Core Viewpoint - "Tariff risk sharing" is becoming a new norm in power purchase agreements (PPAs) for energy storage systems in the U.S. due to uncertainties surrounding import tariffs and investment tax credits (ITC) [3][7]. Group 1: Recent Agreements - Ava Community Energy signed two PPAs with EDP Renewables, including a 200MW solar and 184MW/736MWh storage project, which is the largest agreement, located in Fresno County, California [4]. - The second agreement involves a 70MW/280MWh storage capacity addition to the Scarlett solar project, which is situated near the Sonrisa project [6]. Group 2: Market Dynamics - The uncertainty regarding the potential reinstatement of import tariffs between the U.S. and China adds complexity to the energy investment landscape [5]. - The negotiation dynamics of PPAs are shifting, with developers unwilling to bear the price risks associated with tariffs and tax credits alone, leading to the inclusion of price adjustment mechanisms in contracts [7][8]. Group 3: ITC Incentives and Challenges - EDP is expected to continue benefiting from ITC incentives under the Inflation Reduction Act (IRA), with the storage ITC program following a gradual phase-out path set by the Biden administration [9]. - New legislative provisions regarding "foreign entities" may restrict projects using materials from Chinese companies from qualifying for ITC, presenting additional challenges for developers [10].