Ameresco Announces a new Contract for a Battery Energy Storage System Asset with Snohomish County Public Utility District (PUD)
Ameresco (NYSE: AMRC), a cleantech integrator, has announced a significant contract with Snohomish County Public Utility District (PUD) to build a 25-megawatt (MW) battery energy storage system (BESS) in Washington State. This project, the largest standalone battery installation in the Pacific Northwest, aims to enhance electrical system reliability and reduce energy price volatility. The 20-year capacity agreement guarantees 100 megawatt-hours (MWh) of energy storage, with a 25-year tolling agreement making Ameresco the asset owner and Snohomish PUD the exclusive customer. Construction is slated to begin in late 2024 and be operational by late 2025.
- Ameresco secured a 20-year contract with Snohomish County PUD for a 25 MW battery energy storage system.
- The project represents the largest standalone battery installation in the Pacific Northwest.
- The 25-year tolling agreement ensures Ameresco remains the asset owner, providing long-term revenue.
- Construction will not begin until late 2024, with operational status expected by late 2025, posing potential delays.
Insights
Ameresco's new contract with Snohomish County Public Utility District (PUD) to construct a 25-megawatt battery energy storage system (BESS) marks a significant development in the Pacific Northwest energy market. Battery storage systems like this play a important role in stabilizing the grid, especially as the region increasingly relies on renewable energy sources with variable output, such as wind and solar.
This project, distinguished as the largest standalone battery installation to date in the region, signifies a major leap forward for energy storage capabilities. A 20-year guaranteed capacity of 25 MW and 100 MWh ensures long-term stability and reliability for Snohomish PUD. This is particularly relevant given the volatility often associated with renewable energy prices. By mitigating these fluctuations, the PUD can offer more predictable and affordable energy rates to its customers.
From a financial perspective, it's beneficial for Ameresco to maintain ownership under the 25-year tolling agreement. This structure allows Ameresco to generate consistent revenue over a prolonged period, potentially enhancing the company's financial stability and shareholder value. It's also worth noting that such contracts form a stable revenue model, which could make Ameresco's stock more attractive to risk-averse investors.
The project's development timeline, with construction starting in late 2024 and operational status expected by late 2025, gives investors a clear roadmap. However, it's important to remain cautious about potential delays or cost overruns that could impact the project's success.
The implementation of this large-scale battery energy storage system aligns well with broader trends in the renewable energy sector. Battery storage is becoming increasingly critical as utilities shift towards more sustainable energy sources. These systems help address the intermittency challenges associated with renewables by storing excess energy during periods of high generation and releasing it during periods of high demand.
What makes this particular project noteworthy is its scale and the long-term commitment involved. A 25 MW capacity, with 100 MWh storage, is significant for the region and could serve as a model for other utilities aiming to enhance grid reliability and flexibility. By ensuring a stable and reliable energy supply, this project supports the integration of more renewable energy into the grid, advancing Washington State's clean energy goals.
Additionally, the innovative collaboration model between Ameresco and Snohomish PUD, where the asset owner and the customer are distinct entities, showcases a scalable approach that could be replicated in other regions. This could foster more public-private partnerships in the renewable energy sector, driving further advancements and investments.
However, while the benefits are clear, it's essential to monitor the project's execution closely. Technical challenges, regulatory hurdles, or unforeseen operational issues could affect the project’s outcome and the overall perception of such large-scale energy storage solutions.
25-megawatt battery energy storage system to enhance utility’s system reliability as the largest standalone battery installation to date in the Pacific Northwest
The installation represents the largest standalone battery project to date in the Pacific Northwest. The 25-year tolling agreement keeps Ameresco as the asset owner and Snohomish PUD as the exclusive customer of the project. The BESS will provide the PUD with enhanced electrical system reliability and flexibility while reducing exposure to energy price volatility, making the project a significant milestone in the advancement of sustainable energy solutions in
“This project represents a paradigm shift in the Pacific Northwest energy industry,” said Nicole Bulgarino, Executive Vice President at Ameresco. “By collaborating with Snohomish PUD, we are pioneering a unique model where the owner and the customer are distinct entities, showcasing the versatility and scalability of utility-scale storage solutions.”
Construction on the energy storage asset is currently expected to begin in late 2024 and be operational in late 2025. It allows Ameresco to provide Snohomish PUD the flexibility to utilize the battery energy storage system for charging and discharging activities under the tolling agreement. This long-term arrangement underscores both organizations' commitments to driving innovation and sustainability within the region.
“We’re excited to work with Ameresco on making this new battery energy storage project a reality,” said John Haarlow, Snohomish PUD CEO/General Manager. “Energy storage is a critical component to helping us keep the grid reliable and affordable while also meeting our clean energy goals.”
To learn more about Ameresco and the company’s clean energy solutions, visit www.ameresco.com.
About Ameresco, Inc.
Founded in 2000, Ameresco, Inc. (NYSE:AMRC) is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes solutions that help customers reduce costs, decarbonize to net zero, and build energy resiliency while leveraging smart, connected technologies. From implementing energy efficiency and infrastructure upgrades to developing, constructing, and operating distributed energy resources – we are a trusted sustainability partner. Ameresco has successfully completed energy saving, environmentally responsible projects with Federal, state and local governments, utilities, healthcare and educational institutions, housing authorities, and commercial and industrial customers. With its corporate headquarters in
About Snohomish PUD
Created by a vote of the people in 1949, Snohomish County PUD is the second largest public power utility in
The announcement of the development of a renewable energy asset by Ameresco is not necessarily indicative of the timing or amount of revenue from such asset, of the company’s overall revenue for any particular period or of trends in the company’s overall total assets in development or operation. This project was included in our previously reported assets in development as of March 31, 2024.
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Media:
Ameresco: Leila Dillon, 508-661-2264, news@ameresco.com
Source: Ameresco, Inc.
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