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‘Scrutinising Origin, Ownership, and Control’: FEOC Rules Change US BESS Buying

On January 1, 2026 the United States enforced foreign‑entity‑of‑concern (FEOC) restrictions and a 25% Section 301 tariff on Chinese‑origin battery energy storage systems (BESS). The new rules have shifted procurement from a price‑only focus to a comprehensive risk‑management approach that evaluates supply‑chain compliance, ownership, and control. Developers are modelling multiple sourcing scenarios to account for tariffs, financing impacts, and eligibility for tax credits. Prevalon Energy, a spin‑out of Mitsubishi Power, pre‑emptively diversified its supply chain, positioning itself as a flexible integrator in the evolving market.