Strata Clean Energy, an American renewable energy developer, and Arizona Public Service Company (APS), a utility manufacturer, recently reached a 20-year power purchase agreement for a 255MW/1GWh battery energy storage system to be deployed.
These two companies signed the agreement at the end of May, and Strata will build, own, and operate this battery energy storage project, but specifically provide electricity to APS during its operation period.
This battery storage project called Scatter Water is located in Phoenix and will increase the city's clean energy generation capacity and help stabilize the grid operation in this drought prone area. A spokesperson stated that the company's investment value is $500 million.
This is due to the bidding conducted by APS company in May last year, which promised to add 1GW of clean energy power generation facilities. The company is the largest utility company in Arizona, providing electricity services to 1.3 million households and businesses.
The duration of the battery energy storage system is similar to the California market standard of 4 hours, which is required by the resource adequacy framework of the California Independent System Operator (CAISO), a power grid operator. This means that battery energy storage projects are mainly profitable through capacity services rather than auxiliary services.
