Which international trade issues will remain a concern for energy storage projects?

Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.

Will US tariffs affect energy storage?

There have also been indications that the US administration may consider other tariff proposals impacting energy storage, such as a 10–20% universal tariff, tariffs of up to 60% across the board on Chinese-origin goods, and tariffs of 25% on Mexican and Canadian origin goods.

How much energy would a trading block need to be sold?

If that figure is taken as a hypothetical benchmark, an improbable 78.6% of that would need to be sold to the E.U. in order to meet the pledge. In actual fact, the trading block’s market share of U.S. energy exports last year was less than 24% or $76 billion, according to Reuters.

How does tariff risk affect a battery energy storage system (BESS) project?

Mitigating tariff risk in battery energy storage system (BESS) projects is crucial for ensuring project financial viability, as tariff changes can significantly affect cost structures and overall project economics.

Are energy ties between US and EU deepening?

Admittedly, energy ties between the U.S. and E.U. are indeed deepening. Particularly so, in the case of natural gas industry. According to Eurostat data, U.S. LNG had a 55% share of the EU market, and 27% of total EU gas imports in the first half of this year.

How does a fixed-price supply agreement protect developers from tariff increases?

Negotiating fixed-price supply agreements with suppliers and EPC contracts with contractors allows developers to shield themselves from the impact of tariff increases. In these contracts, the price of the equipment or materials is set for the duration of the agreement, protecting the developer from import costs.