Acciona Energía has agreed to acquire the 190MW/380MWh battery energy storage system (BESS) project Cunningham in Texas from Qcells, a subsidiary of the South Korean industrial group Hanwha Group.
Under the terms of the agreement, the Spanish energy company will also acquire a portfolio of six BESS projects at an advanced stage of development. The combined capacity of the projects is more than 1GW/2GWh.
Located 85.5km from Dallas, the Cunningham BESS project comprises 159 cabinets of 2.4MWh blocks produced by a solar inverter supplier Sungrow and liquid-cooled cells developed by CATL, a Chinese battery manufacturer.
The Cunningham facility is expected to be operational in Q1 2023.
Once operational, the Cunningham facility will be the largest operating battery energy storage project on the Texas grid, stated Acciona Energía.
Acciona Energía CEO Rafael Mateo said: “We have been working on battery storage for more than 10 years and we see the technology is now ready for commercial deployment and to be included in our growth strategy.
“This transaction is an important milestone, as it includes the biggest BESS utility-scale project in one of the world’s most developed BESS markets.
“With 1,214MW renewable capacity operating and under construction in Texas, this deal is a good opportunity for ACCIONA Energía to strengthen our presence and optimize the risk profile of our portfolio.”
The BESS project portfolio is said to deliver power and related services to the Electric Reliability Council of Texas (ERCOT).
ERCOT is an independent system operator that manages the transmission, distribution and commercialisation of electricity for about 90% of Texas’ electric load.
The Cunningham project along with other six battery energy storage projects are eligible for the Investment Tax Credits (ITCs) provided by the US government.
It is expected to enhance energy security, bolster the deployment of renewables, and reduce the cost of energy under the Inflation Reduction Act (IRA).
Qcells USA president Jae Kyu Lee said: “Qcells is proud to provide our unique development and EPC solutions to ACCIONA Energía and bring this project to life, while also looking forward to furthering our collaboration as part of a long-term partnership.
“We are confident that these projects will benefit the entire energy sector in Texas by making clean, reliable energy more accessible for everyone.”