The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Ex-Recurrent Energy execs launch battery storage developer with US$200 million backing

LinkedIn
Twitter
Reddit
Facebook
Email

A group of former directors and executives at Recurrent Energy have launched a new low carbon energy development company with an initial focus on battery storage.

The new company, Nightpeak Energy, has been founded by four ex-colleagues at Recurrent Energy, the US developer subsidiary of vertically integrated solar PV manufacturer Canadian Solar.

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

Nightpeak intends to develop, own, and operate utility-scale flexible generation sources around the US, giving the example of large-scale battery storage as one such asset class.

According to the company’s website, it intends to work with technologies like lithium-ion batteries, long-duration energy storage and hydrogen generators.

It will be active in markets where there is medium-term need to use flexible generation sources to augment the growth of renewable energy and where there is already proven market value to batteries and other sources of grid flexibility. For now, that means large parts of the West Coast US and Texas’ ERCOT market.

Texas-based investment firm Energy Spectrum Capital has backed the developer with equity funding worth up to US$200 million, from its near-US$1 billion Energy Spectrum Partners Fund VIII.

Nightpeak claimed that it also has the backing of a major US lender, the financial terms of which have not been disclosed but is in the form of a letter of credit facility. Between the two sources of funding, the developer is able to execute on its strategy, Nightpeak said.  

In related news, a few days ago, Recurrent inaugurated Crimson Storage, at 350MW/1,400MWh one of the country’s – and world’s biggest – standalone lithium-ion battery energy storage system (BESS) projects. All of Recurrent’s other battery projects to date had been solar-plus-storage, and all of its portfolio has been in California.

In an interview with Energy-Storage.news, Nightpeak co-founder Lucas Moller, speaking in his former role as head of energy storage development at Recurrent Energy, said the degree of solar penetration on the grid in the desert southwestern US meant the value of batteries was being recognised by the market.

Moller said that although all of Recurrent’s BESS and solar-plus-storage activities were in California to date, the state was the frontrunner in a US-wide trend, rather than an outlier.    

“For the buyers in these markets, whether it’s a regulated market like Arizona or an open market in California, the value of that midday energy is so low in every marginal megawatt of renewable power that you buy new plants, you want it to be associated with the ability to shift and not be exposed to that low value in the middle of the day,” Moller said.

Moller’s fellow founders at Nightpeak are CEO and chief development officer Paris Hays; former director of project development at Recurrent, CFO Michael Laubenthal; former head of finance at Recurrent Energy, and chief commercial officer Ben Snieckus, formerly Recurrent director of orgination and structuring.

“The Nightpeak team’s track-record of success developing energy storage and related assets fits well with our approach of identifying strong management teams to build companies that meet the needs of the evolving energy market,” Energy Spectrum partner Mike Mayon said.

Read Next

Premium
May 23, 2024
The Kern County, California hybrid facility will have the capability to generate up to 2GW of solar power co-located with up to 2GW of battery energy storage system (BESS) capacity, spanning approximately 12,875 acres of privately owned land.
May 22, 2024
Developers SENS and Callio have revealed a hybrid project in Finland which could combine a battery energy storage system (BESS), pumped hydro energy storage and solar PV technology.
May 21, 2024
A roundup of large-scale solar and storage news from across the US, with RWE buying three projects from Galehead Development, Origis Energy securing US$300 million for its pipeline and Appalachian Power launching an RFP for 1.1GW of renewables and storage.
Premium
May 21, 2024
Finding developers who want long-term partnerships on projects is key when entering multiple different markets, the head of shipping and energy infrastructure firm BW Group’s energy storage development and operation arm says.
May 10, 2024
Ontario’s Independent Electricity System Operator (IESO) has made Canada’s biggest energy storage procurement to date, selecting nearly 1.8GW of projects through a Request for Proposals (RFP).

Most Popular

Email Newsletter