This article is the third installment in a five-part series exploring the critical components of Battery Energy Storage Systems (BESS) development. Each piece delves into a pivotal phase or document essential for navigating the complexities of BESS projects. In the first two parts, we addressed the importance of Term Sheets or Letters of Intent (LOIs) as foundational agreements and the significance of Site Control. Here, we turn our focus to the permitting process—a nuanced and often complex phase influenced by the unique characteristics of each project and zoning jurisdiction.
Best Practices for the Permitting Process
To successfully navigate the permitting process for BESS development, it is essential to adopt a strategic and proactive approach. Below are six best practices that can enhance your chances of success:
- Conduct Thorough Preliminary Due Diligence
Before initiating the permitting process, invest time in understanding the zoning codes, local ordinances, and any precedent set by the jurisdiction. Research past projects and familiarize yourself with the municipality’s stance on renewable energy and storage solutions. This groundwork will allow you to identify potential challenges and tailor your approach accordingly. - Understand the Schedule and Filing Deadlines
Permitting timelines can vary widely across jurisdictions, and delays often stem from missed deadlines or incomplete filings. Develop a clear timeline, outlining all milestones, deadlines, and expected approval times. Staying ahead of the schedule is vital to avoid bottlenecks in project development. - Build Relationships with Stakeholders, Especially the AHJ (Authorities Having Jurisdiction)
Strong relationships with municipal officials, planning boards, and other stakeholders can significantly influence the outcome of your application. Engaging early and maintaining open lines of communication fosters trust and collaboration. Attend public meetings, listen to community concerns, and demonstrate your commitment to being a responsible partner. - Engage Local Engineering Expertise
Hiring a local engineering firm with experience in the jurisdiction can streamline the process. These professionals bring valuable insights into local requirements, community expectations, and technical standards. Their familiarity with the area can enhance the credibility and quality of your application. - Retain Experienced Legal Counsel
Navigating zoning codes and permitting regulations often requires legal expertise. Engage counsel experienced in renewable energy and BESS development to ensure compliance and advocate effectively on your behalf. Legal representation can also mitigate risks and expedite resolutions in case of disputes or challenges. - Develop a Clear Strategy and Be Persistent
Every project faces hurdles, from initial skepticism to outright opposition. Approach each challenge with a well-thought-out strategy and a willingness to adapt. Persistence is key—what may appear as insurmountable obstacles can often be overcome through collaboration, education, and compromise.
Insights from the Field
Drawing on nearly 30 years of development experience across thousands of projects, I have observed firsthand how unpredictable the permitting process can be. Even in towns with favorable zoning codes, the “perfect project” can face rejection. Conversely, I’ve seen use variances approved in traditionally hostile jurisdictions with surprising ease.
One common pitfall is an overreaction to initial resistance. Many developers abandon projects after a single negative conversation with a municipal official or when faced with ambiguous zoning codes. This hesitation can lead to missed opportunities.
A prime example is dealing with moratoriums, where municipalities pause new applications to evaluate their zoning codes or educate themselves on unfamiliar project types. While moratoriums are often viewed as obstacles, they can also present opportunities. Use this time to collaborate with the AHJ, provide educational resources, and build rapport with community stakeholders. A strong application and proactive engagement can turn a delay into an advantage.
The Realities of Zoning and Permitting
There is no one-size-fits-all approach to zoning and permitting. Each jurisdiction is unique, requiring tailored strategies and a deep understanding of the local landscape. That said, prudence is essential, and some battles may not be worth fighting.
Development in the BESS industry is inherently challenging and not for the faint of heart. Success requires resilience, strategic thinking, and a commitment to building long-term relationships with stakeholders. By adopting these best practices, developers can navigate the permitting process more effectively, turning obstacles into opportunities for growth and collaboration.
Stay tuned for Part 4 of our series, where we’ll explore the next critical phase in BESS development.
Joe Tassone Jr. is founder and a principal of Oncore Origination and has over twenty-eight years of project development experience. Visit www.oncoreorig.com for more information.