US solar and storage developer Agilitas Energy has agreed to acquire a portfolio of six standalone energy storage system (ESS) projects, totalling $60m, in the Greater Houston, Texas area.
Agilitas is buying the projects from Gulf States Renewable Energy, subsidiary of GSR Energy, in a deal valued at $75m.
Each of the six projects has an identical design with battery supply from BYD Energy and a system size of 9.96MW/20.721 megawatt hours (MWh).
Two of the six projects are expected to begin commercial operation in 2023, with the other four following in 2024.
Agilitas Energy expects to purchase each of the six projects in the portfolio when they are fully permitted and ready for construction.
The acquisition is Agilitas Energy’s largest acquisition since raising $350m from CarVal Investors last year.
The projects will operate in The Electric Reliability Council of Texas (ERCOT).
ERCOT, as the independent system operator for the region, represents an opportunity for Agilitas Energy to tap into a market increasingly focused on renewables.
As more renewable facilities are built that produce intermittent power, consumers could face increased price volatility that can be stabilised by energy storage solutions such as those under development by Agilitas Energy.
The battery storage systems will deliver low-cost energy for customers of CenterPoint Energy, a domestic energy delivery company headquartered in Houston.
It will enhance the grid’s reliability and resiliency by charging the batteries from the grid at low peak, when there is excess energy and costs are lower, and then subsequently discharging that energy when demand is high.
“Texas has always represented the holy grail of energy and is one of our key expansion markets because it’s a leader in energy production, energy consumption and renewables,” said Barrett Bilotta, President, CEO and Cofounder of Agilitas Energy.
“With this new foothold, our Agilitas Energy team is taking a pivotal step to build value-added energy solutions to a market increasingly burgeoning with renewables.”