GridStor Commences Construction on Galveston County Battery Energy Storage Project

Rhea-AI Summary

GridStor has begun construction on its 220 MW, 440 MWh battery facility in Galveston County, Texas. The Hidden Lakes Reliability Project is expected to start operations in summer 2025. The project aims to stabilize the power grid and meet peak demand in the greater Houston area. Located near an existing TNMP substation, the 15-acre site is currently undergoing preparation and foundation work.

The project will provide significant economic benefits, including tens of millions of dollars in tax revenue and up to 100 full-time jobs during construction. Once operational, it will enhance the resilience of the Texas electric grid by participating in the ERCOT electricity market. GridStor, backed by Goldman Sachs Asset Management, focuses on developing battery facilities in regions experiencing high energy demand and grid instability.

Positive

• Construction of a large-scale 220 MW, 440 MWh battery facility in Texas
• Expected to generate tens of millions of dollars in tax revenue for Galveston County
• Will create up to 100 full-time jobs during construction
• Aims to enhance grid stability and meet peak demand in the Houston area
• Backed by Goldman Sachs Asset Management

Negative

• None.

Insights

Energy Infrastructure Analyst

The commencement of GridStor's 220 MW Hidden Lakes Reliability Project in Galveston County, Texas, marks a significant development in the state's energy infrastructure. This 440 MWh battery facility addresses critical needs in the ERCOT market, particularly in managing peak demand and grid stability. The project's summer 2025 operational target aligns with Texas' growing energy demands, especially in the Houston area. The facility's strategic location near an existing TNMP substation enhances its grid integration potential. Economically, it promises substantial benefits, including tens of millions in tax revenue and up to 100 construction jobs. For investors, this project represents GridStor's strong positioning in the rapidly expanding battery storage market, backed by Goldman Sachs Asset Management. The focus on regions with high energy volatility and aging infrastructure suggests a sound long-term strategy, potentially leading to increased market share and revenue growth in the evolving energy landscape.

Environmental Policy Expert

GridStor's Hidden Lakes project exemplifies the growing trend towards large-scale battery storage solutions in response to climate change and grid resilience challenges. This 220 MW facility is a key step in Texas' transition to a more flexible and reliable power system, important for integrating intermittent renewable energy sources. The project aligns with broader policy goals of enhancing grid stability and reducing reliance on fossil fuel peaker plants. Its 440 MWh capacity is substantial, capable of providing significant load-shifting and ancillary services to the ERCOT market. The emphasis on supporting grid resilience during disturbances and peak hours is particularly relevant given Texas' recent history of extreme weather events and grid instability. From a policy perspective, this project demonstrates the increasing role of private sector investment in critical energy infrastructure, potentially influencing future regulatory frameworks and incentives for similar projects across the U.S.

220 MW Texas facility expected to begin operation in summer 2025

PORTLAND, Ore.--(BUSINESS WIRE)-- GridStor, a developer and operator of utility-scale battery energy storage systems, announced today that construction is underway for its 220 MW, 440 MWh battery facility in Galveston County, Texas. The Hidden Lakes Reliability Project (formerly called Evelyn Energy Storage) is expected to begin operations in the summer of 2025.

“Battery energy storage is a safe, reliable solution to meeting fast-growing demands for power in the greater Houston area,” said Chris Taylor, CEO of GridStor. “Hidden Lakes will bolster the electric supply in Texas, providing energy that stabilizes the power grid and contributes to meeting the hours of greatest demand each day. We are eager to provide a near-term solution to support the region's growth while new power sources and transmission infrastructure are built over the longer term.”

GridStor’s Hidden Lakes project is being built near an existing substation of the same name, owned by Texas New Mexico Power (TNMP). Site preparation and foundations placement is now underway on the 15-acre site, with the installation of battery enclosures and supporting equipment scheduled for early 2025. GridStor has collaborated closely with local and regional officials to ensure the facility meets all requirements and standards for safe and effective construction and operations.

The Hidden Lakes project will contribute tens of millions of dollars to the county in estimated sales and use tax revenue, including property taxes benefiting Galveston County and Dickinson Independent School District. It will employ up to 100 full-time skilled tradespeople and apprentices during construction.

Once operating, the Hidden Lakes project will increase the resilience of the Texas electric grid, helping ensure reliable power supply during disturbances and peak hours via participation in the ERCOT electricity market.

GridStor develops and operates battery facilities directly integrated with American power infrastructure, storing electricity to deliver when it is most needed. GridStor is backed by Goldman Sachs Asset Management and comprises a team of seasoned energy professionals with a record of past accomplishments in energy storage and clean energy project acquisition, development, finance and operations. GridStor’s target markets include regions seeing higher energy demand and volatility from unpredictable weather events such as extreme heat, and areas at risk of increasing grid instability due to retirements of older and aging grid infrastructure and power plants.

About GridStor

GridStor strengthens America's power system reliability by building and operating battery projects, storing electricity to deliver when and where it’s most needed. 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

Goldman Sachs Asset Management is the primary investing area within Goldman Sachs (NYSE: GS), delivering investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, alternatives and multi-asset solutions. Goldman Sachs oversees more than $2.8 trillion in assets under supervision as of December 31, 2023. Follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017540177/en/

Media Contact

Alaina Gjertsen

Alaina.Gjertsen@gridstor.com

Source: GridStor

FAQ

What is the capacity of GridStor's Hidden Lakes Reliability Project in Texas?

GridStor's Hidden Lakes Reliability Project in Galveston County, Texas, has a capacity of 220 MW and 440 MWh.

When is the Hidden Lakes battery facility expected to begin operations?

The Hidden Lakes battery facility is expected to begin operations in the summer of 2025.

How many jobs will the Hidden Lakes project create during construction?

The Hidden Lakes project will employ up to 100 full-time skilled tradespeople and apprentices during construction.

What are the economic benefits of GridStor's Hidden Lakes project for Galveston County?

The Hidden Lakes project is expected to contribute tens of millions of dollars in estimated sales and use tax revenue, including property taxes benefiting Galveston County and Dickinson Independent School District.

How will GridStor's Hidden Lakes project contribute to the Texas electric grid?

The Hidden Lakes project will increase the resilience of the Texas electric grid by helping ensure reliable power supply during disturbances and peak hours via participation in the ERCOT electricity market.