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SoCal Edison battery storage projects totaling 2.1 GWh likely to be delayed

Amersco said supply chain constraints and COVID-19 lockdowns in China could delay 2.1 GWh of battery storage projects for Southern California Edison.
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Three battery storage projects being built for Southern California Edison are likely to be delayed due to supply chain constraints and COVID-19 lockdowns in China, according to the contractor.

Last October, Ameresco was selected by SoCal Edison for an engineering, procurement, construction, and maintenance contract to deliver the three battery storage projects totaling 537.5 MW/2.15 GWh. The company secured $262 million from Bank of America to finance the projects, which had a targeted commercial operation date of August.

Ameresco said on April 10 that it told SoCal Edison that its battery supplier, FlexGen, repoirted that COVID-19 lockdowns and newly-implemented transportation safety policies in China could delay delivery of the batteries.

These impacts constitute "force majeure events" within their contract with SoCal Edison, Ameresco said in a press release. The so-called "Acts of God" provision in the contract would allow the projects' completion date to be extended without triggering liquated damages.

Construction activities will continue at the three projects sites while Ameresco waits for the batteries to be delivered. High and medium voltage transformers, auxiliary transformers, inverters, all switchgear and ancillary equipment have all been secured for the projects.

China's largest outbreak of Covid-19 in two years have led to widespread lockdowns and supply chain disruptions, according to local news reports. An extended lockdown affecting Shanghai's 25 million people is leading to containers piling up at China's biggest port. Some European companies are asking Chinese officials to ease official "zero Covid" policies given the ongoing supply chain disruptions.

When the SoCalEdison projects were announced last year, Ameresco said the aggressive completion timeline was driven by California Gov. Gavin Newsom's emergency proclamation to expedite clean energy projects.

Newsom said clean energy, energy storage, and demand response programs are needed for the state to respond to climate-fueled extreme weather events that are more frequently impacting the electric grid.

Ameresco said it will continue to monitor developments in China and will work with suppliers to avoid delays. The company will work with the Port of Long Beach to expedite ship and container handling.

Renewable Energy World reached out to both Ameresco and FlexGen for statements on the potential project delays and is waiting to hear back.

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