Developer PureSky Energy has extended its Non-Binding Offer (NBO) deadline for a 794MW/1,588MWh portfolio of battery energy storage system (BESS) projects in Texas, US, to Friday, 24 January.
PureSky is being represented by Fractal Advisory, part of the Texas-based company Fractal Energy Storage Consultants. Fractal CEO Judy McElroy announced the NBO due date deadline extension via an update emailed to contacts, including Energy-Storage.news.
Referred to as Project Rio Grande, the portfolio includes five late-stage standalone BESS projects, all of which are targeting a Notice to Proceed in late 2025. The projects are detailed in the table below.
| Project Name | County | Utility | Size | Expected COD |
| Flores | Starr | Lower Colorado River Authority (LCRA) | 200MW, 2-hour | April 2027 |
| Gongora Hill | Starr | LCRA | 200MW, 2-hour | April 2027 |
| Chihuahua | Hidalgo | American Electric Power Texas (AEP) | 200MW, 2-hour | April 2027 |
| Minnesota | Hidalgo | LCRA | 94MW, 2-hour | April 2027 |
| Richardson | Hidalgo | AEP | 100MW, 2-hour | April 2027 |
Hidalgo and Starr Counties are located in the Electric Reliability Council of Texas (ERCOT) South load zone. Both counties sit along the US-Mexico border.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
All of the projects for sale are also located in Energy Community-designated areas and are therefore eligible for a 10% bonus on tax credit incentives. These are areas defined as having been historically dependent on fossil fuel industries, including coal, oil, and gas, to support the local economy and workforce, including coal mining and coal-fired power plants.
According to a US Department of Energy map, the five projects in the Rio Grande portfolio are in areas that meet both the required Fossil Fuel Employment (FFE) threshold and unemployment rate requirement to quality as Energy Communities as of June 2024
Fractal has specified that while PureSky is seeking a full sale structuring, the company is open to offers in which it retains a minority equity partnership or other types of partnership that buyers may offer. The company is also open to the sale of individual projects or the entire five-project portfolio.
The timeline of the sale is split into three phases. Phase 1, lasting approximately 4-5 weeks, includes submitting an Expression of Interest, NDA execution, and the bidder introductions. Phase 2 will last 7-8 weeks, including due diligence, completing questions and answers surrounding the sale, and ending with the refined bid. The third phase is the signing or closing of the sale, including identifying the winning bidder, outlining exclusivity and agreement execution.
Hidalgo County is also home to the 200MW/400MWh Anemoi standalone BESS(Premium access article), developed by Plus Power and cleared for operation in June 2024, and Apex Clean Energy’s 100MW/200MWh Great Kiskadee Storage project.
Texas continues to be an active market for BESS projects, driven by ERCOT’s wholesale market’s unique structure, which enables merchant opportunities for storage developers. The state accounted for 25% of a total 3,431MW/9,188MWh US grid-scale battery storage deployments recorded in Q3 2024, according to market research firm Wood Mackenzie’s most recent US Energy Storage Monitor Report.
A trend in the ERCOT market, as discussed in a July 2024 conversation with Energy-Storage.news and Modo Energy(Premium access article), is that revenues are becoming concentrated into a fewer number of days. This leads to an increase in volatility, where prices are either incredibly high or incredibly low.
Buyers of projects like the ones being represented in Project Rio Grande also have to consider the possibility of doing more energy arbitrage on the market.
Fractal is also representing Concurrent in the Project Silver Steel process, a portfolio containing two 10MW standalone BESS projects also located in ERCOT’s South load zone. The projects have an estimated COD of Q2 2026. Non-Disclosure Agreements for the portfolio are due by 20 January. More details can be found here (PDF). Additional details on the Project Rio Grande portfolio can be found here (PDF).
In addition to its advisory and consulting divisions, Fractal Energy Storage Consultants has a software division, Fractal EMS, which supplies energy management system (EMS) platforms to customers including LG Electronics, with which it signed a deal to use the EMS in commercial and industrial (C&I) battery storage systems in 2022.
