Prevalon Energy Secures Contract with Idaho Power for New Integrated Battery Energy Storage System (BESS)

Rhea-AI Summary

Prevalon Energy , a Mitsubishi Power Americas company, has secured a contract with Idaho Power for a Battery Energy Storage System (BESS) project, enhancing grid resiliency. The project, with up to 328 MWh capacity, aligns with Idaho Power's clean energy goals and will support the integration of wind and solar energy. Prevalon's comprehensive BESS solution includes maintenance and monitoring services, showcasing the company's expertise in energy storage solutions.

Insights

Energy Market Analyst

The agreement between Prevalon Energy LLC and Idaho Power represents a strategic move in the energy sector, particularly for the growing battery energy storage market. The commitment to a 328MWh battery energy storage system (BESS) is a substantial investment in grid resiliency and aligns with broader trends of integrating renewable energy sources into the power grid.

From an energy market perspective, this project is notable for its scale and the implication that large utilities are increasingly turning to battery storage solutions to manage peak demand challenges. The integration of BESS with Idaho Power's long-term plan to incorporate over 5,000 MW of wind and solar energy indicates a shift towards sustainable energy practices and a reduction in reliance on traditional fossil fuels.

Investors should note the potential for growth in companies that specialize in energy storage solutions, as this technology is critical for balancing intermittent renewable energy production. The long-term service agreement included in the contract suggests a steady revenue stream for Prevalon, which could positively impact Mitsubishi Power Americas' financial performance.

Renewable Energy Consultant

The utilization of Prevalon's Battery Energy Storage Platform by Idaho Power is a significant step towards achieving a 100% clean energy goal by 2045. The bespoke nature of the solution, including safety and security protocols, indicates a tailored approach to meeting the specific needs of the utility, which may set a precedent for future projects in the industry.

From a renewable energy standpoint, the ability to store energy produced from wind and solar sources is essential for mitigating the variability of these resources. The BESS's capability to store and dispatch energy as needed provides a more stable and reliable grid, which is important for the adoption of renewables on a larger scale.

This project's impact on the business landscape extends beyond the immediate stakeholders. It signals to the market that renewable energy and storage technologies are viable and increasingly necessary investments. As such, companies in the renewable energy sector may experience increased demand for similar storage solutions, influencing stock market valuations and investment trends.

Financial Analyst

Analyzing the financial implications of the contract between Prevalon and Idaho Power requires a focus on the project's scale and the service agreement's duration. The financial health of Prevalon and its parent company, Mitsubishi Power Americas, could be bolstered by the predictable income from the service agreement and the potential for additional contracts as the industry grows.

The investment in BESS technology is not just a revenue opportunity but also a strategic positioning within the energy sector. As demand for renewable energy sources rises, the need for energy storage solutions like those provided by Prevalon will likely increase, potentially leading to market expansion and increased shareholder value.

However, investors should be aware of the capital intensity and long-term nature of such infrastructure projects, which may affect short-term liquidity but promise long-term returns. The project's success and its alignment with industry trends toward sustainability could enhance investor confidence and attract further investment in the sector.

• Contract further establishes Prevalon as an experienced global leader in battery energy storage solutions with over 30 projects and 3GWh of utility-scale projects deployed worldwide
• Agreement emerged from a competitive bidding process initiated by Idaho Power to secure resources for providing reliable, cost-effective service to its customers

HEATHROW, Fla.--(BUSINESS WIRE)-- Prevalon Energy LLC, a Mitsubishi Power Americas company, announces it has contracted with Idaho Power for a complete Battery Energy Storage System (BESS) along with a robust long-term service agreement. The project will provide grid resiliency as a net peak solution, helping the utility continue providing reliable power during peak demand periods. The service agreement includes maintenance as well as remote monitoring.

