase. The report is focused on identifying key risks, and proposing / evaluating methods of mitigating these risks to ensure a successful, profitable project.
The table below details the typical OE services available for pre-financial close (FC) support utility-scale BESS project. For each section, the key elements of review are listed along with optional additional reviews. The hourly estimates are representative of past reviews conducted by PowerSwitch, but can be modified as needed to provide additional focus on any key concerns, or streamlined to remove any which do not apply. Hours estimates are provided for OE support through bid evaluation – additional support services are listed, with hourly commitments to be quoted based on the requirements of each project.
The scoping is specific to pre-financial close diligence. As required, PowerSwitch can quote post-FC OE support such as construction reviews, site visits, and support during commissioning. All expected engagements require a preliminary review of the available documents, at which point a binding project specific quote can be issued.
Owner’s Engineer (OE) Key Services – Utility-scale BESS Preliminary Planning – Per-project basis
Section
Description
Hours
Market Review
Review proposed BESS market, including siting support, proximity to transmission, expected market performance, and preliminary financial model support
8
Project sizing, augmentation, and degradation support
Perform initial system sizing using proprietary PowerSwitch Sizing Tool, which allows customer to evaluate various technology providers, expected energy and power requirements over the system life, and compliance with offtake requirements
12
Tender Design
Compose technical standards (either bullet-form, or in comprehensive technical specifications attachments), prepare Excel-based technical bid-sheets, compose distribution list of battery OEMs, EPCs, or other suppliers/contractors. Includes development of Division of Responsibilities (DoR) matrix.
18
BESS Supply Bid evaluation
Evaluate proposals from BESS suppliers. Develop point-based matrix for evaluation of bidders including compliance with technical requirements, proposed degradation/augmentation schedule, and pricing breakdown. As needed can perform evaluation of net-present cost (NPC) of proposals to compare combined CapEx and lifetime OpEx costs of various proposals.
18
Total
Estimated hours for preliminary OE support, per system
56
Typical Expected Cost: Preliminary OE Project Support
Based on average hourly cost of $250 / hr, including all project management
$12,000 - 16,000
Additional OE Support services – Hours to be quoted based on individual project requirements
Section
Description
Contract negotiation
Assist in negotiating key technical and commercial terms of contracts such as BESA, LTSA, O&M. May include virtual or on-site support with suppliers / contractors.
IE/Financing support
Provide technical support to respond to IE requests, answer technical IE/lender questions, and propose and implement risk mitigation activities
EPC Contract Support
Develop all technical inputs for tender, bid evaluation, and EPC contractor meeting and support
Offtake negotiation support
As required, support virtual or on-site meetings to discuss the project and its technical requirements with key offtakers
Construction Review
Review relevant construction contracting structure, contractor track records, schedule, and coordination between contracts. Review of appropriate gap between liquidated damages between construction and supply contracts.
Support community meetings
Support preparation, presentation, and responses to community meetings around BESS projects. May include attendance either virtually or in-person, as required.