Battery Energy Storage Developer GridStor Acquires Portfolio of LA Basin Projects From Upstream Energy

Rhea-AI Summary

GridStor has announced the acquisition of a development portfolio of battery storage projects in the Los Angeles area from Upstream Energy. The projects will provide over 500 MW / 2,000 MWh of capacity, enough to power 375,000 California homes. These projects, planned to go online between 2024 and 2026, are crucial for California’s goal of a carbon-free electricity system by 2045. GridStor aims to enhance grid reliability, integrate renewable energy, and support local clean energy initiatives while creating construction jobs.

Positive

• Acquisition of 500 MW / 2,000 MWh battery capacity enhances GridStor's market position in California.
• Strategically located projects near existing infrastructure facilitate quick integration to the electric grid.
• Supports California's transition to a carbon-free electricity system by 2045, aligning with state policies.

Negative

• None.

PORTLAND, Ore.--(BUSINESS WIRE)-- Today GridStor, a developer and operator of grid-scale battery energy storage systems, announced the acquisition of a portfolio of storage projects currently in development in the greater Los Angeles area from Upstream Energy of San Diego. The portfolio consists of multiple projects representing over 500 MW / 2,000 MWh of capacity, or enough to power 375,000 California homes, with proposed on-line dates between 2024 to 2026.

The projects will be going online in an important time for California’s transition to clean energy, as the state works toward a carbon free electricity system by 2045. To meet these goals, the California Energy Commission projects that 49,000 MW of battery storage will be needed.

“California has urgent reliability needs, and battery storage is the best way to consistently incorporate clean energy onto the grid and curtail our dependence on fossil fuels,” said Chris Taylor, CEO of GridStor. “The large size and strategic locations of these new projects will position GridStor to become a major player in the California energy storage market as the transition to clean energy continues.”

The battery storage projects will be built on previously disturbed sites in urban areas in the LA basin area near existing power lines and substations, allowing the batteries to quickly connect to the electric grid upon completion. Once online, the projects will provide needed capacity for regional utilities to ensure power grid reliability and will be key to the increasing volumes of renewable energy being added to the state’s electric grid and managed by California's Independent System Operator (CAISO).

Once operating, the projects will aim to:

• Increase the resilience of the electric grid, helping ensure reliable power supply
• Allow grid operators to integrate more solar and wind power by storing renewable energy in periods of peak generation and delivering it during times of peak demand
• Generate large capital investments on underutilized land near existing grid infrastructure in urban and suburban areas
• Support local, state, and federal clean energy goals
• Create union construction jobs and contribute property taxes for host communities

“We look forward to collaborating with the GridStor team in the deployment of this critical part of the State’s electrical infrastructure,” said Ryan Hulett, Principal at Upstream Energy.

GridStor was established to build the critical infrastructure needed to transition the electricity grid toward a renewable, low-carbon future. GridStor is backed by the Sustainability and Infrastructure Investing groups within Goldman Sachs Asset Management (Goldman Sachs), a leading clean energy investor. GridStor has assembled a team of experienced professionals with over 125 years of combined energy experience to develop, design, construct and operate battery storage systems at scale.

GridStor’s target markets include regions seeing rapid growth of renewable energy sources, retirements of thermal power plants, increasing grid instability due to unpredictable climate events such as extreme heat and wildfires, and areas seeing higher energy demand and aging grid infrastructure.

Marathon Capital acted as exclusive financial advisor to Upstream Energy.

About GridStor

GridStor is enabling the transition to a clean energy grid by deploying flexible grid-connected batteries at scale. GridStor develops, acquires, and operates utility-scale, standalone battery storage projects primarily across North America. Visit us at www.gridstor.com and on LinkedIn.

About Goldman Sachs Asset Management

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005109/en/

Media Contact

Cassidy Monda

cmonda@cplusc.com

503-320-3588

Source: GridStor

FAQ

What are the details of GridStor's acquisition of the battery storage projects?

GridStor acquired a portfolio of battery storage projects in Los Angeles from Upstream Energy that includes over 500 MW / 2,000 MWh of capacity.

How will the acquisition impact California's energy grid?

The acquisition will enhance grid reliability, support renewable energy integration, and help meet California's clean energy goals.

When are the battery storage projects expected to go online?

The projects are planned to go online between 2024 and 2026.

How does this acquisition align with California's clean energy goals?

The projects contribute to California's target of achieving a carbon-free electricity system by 2045, aiding in necessary grid capacity.

What is the significance of the acquired battery capacity?

The portfolio's 500 MW / 2,000 MWh capacity is sufficient to supply power to approximately 375,000 homes in California.