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.

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.

Will US energy storage buyers reduce Chinese exposure?

Unless and until that happens, Kikuma said U.S. energy storage buyers will look to reduce Chinese exposure and buy more from producers in South Korea, Japan and Southeast Asian countries like Vietnam, which reportedly offered to zero out its own tariffs on U.S. imports shortly after Trump’s April 2 announcement.

Will trump's 'Liberation Day' tariffs affect energy storage development?

The most visible effect of the “Liberation Day” tariffs, which Trump has since dialed back for most countries while keeping triple-digit levies on imports from China, could be a dramatic reduction in merchant energy storage development in key markets like Texas, Manghani said.

How will Trump's tariffs affect battery technology?

If steeper tariffs are enacted on the global battery energy storage supply chain under the Trump Administration, the near-term impact could raise U.S. costs on battery technology by 35% or more, according to a new report by the group Clean Energy Associates. Whether this impedes that multi-year growth pattern remains to be seen.