The Energy Storage Report 2024

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

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.

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

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.

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.

22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
18 March 2025
Austin, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2025!

Read Next

May 24, 2024
The new tariffs on batteries from China will increase costs for US BESS integrators by 11-16%, consultancy Clean Energy Associates said, adding that new guidance around the domestic content ITC adder will make it easier to access.
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 23, 2024
The Gore Street Energy Storage Fund’s international diversification helped it maintain average revenues across its portfolio, which spans the Great Britain (GB), Ireland, Germany and Texas, US.
May 23, 2024
Innergex Renewable Energy has started operating a 35MW/175MWh battery energy storage system (BESS) in Chile, its second large-scale BESS in the country.
Premium
May 22, 2024
We hear from developers, IPPs and upstream battery sources about the US’ decision to massively hike tariffs on batteries and battery components from China.

Most Popular

Email Newsletter