1. Diversification of Supply Chains
- Avoid Single-Country Sourcing: Ensure that supplies are not solely dependent on one country to mitigate the impact of geopolitical or logistical disruptions.
- Use Multiple Suppliers: Maintain a diverse supplier base to provide redundancy and flexibility in case one supplier encounters issues.
2. Risk Management in Project Design
- Overbuild Strategy: Incorporate an overbuild strategy into project design to ensure the BESS has more capacity than required. This helps meet contractual obligations even if supply chain issues affect some components.
- Substitute Raw Materials: Explore alternative raw materials to reduce dependency on specific supplies.
3. Contract and Supplier Management
- Proper Contract Review and Negotiation: Ensure contracts are thoroughly reviewed and negotiated to include provisions that mitigate risks such as delivery delays or non-performance.
- Build a Vetted Supplier List: Maintain a list of approved, diverse suppliers to ensure continuity and flexibility in procurement.
4. Risk Assessment and Planning
- Identify and Assess Risks: Conduct thorough risk assessments at all stages of the procurement process to anticipate potential issues.
- Implement Risk-Based Controls: Develop methodologies for assessing risk priorities and applying appropriate controls.
5. Installation and Commissioning Oversight
- Delivery Inspections: Conduct thorough inspections upon delivery to ensure equipment meets specifications.
- Comprehensive Installation Management: Oversee installation closely, including monitoring and reporting during commissioning processes.
- Site Acceptance Testing (SAT): Perform rigorous site acceptance tests to ensure the system meets expected performance standards.
By implementing these strategies, developers can effectively manage and reduce risks associated with the procurement and deployment of BESS systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-strategies-can-developers-use-to-minimize-risks-in-the-bess-procurement-process/
