Arevon signs long-term offtake with non-profit utility MCE for 1GWh California BESS

LinkedIn
Twitter
Reddit
Facebook
Email

Renewable energy developer-operator Arevon has entered into a long-term offtake agreement for a 250MW/1,000MWh battery energy storage system (BESS) in California with community choice aggregator (CCA) MCE.

The tolling agreement for the Cormorant Energy Storage Project in Daly City will see Arevon build and operate the BESS for the needs of MCE, a non-profit utility with 1.5 million customers across Contra Costa, Marin, Napa, and Solano counties.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

A first phase of 188MW will begin construction in Q1 2025 and will become operational in 2026. Arevon didn’t reveal when the second phase of the project would come online.

Such long-term tolling agreements and power purchase agreements (PPAs) in California have helped make it the leading US state for BESS deployments, with 7.6GW online as of the end of March 2024, according to transmission system operator (TSO) CAISO. Such long-term agreements help project owners acquire financing from financial institutions that can be typically risk-averse, such as banks.

For example, Arevon recently secured a US$1.1 billion debt and tax equity package for a solar-plus-storage project, also in California, which has a long-term PPA agreement with a for-profit utility Southern California Edison (SCE). In November, the firm claimed to have completed “one of the first” investment tax credit (ITC) deals using new a transferability mechanism under the Inflation Reduction Act.

“Battery storage is critical to fast-tracking the clean energy transition. Through our partnership with Arevon, we are bringing online our largest battery storage project yet to support clean, reliable, and affordable electricity service for the Bay Area residents and businesses we serve,” Dawn Weisz, MCE CEO said.

2 December 2025
NH Collection Vittorio Veneto, Rome, Italy
Across two packed days, the Summit focused on three core themes: revenue & trading, the lifecycle of the battery, and optimisation tools. Attendees explored innovative strategies for enhancing asset performance and longevity, with a spotlight on key markets like Germany, Italy, and the UK. Stay tuned for details on the 2025 edition of the Battery Asset Management Summit Europe, where we’ll continue to chart the path forward for energy storage asset management.

Read Next

May 21, 2025
Installed battery storage capacity in California, US has grown from 771MW in 2019 to more than 15,500MW as of 31 January, 2025.
Premium
May 20, 2025
Matthew Biss examines legislative moves regarding the safe siting and deployment of battery storage in California, the biggest market by state in the US.
May 20, 2025
Developer and independent power producer (IPP) Zelestra has ordered 1GWh of BESS technology plus PCS equipment from Sungrow for a project in Chile.
May 19, 2025
Engie North America has partnered with CBRE Investment Management (CBRE IM) on a 2.4GW battery energy storage system (BESS) portfolio in Texas and California, US.
May 14, 2025
California utility Pacific Gas and Electric (PG&E) has announced its intent to return the Elkhorn battery energy storage system (BESS) to service by 1 June.

Most Popular

Email Newsletter