Prevalon and Idaho Power plan to bring critical reliable power needed during peak demand periods to bolster grid resiliency. The project will provide up to 328MWh’s. (Rendering Credit: Prevalon)

The four-hour battery storage project with up to 328 MWh from Prevalon will align with Idaho Power’s plan to integrate more than 5,000 megawatts (MW) of energy from wind and solar projects over the next 20 years. The BESS will ensure energy produced by those intermittent sources can be stored for future dispatch. The company’s “Prevalon Battery Energy Storage Platform,” a complete AC solution including the battery enclosures, inverters, medium voltage transformers and EMS (Energy Management System), will be the cornerstone of the utility’s battery storage project, which will make a significant contribution to Idaho Power’s goal of providing 100% clean energy by 2045. The BESS from Prevalon is designed to meet the utility’s specific needs, including robust safety and security protocols and reliable operations. The project is expected to be fully operational in 2025.

“This order is a testament to the hard work of a very talented team that has positioned Prevalon as a skilled and established business partner for our customers with deep project experience in the fast-moving and growing development of battery energy storage,” said Prevalon President and CEO Tom Cornell. “We place high value on the partnering mindset and are looking forward to working closely with Idaho Power as they incorporate our end-end integrated battery energy storage solution into their long-range plans to ensure a stable and reliable energy grid for their customers.”

Battery energy storage has emerged as a critical technology in the march toward a cleaner, sustainable energy future. Prevalon is committed to innovating battery energy storage products and services to store electrical energy, much of it from renewable sources such as wind and solar, so that it can be utilized at a later time. This approach enables a more efficient, reliable, and sustainable electricity grid as it is designed to respond quickly to grid demand and supply changes.

About Prevalon Energy LLC

Commitment, reliability, expertise. These are the ideals that guide our decision making, design philosophy, and relationship building. Prevalon Energy LLC (Prevalon), a Mitsubishi Power Americas Company, is empowering companies to deploy flexible energy solutions and accelerate a more sustainable energy future. With 10 years of global battery energy storage experience and over 3 GWh of utility-scale battery energy storage projects deployed, Prevalon develops an end-to-end integrated battery energy storage solution that delivers throughout the entire lifecycle of your project and ensures performance. From design and engineering, energy management systems integration, commissioning, and long-term service programs, the Prevalon Battery Energy Storage Platform meets the demands of your energy system today and into the future. For more information, visit PrevalonEnergy.com and follow us on LinkedIn.

About Idaho Power

Idaho Power, headquartered in vibrant and fast-growing Boise, Idaho, has been a locally operated energy company since 1916. Today, it serves a 24,000-square-mile area in Idaho and Oregon. The company’s goal to provide 100% clean energy by 2045 builds on its long history as a clean-energy leader that provides reliable service at affordable prices. With 17 low-cost hydroelectric projects at the core of its diverse energy mix, Idaho Power’s residential, business and agricultural customers pay among the nation’s lowest prices for electricity. Its 2,100 employees proudly serve more than 630,000 customers with a culture of safety first, integrity always and respect for all.

IDACORP Inc. (NYSE: IDA), Idaho Power’s independent publicly traded parent company, is also headquartered in Boise, Idaho. To learn more, visit idahopower.com or idacorpinc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240329763704/en/

Alex Misrahi

Prevalon

+1 407 865-2307

Alex.Misrahi@PrevalonEnergy.com

Brad Bowlin

Idaho Power

+1 208 388-2803

Bbowlin@idahoPower.com

Source: Prevalon Energy LLC

FAQ

What type of project has Prevalon Energy secured with Idaho Power?

Prevalon Energy has secured a contract for a Battery Energy Storage System (BESS) project with Idaho Power.

What is the capacity of the BESS project from Prevalon?

The BESS project from Prevalon has a capacity of up to 328 MWh.

How does the BESS project align with Idaho Power's future energy plans?

The BESS project aligns with Idaho Power's plan to integrate over 5,000 MW of energy from wind and solar projects in the next 20 years.

What services are included in the long-term service agreement between Prevalon and Idaho Power?

The long-term service agreement includes maintenance and remote monitoring services.

When is the Prevalon BESS project expected to be fully operational?

The Prevalon BESS project is expected to be fully operational in 2025.