Greenbacker and Aypa Power acquire US battery storage projects
Published in Energy Storage News
Greenbacker Renewable Energy Company and Blackstone-owned Aypa Power have acquired pre-operational battery energy storage system (BESS) developments totalling 110MW of power.
Greenbacker has purchased a portfolio of two standalone lithium-ion BESS sites and two solar porfolios of up to seven projects, all pre-operational, from developer Borrego.
It marks the renewables asset manager’s first direct entry into the standalone BESS market, two months after it invested in storage-focused developer Delorean Power and two years after it bought the rights to a portfolio of behind-the-meter storage systems from Stem Inc.
The front-of-the-meter storage assets are both in New York and have a combined power/capacity of 10MW/40MWh, with scheduled delivery date of H1 2023. They will participate in New York’s Value of Distributed Energy Resources (VDER) programme for BESS which credits operators for electricity they discharge into the grid. The state has a target of 6GW of energy storage deployed by 2030.
Brendan Neagle, EVP of Project Finance at Borrego commented: “While we have been the engineering, procurement and construction (EPC) contractor of record on many Greenbacker projects, this is the first time Greenbacker has bought a significant group of assets from Borrego’s development portfolio.”
The VDER pays out different amounts depending on how valuable the energy is to the network, which is determined by when and where it is generated and fed into the grid. Electricity from solar, storage and other distributed energy resources (DER) is rewarded at an hourly aggregate rate. It favours front-of-the-meter projects which can deliver energy to the grid when most needed without having to consider onsite needs.