Energy storage products foreign trade

4 FAQs about Energy storage products foreign trade

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 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.

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.

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