This article has been revised from its original version.
Century City-based solar energy project developer Avantus has agreed to sell an energy-storage project in the Imperial Valley for $110 million.
Avantus, formerly 8minute Solar, is selling the project, called Big Rock 1, to London-based Gore Street Energy Storage Fund.
The project, which is set to begin construction later this year and possibly come online late next year, consists of a battery-storage plant directly connected to the statewide electricity grid with the capacity to store up to 200 megawatts of power. It would draw power from the grid at times of high electricity supply and/or low demand and put power back onto the grid at times of low supply and/or high demand.
Under terms of the sale, Avantus will continue to oversee the development and construction of the project, pairing Gore Street Capital’s global operating and technical experience with Avantus’ technical and market expertise.
According to the announcement put out by Gore Street, the project acquisition costs, including capital expenditures incurred on or around the closing date, is approximately $110 million, including development fees and milestone payments.
“Powering our future requires solutions like Big Rock 1 that are clean, low-cost, responsive and reliable any time of day or night,” Tom Buttgenbach, founder and chief executive at Avantus, said in a statement.
“Now that we have the technology and economics in place to really unleash the potential of energy storage, we need to get to work deploying it in California and other places with vast amounts of existing renewable resources and help bolster grid stability for millions of people,” Buttgenbach added. “We are proud to partner with Gore Street, a leading operator of energy storage in Europe, to make this project a reality.”
For Gore Street Energy Storage Fund, this is its first project in the lucrative California market and its grid under the control of the California Independent System Operator.
“This acquisition is an important milestone in increasing the size and diversification of our international portfolio,” said Alex O’Cinneide, chief executive of Gore Street Capital, the fund’s investment advisor.
“In acquiring Big Rock 1, we are delighted to enter the CAISO grid, supporting California’s massive renewable energy market and broadening our presence in the U.S.,” O’Cinneide added.
