Grid-scale energy storage solutions company Energy Vault Holdings has entered into two contracts to supply infrastructure, engineering, procurement, construction and other services to two Jupiter Power battery energy storage projects.
The two projects are expected to be completed in 2023, and will provide dispatchable capacity in two electricity markets – California and Texas – that have in recent years experienced blackouts and faced other reliability-related challenges. The first project is a 100 MW/200 MWh battery storage facility in Texas, which the companies say will provide energy services and ancillary services in the Electric Reliability Council of Texas footprint. The second is a 10 MW/20 MWh project in California, which will participate in the California Independent System Operator’s resource adequacy program.
“As the largest developer and operator of battery energy storage projects on the ERCOT grid, we see a strong need to continue to execute innovative storage solutions to help relieve grid strain,” Michael Geier, Jupiter Power’s chief technology officer said in a statement. The company is also excited to be building its first project in California, where there is a strong need for additional battery capacity on the grid, he added.
Both California and Texas are facing grid reliability challenges. Last month, amid a heatwave and increasing electricity demand, ERCOT for the second time in a week asked its customers to conserve electricity. Regulators in Texas are crafting wholesale market changes to improve the reliability of the electric system.
California, meanwhile, passed legislation last month that created a new certification process for solar, wind and other clean energy projects, as well as an up to 5 GW strategic electricity reliability reserve fund. Although the state has brought online more than 4 GW of new resources in the last year, CAISO in May estimated that it could face a capacity shortfall ranging from 1,700 MW to 5,000 MW due to extreme weather and other challenges.