Real estate platform and energy storage investor Prologis Energy has sold a 400MW/800MWh battery energy storage system (BESS) located in Alvin, Texas, US.
Near Houston, Texas, the project is in one of the Electric Reliability Council of Texas’ (ERCOT’s) most congested zones.
Prologis secured the land, finalised an interconnection agreement, permitted the project, procured long-lead equipment and structured a 20-year ground lease and development services agreement.
The BESS is currently under construction, and Prologis expects 200MW to reach mechanical completion by the end of the year.
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Prologis says the project will directly benefit customers of utility Centerpoint Energy.
Centerpoint Energy recently broke ground on a 160MW/320MWh BESS with developer SMT Energy near Prologis’ BESS.
ERCOT remains an incredibly popular market for BESS development, leading energy storage installations in Q4 2024.
A recent report from energy software and consulting group Ascend Analytics shows that ERCOT’s projected load growth over the remainder of the decade may be unachievable. Especially from data centre development, load growth in the state is becoming an increasing concern.
Ascend Analytics’ managing director of markets and strategy, Dr Brent Nelson, told Energy-Storage.news in an interview that the resultant increase in electricity scarcity and price volatility would be good for battery storage developer and investors’ revenue streams.
At the same time, both state and federal-level policies could have an adverse effect on building projects in the state.
Prologis, primarily known as a logistics real estate company, was founded in 1983. In 2007, the company began developing renewable energy projects as well.
In 2024, Prologis deployed its first BESS in Texas, in the city of Arlington. The project is co-located with a distribution centre also constructed by Prologis.
At that time, the company noted its intention to add nine more BESS projects to the state by the end of 2025.
Currently, the company claims to have over 8.5GW of grid-scale storage deployed and in development globally, with 47MW of storage capacity in the Americas.
Its other BESS projects, smaller scale than the most recently announced one near Houston, are located in Washington, Oregon, California, Arizona and New York.
