Securing large-scale storage supply is a competitive advantage these days as demand for stationary batteries is increasing substantially, potentially outpacing supply. So, two developers, Arevon and SB Energy, signing deals for 2 GWs from two different suppliers last week is significant.
Arevon + Tesla Megapacks
Arevon secured a 2 GW master supply agreement for Tesla Megapacks, which continues a long-standing relationship between Arevon and Tesla. By the end of 2021, Arevon will have overseen construction and operation of 250 MW/1,000 MWh of battery energy storage systems employing Telsa Megapacks at sites in California and Nevada. The Megapack 2 product is anticipated to support the Falcon portfolio, a joint undertaking of Arevon and energy company Tenaska to develop standalone storage projects in California load centers over the next four years.
These facilities can be configured to provide up to four hours of battery-delivered energy during peak times of day. Well-sited standalone battery systems improve local reliability and can help prevent grid outages.
SB Energy + ESS
SB Energy, a wholly owned subsidiary of SoftBank Group Corp., entered into an agreement with ESS Inc. to deploy 2 GWh of its long-duration iron flow batteries through 2026. SB Energy owns five utility-scale solar projects totaling 1.7 gigawatts (GW) in Texas and California, which are currently in operation or construction, and is developing a multi-gigawatt pipeline of domestic solar and storage projects to be built over the next few years. ESS recently announced it would become a public company through a merger with a special purpose acquisition company, ACON S2 Acquisition Corp.
In connection with the agreement, the first ESS system has already been delivered to an SB Energy location in Davis, Calif., and will be commissioned in October 2021. SB Energy plans to install additional ESS flow battery systems to complement its expanding portfolio of solar power projects in Texas and California, two of the fastest-growing markets for long-duration storage in the U.S.
“ESS’s unique ability to manufacture and ship batteries using iron, salt, and water is a game-changer, enabling SB Energy to offer our customers safe, sustainable and low-cost energy storage today,” said Rich Hossfeld, Co-Chief Executive Officer at SB Energy and ESS Board Member. “Long-duration storage is absolutely critical to providing flexible, affordable renewable energy at scale and aligns perfectly with the Biden administration’s ambitious clean energy initiatives. SB Energy is excited to continue its partnership with ESS and deploy the company’s domestically manufactured batteries into the vast and rapidly growing market for energy storage.”
ESS also recently announced that it had closed an order with Enel Green Power España to deliver 17 ESS Energy Warehouse battery systems with a combined capacity of 8.5 MWh. The project will support a solar farm in Spain as a part of a broader EU-wide engagement, providing resilience for the local power grid.
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