Dive Brief:
The U.S. battery energy storage sector faces more near-term risk than other industries from President Donald Trump’s executive order last week restricting foreign-produced bulk power components, BloombergNEF analysts said in a note Friday.
Deployment delays are likely for many grid-scale battery projects as developers await additional guidance from the administration, seek alternative suppliers or redesign projects, according to the BNEF note.
Battery project developers and operators should map existing and planned assets that may be affected by the order, assess regulatory risk allocation in supply contracts, consider expanding supply chain diligence and prepare to mitigate or replace affected equipment that has already been installed, lawyers with Morgan Lewis’s energy practice said in a separate post Friday.
Dive Insight:
