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 does EPC mean in the solar industry?

In the solar industry, EPC stands for engineering, procurement, and construction. Companies that provide end-to-end solar energy services, including designing the system, giving procurement details about the system, and installing it, use this term.

What is an EPC arrangement?

In an EPC arrangement, the contractor is responsible for all project activities, including detailed engineering design, procurement of necessary materials and equipment, and construction of the complete facility.

How do EPC projects work?

The successful execution of EPC projects relies on three distinct yet interconnected phases, each requiring specialized expertise and careful coordination. The engineering phase establishes the project’s foundation through comprehensive planning, design development, and technical documentation.

How much do EPC projects cost?

The oil and gas sector represents one of the largest markets for EPC projects, with investments ranging from $5 billion to over $20 billion for major facilities. EPC contractors manage the construction of refineries, offshore platforms costing between $650 million and $4 billion, and extensive pipeline networks spanning thousands of kilometers.

What is an EPC contract?

EPC contracts have become the cornerstone of complex infrastructure development across various industrial sectors, each with its unique requirements and challenges. The oil and gas sector represents one of the largest markets for EPC projects, with investments ranging from $5 billion to over $20 billion for major facilities.