The company is expected to continue the development of the storage project that is located outside of Stockton, California
Houston-based Broad Reach Power has announced the acquisition of the 25MW/100MWh Cascade energy storage project in the US.
The storage project has been acquired from a subsidiary of Italian multinational energy company Enel for undisclosed sum.
Under a 20-year agreement signed in 2017, San Francisco-based utility Pacific Gas and Electric Company (PG&E) had selected the Cascade energy storage project for resource adequacy requirements.
Broad Reach is expected to continue the development of the storage project that is located outside of Stockton, California.
Broad Reach Power managing partner and chief executive officer Steve Vavrik said: “Similar to our Texas effort, we have built a significant project portfolio in the California ISO over the last year through greenfield development and M&A, and we are pleased to announce the Cascade acquisition to the market.
“In California and other regions of the west where there is similar renewable penetration and increasing power demand, we are on a mission to develop and acquire storage assets in any stage of the development scale.”
Cascade energy storage project to come online in 2022
Broad Reach is backed by major energy investors EnCap Investments, Yorktown Partners and Mercuria Energy.
The acquisition of the Cascade energy storage project is seen as a major addition to the company’s growing portfolio of battery assets in Texas.
The storage project is anticipated to come online in 2022, following the start of construction next year.
Broad Reach currently holds more than 700MW of projects with signed interconnection agreements across the western US.
In September, the company started construction on two 100MW battery storage projects in Texas, US. To be built with an investment of over $100m, the two energy storage facilities are located in Mason and Williamson counties in Texas.
EnCap Energy Transition managing partner Shawn Cumberland said: “EnCap is bullish on the expanding need for batteries in the power markets and enthusiastic about the growth and performance of Broad Reach Power.
“The EnCap Energy Transition Fund is currently behind approximately 800MW of energy storage projects. We know of no other financial player that has committed as much equity to U.S. battery projects either in operation or under active construction.”
Broad Reach owns a 5GW portfolio of utility scale solar and energy storage power projects in Montana, California, Wyoming, Utah and Texas.