New York’s race to the top: Ares, Dimension developing 1200MWh ESS portfolio

Developers including GlidePath and Key Capture Energy have raced into New York's rapidly expanding energy storage deployment wave. Image: Key Capture Energy.

Ares Infrastructure and Power has signed off on a partnership with Dimension Renewable Energy that will see both parties build and develop a portfolio of utility-scale battery energy storage projects in the state of New York.

These energy storage projects are currently under development by Dimension. Following the completion of certain development thresholds, funds managed by Ares Infrastructure and Power will acquire and construct the installations. 

This portfolio of projects includes a diverse mix of installations across the state, including project sites on Long Island. The total size of the portfolio is over 300MW / 1,200 MWh. It's the latest in a wave of projects announced in the state, which has pushed forward a target for 3,000MW of energy storage by 2030, supporting a wider target for 50% of electricity to come from low carbon or renewable sources by that year.

Keith Derman, partner and co-head of Ares Infrastructure and Power, said: “This transaction will provide our investors with access to an attractive growth opportunity in the utility-scale battery storage sector. We are witnessing a historic transformation of the nation’s energy industry. Projects like these demonstrate that battery storage is not only an enabling technology for the continued growth of renewables, but also an investable sector in their own right.”

This portfolio stands as the third battery storage investment for Ares Infrastructure and Power and adds to the company’s strategy of more than 60 investments in the climate infrastructure sector, representing over US$2 billion of invested capital. Energy-Storage.news reported back in 2016 as the company invested in provider Green Charge - later acquired by ENGIE and rebranded ENGIE Storage - as it built out numerous commercial and industrial (C&I) peak shaving projects for customers in California.

The announcement follows numerous reported ESS projects in the state, both completed and in the development pipeline, the most recent being GlidePath's 320MWh portfolio across four sites in the Lower Hudson Valley, with GlidePath chief development officer Peter Rood commenting to this site that "New York will be a leading U.S. market for energy storage," with both network operator NYISO and the state's governing administration led by Andrew Cuomo recognising "the value of energy storage in improving system reliability while enabling additional renewable resources to come online."

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