Recurrent Energy Expands Ercot Storage Pipeline with Acquisition Of 400 MWh Of Standalone Storage Projects Under Development – EQ Mag Pro
Two standalone energy storage projects were acquired from Black Mountain Energy Storage
GUELPH, ON. : Recurrent Energy, LLC (“Recurrent”), a wholly owned subsidiary of Canadian Solar Inc. (“Canadian Solar”) (NASDAQ: CSIQ), today announced the acquisition of two standalone energy storage projects from Black Mountain Energy Storage (BMES). The projects, which are in the South Load Zone of the Texas ERCOT market, are each anticipated to store up to 200 MWh of energy. Both projects are currently in development and are anticipated to reach notice to proceed (NTP) in 2023 and begin operation in the second quarter of 2024.
Recurrent has developed 2.9 GWh of energy storage projects that are in construction or operation and has an additional pipeline of 15.5 GWh of projects under early to mid-stage development. The two standalone energy storage projects added to Recurrent’s development pipeline will be operated as merchant projects in the ERCOT market, providing dispatchable and reliable power to the grid. Recurrent will continue to develop the projects, finalize entitlements and designs, select and procure equipment, raise project financing, and construct the facilities.
Dr. Shawn Qu, chairman and CEO of Canadian Solar, said, “ERCOT is one of the fastest growing markets in the world for energy storage, driven by market demand for flexible capacity. We are pleased to accelerate our ERCOT storage pipeline with the acquisition of two projects totaling 400 MWh of storage from Black Mountain Energy Storage. We look forward to bringing our storage development, financing and construction experience to bear as we bring these projects to fruition and increase grid reliability for Texans.”
According to Wood Mackenzie’s US Energy Storage Monitor report, in 2021 annual deployments of grid-scale storage nearly tripled year-over-year, to over 3.5 gigawatts, with California and Texas as leaders. The South Zone in ERCOT is an attractive area for storage development due to the abundance of coastal wind and solar power. Battery storage enables stored power to be used during times of peak demand, improving reliability.
“It’s bittersweet to see these projects leave the nest, but I must say Recurrent picked them well. We ought to see pronounced volatility at these nodes for years to come, and these batteries will not only capture significant value but provide resiliency in a sparse region of ERCOT’s transmission network. Identifying challenged areas of the transmission network that produce outsized opportunities for spread capture is BMES’ core focus, and we have 3.0 GW of optimally sited ERCOT BESS projects in the hopper behind these two. We’re excited to see Recurrent Energy take each of these projects into the next phase of development and appreciate the expertise the folks at LevelTen Energy brought to the table to facilitate an efficient transaction process,” said Witt Duncan, Director of Corporate Development, BMES.
The transactions were executed through the LevelTen Asset Marketplace, a platform that connects clean energy project developers and financiers, and provides the software, analytics and M&A transaction expertise they need to execute transactions quickly.
“The LevelTen Asset Marketplace provides a centralized platform for renewable energy project sales, and delivers the tools buyers and sellers need to transact quickly. We are happy that our platform enabled the deal between Recurrent and Black Mountain Energy Storage, both of whom are doing pioneering work to accelerate storage and clean energy development,” said Patrick Worrall, vice president of Asset Marketplace, LevelTen Energy.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world’s largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years, Canadian Solar has successfully delivered around 71 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built and connected over 6.6 GWp in over 20 countries across the world. Currently, the Company has around 800 MWp of solar projects in operation, 5.3 GWp of projects under construction or in backlog (late-stage), and an additional 18.5 GWp of projects in pipeline (mid- to early- stage). Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006.
About Recurrent Energy (Canadian Solar Subsidiary)
Recurrent Energy is a leading utility-scale solar and storage project developer, delivering competitive, clean electricity to large energy buyers. Based in the U.S., Recurrent Energy is a wholly owned subsidiary of Canadian Solar Inc. and functions as Canadian Solar’s U.S. project development arm. Recurrent Energy has approximately 5 GW of solar and storage projects in development in the U.S.
About Black Mountain Energy Storage
Black Mountain Energy Storage (BMES) is the nation’s fastest growing energy storage development platform. Entrepreneurially spirited and guided by core two principles, velocity and site specificity, BMES is a has developed a +3GW pipeline of optimally sites utility scale storage projects in ERCOT and has ambitions to own and operate a nationwide fleet of battery storage projects. BMES is the youngest of the Black Mountain family of companies and based in Austin, TX.
About LevelTen Energy
LevelTen Energy is the leading provider of renewable transaction infrastructure, delivering the cloud-based software, centralized supply, automated analytics, and expertise required to accelerate clean energy transactions. The LevelTen Platform is the world’s largest online hub for renewable energy buyers, sellers, advisors, asset owners and financiers. The Platform includes the LevelTen Energy Marketplace, which delivers access to more than 4,000 power purchase agreement price offers spanning 21 countries in North America and Europe. It also includes the LevelTen Asset Marketplace, which brings together over 470 renewable energy project developers and owners, and delivers the online tools and expertise they need to buy, sell and finance assets quickly. Together, LevelTen and its partners share #OneGoal to accelerate the energy transition.
