Greenbacker Capital Management Acquires Battery Energy Storage System
Greenbacker Capital Management, an asset manager and sponsor of investment vehicles focused on renewable energy, announced the company has purchased, through an affiliated investment vehicle, a to-be-constructed battery energy storage system (BESS) project in Imperial County, California from SunCode LLC.
With a total power capacity of 30 megawatts and the ability to store up to 120 megawatts per hour of energy, Greenbacker says the Holtville BESS project is now the largest standalone battery storage asset in GCM’s “clean energy fleet.”
With the project, Greenbacker continues to build out its standalone energy storage portfolio, a sector that the company believes is critical to the clean energy transition. Greenbacker claims the BESS projects can contribute to both reduce energy costs for consumers and improved grid resiliency, as they store power that can be deployed during times of peak demand or power outage. According to the company, Holtville’s 120 megawatts per hour capacity represents enough energy to power approximately 4,119 homes for a 24-hour period, on average.
“Utility-scale energy storage is central to both our investment thesis and our broader mission of empowering a sustainable world,” said Mehul Mehta, chief investment officer of Greenbacker. “Our successful partnership with SunCode Energy on our largest BESS asset to date will lower power bills while increasing grid stability in California, and we look forward to working together on future clean energy collaborations.”
Holtville represents the company’s first transaction with SunCode Energy, a California-based developer with national solar and storage-based projects.
“We are excited to partner with Greenbacker on its largest standalone energy storage project,” said XJ Chen, managing director of SunCode Energy. “We are committed to bringing the project online this summer and supporting grid resilience in California. We also look forward to expanding our partnership with Greenbacker on more solar and battery storage projects in the future.”
Greenbacker says the project has a long-term power purchase agreement in place with an investment-grade utility and is expected to enter commercial operation in the third quarter of 2023.
According to the company, energy storage is set to play an essential role in reaching California’s goal of 100% renewable energy by 2045 and a recent update from Governor Newsom estimated that 19,500 megawatts of battery storage will come online in the state by 2035, with 52,000 megawatts online by 2045.
Greenbacker Renewable Energy Company seeks to invest in projects that sell clean power under long-term contract to counterparties such as utilities, municipalities and corporations.
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