Battery energy storage system (BESS) projects are complex undertakings that require coordination across engineering, construction and procurement (EPC), financing and operations. Yet even experienced developers and utilities can stumble over a few critical details that determine a project’s success.
TruGrid has implemented protocols in the planning and contracting phases of projects that have saved asset owners and developers from experiencing costly delays. Below are five commonly overlooked issues and practical ways to tackle them with your EPC partner.
1. Mismatch between electrical design and interconnection requirements
Credit: TruGrid
A mismatch between the system design and interconnection requirements is one of the most frequent and expensive issues developers face. If the interconnection specifications don’t align with the project’s electrical design, there can be redesigns, resubmittals and costly delays.
Successful contracting begins with precise alignment, both commercially and technically. It’s vital for companies developing a new project to engage their EPCs early to confirm interconnection requirements. They must also have flexibility with designs to accommodate for evolving grid standards. Lastly, projects must have detailed verification checklists to align drawings, single-line diagrams and protection schemes. When developers and EPCs contract with a clear scope and shared expectations, it sets the foundation for efficient execution.
TruGrid, an energy storage and solar EPC, has published a whitepaper on navigating interconnection and telemetry requirements.
2. Poor scheduling that ignores seasonal weather
Seasonal weather conditions can significantly impact construction timelines and site readiness. While speed to market is critical and can influence a rapid timeline, overlooking potential delays from Mother Nature, including local climate patterns, often leads to lost productivity, schedule delays and higher costs.
It’s vital to review and incorporate historical weather data to ensure scheduling and logistical success. In turn, plans can be adjusted to sequence work so that weather-sensitive tasks happen during more predictable months. Plans must be built with contingency time and equipment to account for weather disruptions. Weather cannot be controlled, but proactive planning can improve expectations and relationships between developers and their EPC.
3. Inadequate thermal management and HVAC design
Thermal management is a critical component of battery system reliability. Poor heating, ventilation and air conditioning (HVAC) design can shorten equipment life and increase safety risks, particularly in high-temperature regions.
An EPC partner should work closely with technology providers to integrate HVAC design into the overall system, which ensures long-term safety and uptime. This starts with having thermal management designs reviewed by both the integrator and EPC. HVAC systems must also be rated for the site’s environmental conditions. And when it comes to the commissioning and operations phases, it’s imperative to implement proactive processes to verify performance.
4. Financing issues and contracting gaps
Even technically sound projects can falter due to financing or contracting gaps. Incomplete or unclear contracts often lead to change orders, delayed funding releases and project disputes.
Clarity regarding cost is key. Clearly outlining responsibilities for interconnection upgrades, testing and commissioning must be included in contracts. When it comes to cash flow, aligning payments with key construction milestones can bring clarity and consistency. It’s critical to establish transparent communication between the developer, EPC and financiers.
“Contracting for critical scope details, like equipment delivery schedules, interconnection timing, and commissioning responsibilities, helps ensure a smooth, successful project delivery,” said Josh Richardson, COO of TruGrid. “ When these are clear from the beginning, execution becomes far more predictable.”
5. Competing labor markets
The energy sector is now competing with industries such as data centers for qualified electricians, project managers and skilled trades. In areas like Texas and California, where both energy and data center infrastructure development are booming, this competition can strain project timelines and budgets.
Early labor planning and regional partnerships help stabilize project schedules, even in competitive markets. That’s why it’s critical to partner with an EPC that maintains consistent relationships with regional labor networks. Contractors should also develop early workforce plans to secure key trades before peak demand periods or when located in close vicinity to competing markets.
The bottom line
Energy storage projects succeed when the technical, commercial and logistical pieces fit together seamlessly. It all starts with choosing the right partners, engaging them early and having open dialogue about design, weather, thermal risks, financing and labor. By working with them to identify potential risks upfront, developers and utilities can ensure smoother execution, fewer surprises and stronger returns over the life of their projects.
Chris Finley is the Chief Commercial Officer at TruGrid, an engineering, procurement and construction company for utility-scale energy storage and solar projects. With a career spanning more than two decades and 8 GW of energy projects, Chris has a track record in business development, contract negotiations and operational management. At TruGrid, he leads commercial strategies, including pre-construction, marketing, business development and partnerships, ensuring the successful planning and execution of large-scale solar and BESS projects. His leadership is defined by a focus on risk mitigation, strategic growth and collaboration, all while driving the organization toward its goals in the renewable energy space.
