Strata breaks ground on 1GWh Arizona BESS

LinkedIn
Twitter
Reddit
Facebook
Email

Developer and operator Strata Clean Energy has started construction on its 255MW/1,020MWh Scatter Wash BESS project in Arizona, US.

The project in Phoenix is expected to become operational in 2025 and will provide energy to utility Arizona Public Service (APS) under a 20-year tolling agreement signed in May 2023. The project resulted from an All-Source request for proposals (RFP) issued shortly before.

Engineering, procurement and construction (EPC) firm Mortensen will deliver the project using Tesla Megapack 2XLs, the EV giant’s grid-scale battery energy storage system (BESS) product.

The project totals US$500 million of investment, Strata said, and is supported by the standalone energy storage investment tax credit (ITC), brought in at the start of 2023 as part of the Inflation Reduction Act. Strata didn’t say how much of the investment would be covered by the ITC, which can cover 30-70% of a project’s cost depending on if it meets various criteria, including domestically manufactured components.

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

While BESS deployments in Arizona to-date pale in comparison to the US leading markets California and Texas, several 1GWh-plus projects are being built in the state with the long-term tolling agreements providing substantial revenue certainty to enable the investment.

APS has also signed a 20-year tolling agreement – essentially a power purchase agreement (PPA) covering the entire output and operation of a project – with Recurrent Energy for a 1,200MWh BESS project in Maricopa County, (Recurrent Energy is the developer arm of PV and BESS firm Canadian Solar) and others.

Read all recent coverage of the energy storage market in Arizona here.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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 26, 2026
CATL will supply the BESS units for Grenergy’s two large-scale energy storage projects in Spain, both of which have decade-long tolls.
May 25, 2026
The US installed 9.7GWh of new battery energy storage system (BESS) capacity, according to the US trade association group, the Solar Energy Industries Association (SEIA).
May 25, 2026
Contact Energy has brought online its first grid-scale BESS, a 100MW/200MWh installation at New Zealand Steel’s Glenbrook site.
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.