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California utility signs PPA with NextEra for eight-hour energy storage project

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After this article was published, Energy-Storage.news received additional details on the project from Clean Power Alliance, including the fact it will use lithium-ion technology. See the follow-up piece here.

California utility Clean Power Alliance has inked a 15-year PPA with NextEra Energy Resources for an eight-hour duration energy storage project.

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Clean Power Alliance (CPA) announced the long-term power purchase agreement (PPA) with energy giant NextEra Energy’s clean power arm last week (7 April). The PPA secures the offtake from NextEra’s 75MW, long-duration Desert Sands Energy Storage facility in Riverside County, California, starting in June 2026.

A media statement said that the agreement marks CPA’s “…first executed contract incorporating eight-hour storage capabilities. CPA’s many other battery storage projects incorporate four-hour battery technologies. Compared to a four-hour battery of the same size, an eight-hour battery can discharge twice as much energy.”

It did not reveal the technology used or energy storage capacity but the stated duration and power would make it a 600MWh system. The California ISO’s (CAISO) Resource Adequacy programme, through which utilities secure capacity from generating units, only requires a four-hour duration for energy storage.

Energy-Storage.news has asked CPA for more details and will update this article in due course.

CPA is one of California’s many CCAs, smaller community-owned utilities which provide local communities an alternative to the state’s big three investor-owned utilities PG&E, SDG&E and SCE. This is its fourth battery energy storage system (BESS) PPA deal.

It was in the headlines late last year when its third, a 100MW/400MWh project, Luna came online after a ‘landmark’ debt finance deal was secured.

The PPA deals are being struck after the California Public Utilities Commission (CPUC) ordered load-serving entities to procure new resources between 2023 and 2026, to address so-called mid-term reliability concerns. As part of its share, CPA needs to procure some 59MW of long-duration energy storage which this PPA satisfies entirely.

27 May 2025
London, UK
At the time of writing, Europe had had its most successful year in terms of Power Purchase Agreements (PPAs) with a record 7.8GW of renewable energy contracts signed. As we gather in May 2024 for the third edition of the Renewable Energy Revenues Summit, the energy landscape continues to evolve rapidly, influenced by the beating drum of climate change, volatility around power prices and the need to decarbonise power procurement as well as generation.

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