Can a Bess agreement contain a lease?
Protective rights are often in place for the safety and functionality of the asset and typically would not interfere with the safe operation of the asset within the parameters of the agreement. If the customer controls the BESS, then the arrangement could contain a lease.
What if a lease needs to be terminated before construction?
If the landowner has an existing commercial tenant on the property and the lease needs to be terminated prior to construction of the project, the developer may be required to give the landowner significant prior notice to allow the landowner time to properly terminate or the existing lease.
What happens if a landowner terminates a commercial lease?
Additionally, landowners will frequently request guarantees or security from the developer to cover them in the event the landowner terminates their existing commercial lease at the developer’s direction, but for some reason the project stalls and is not constructed and they are left without a tenant.
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