- Aug 21, 2020 8:51 pm GMT
Expect to see a LOT more of these projects being initiated over the coming years.
The firm is teaming up with Tenaska to develop and operate nine battery projects totaling nearly 2 gigawatts and up to 7.8 gigawatt-hours of grid storage in California. They will target the coastal hubs of San Francisco, Los Angeles and San Diego to provide the dispatchable capacity that is sorely missing right now as the state struggles with days of critical electricity scarcity.
The portfolio joins Capital Dynamics' earlier acquisition of the Eland solar-storage project, which 8Minute Solar Energy contracted to the Los Angeles Department of Water & Power. CapDyn also acquired Strata Solar's 100-megawatt/400-megawatt-hour battery near Oxnard in June, Greentech Media has learned. That system is under construction, expected online in the first quarter of 2021.
Interesting that Capital Dynamics plans to own these projects. Rather, than sell and take a small profit they are hoping to use batteries to make money on CAISO market - charge batteries when wholesales prices are cheap and discharge in early when prices rise.
Capital Dynamics will fund development and plans to own the projects after they come online in 2022 and 2023; Tenaska will have an opportunity to co-invest.
This comment is spot on...
California has shut down nuclear- and gas-fired capacity without building enough new firm capacity to meet demand after the sun goes down. Capital Dynamics' investment thesis appears tailor-made to tackle the root causes of the grid drama unfolding this week.
Note: the 8.2GWh of energy capacity mentioned in this article is equivalent to about 2.7% of the daily NG/coal generation in CA (CEC-2018). Thirty more projects like this and CA could timeshift solar to replace most of its NG generation.
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