Offtaker discusses NextEra’s eight-hour lithium-ion California BESS project

LinkedIn
Twitter
Reddit
Facebook
Email

NextEra’s eight-hour energy storage project in California will use lithium-ion technology, but ‘battery chemistry did not play a major role in project evaluation’, offtaker Clean Power Alliance told Energy-Storage.news.

CPA, a community choice aggregator (CCA), last week secured a long-term power purchase agreement (PPA) with NextEra Energy Resources for the offtake of Desert Sands Energy Storage facility in Riverside County, as reported here yesterday.

The deal is part of CPA’s requirements under the California Public Utilities Commission’s Mid-Term Reliability order for load-bearing utilities to procure additional resources by 2026. It is the third eight-hour lithium-ion project to be procured by CCAs as part of those procurements (the first and second were announced in January and March respectively last year).

Responding to Energy-Storage.news’ request for comment after our story was published, CPA confirmed the project’s choice of lithium-ion technology and that it would be a 75MW/600MWh system. It has not yet been decided whether it will use LFP or NMC battery cells, however.

This article requires Premium SubscriptionBasic (FREE) Subscription

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

They said that construction on the project is expected to start by 1 December 2025, in time for a June 2026 commercial operation date (COD).

When asked whether other battery chemistries were considered and why lithium-ion was ultimately chosen, the spokesperson said: “The Long-Duration Storage category in the 2022 Midterm Reliability RFO was technology agnostic.”

“Projects were evaluated based on a combination of quantitative and qualitative criteria. Quantitative criteria focus on project performance and economics, while qualitative criteria focus on factors related to environmental stewardship, workforce development, development risk, project location, and impact on Disadvantaged Communities.

“Additionally, commitment to CPA’s Supply Chain Code of Conduct was an important qualitative consideration. Battery chemistry did not play a major role in project evaluation.”

The spokesperson did not comment on Energy-Storage.news‘ suggestion that the long timeframe to construction – more than 2.5 years – will potentially allow for cost reductions for lithium-ion batteries. After a decade of such price falls the price increased in the past two years due to lithium carbonate price spikes.

Haresh Kamath from the Electric Power Research Institute (EPRI), a utility-owned research organisation, previously told Energy-Storage.news he expected lithium-ion to become cost-competitive at 24 hours’ duration by the end of the decade.

15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

May 22, 2026
Battery storage developer and operator Spearmint Energy has closed a US$450 million financing to support its 300MW/600MWh Red Egret battery energy storage system (BESS) project.
May 22, 2026
Long-duration energy storage (LDES) development and investment company Frontier Power USA (FPUSA) has acquired a 480MWh battery energy storage system (BESS) portfolio from developer-operator Bimergen Energy.
May 21, 2026
In this US news roundup, OCI Energy, MN8 Energy, GridStor, and Grenergy advance battery energy storage system (BESS) projects in Texas, California, Colorado, and Georgia.
May 20, 2026
Independent power producer (IPP) Sunraycer Renewables has closed a US$901 million project financing facility, supporting three solar-plus-storage projects in Texas, US.
Premium
May 20, 2026
Energy-Storage.news speaks with Moment Energy’s CTO and co-founder Gabriel Soares, and VP of business development, Carl Mansfield, about recent updates from the second life battery company.