Enerdatics data suggests that the country observed 21 GW of solar transactions in 2022 that involved solar-plus-storage assets. Acquisitions were led by listed independent power producers (IPPs) and utilities in states such as Texas and California, which accounted for ~74% of the capacity transacted. Enerdatics understands that the increased activity is being driven by the strong economics of storage systems, amid price volatilities and rising grid intermittencies in the country. The CEO of Black Mountain Energy Storage, one of the top battery energy storage system (BESS) developers in Texas, recently mentioned that storage assets are generating returns of around 20%, compared with single digit average returns for solar and wind projects in the state. Investors are rushing to take advantage of the market opportunity, which has been further enhanced by the incentives from the inflation reduction act.
Recent deal: AES Corporation acquired the 2 GW Bellefield solar-plus-storage project in Kern county, California from Avantus. Bellefield, which is considered the largest permitted solar plus storage asset in the country, is currently in late stages of development, with commercial operation expected in two phases in 2025 and 2026. Each phase will consist of 500 MW of solar and up to 500 MW of four-hour duration battery energy storage system (BESS). First phase of the project is already contracted to an existing AES corporate customer, under a 15-year power purchase agreement (PPA).
Other significant deals: ENGIE recently acquired a 1.25 GW solar plus storage portfolio in Arizona from ReVolve Renewable Power. ENGIE’s acquisition build upon their purchase of combined solar-storage assets from Belltown Power and Photosol last year. Other major companies including three Wisconsin utilities, as well as international players Eni and Eolus, have also made significant moves in the country in 2022.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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