Gore Street Energy to acquire 200-MW battery project in California

In its first investment in California, Gore Street Energy Storage Fund PLC (LON:GSF) has agreed to acquire the 200-MW/400-MWh Big Rock energy storage project in Imperial County.

The vendor of the construction-ready project, which has a grid connection scheduled for the second half of 2024, is Avantus, previously 8minute.

The project acquisition costs are about USD 110 million (EUR 103m), including development fees and milestone payments to date for an engineering, procurement and construction (EPC) contract of all battery cells, the London-listed energy storage fund said today.

The battery will be able to benefit from an investment tax credit for up to 30% of qualifying capital spending under the Inflation Reduction Act, it noted.

After the acquisition, the fund will have 27 projects, representing 1,173.2 MW of operational and construction capacity in the UK, Ireland, Germany and the Electric Reliability Council of Texas (ERCOT) and California Independent System Operator (CAISO) grids in the US.

The investor said that CAISO is attractive for energy storage investment due to California's large solar capacity and ongoing retirement of thermal generation. The battery project will provide ancillary services to the grid and will participate in the capacity market and wholesale trading.

(USD 1 = EUR 0.935)

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