NextEra Energy Resources readies significant portfolio of California energy storage projects to enhance reliability and support the state's clean energy goals

Rhea-AI Summary

NextEra Energy Resources announced a plan to add nearly 700 MW of battery storage projects in California, a move expected to nearly double the current U.S. battery storage capacity. This $800 million investment includes six solar project co-locations. The California Public Utility Commission has approved 523 MW of these projects, which aim to enhance low-cost, emission-free solar energy availability and grid reliability. Additionally, a pipeline of 2,000 MW in battery storage projects is ready, contingent on regulatory approvals and power purchase agreements.

Positive

• Investment of nearly $800 million in 700 MW of battery storage projects.
• Approval of 523 MW by the California Public Utility Commission.
• The planned pipeline of nearly 2,000 MW could meet California's energy storage capacity requirements.

Negative

• The 2,000 MW pipeline is contingent on obtaining long-term power purchase agreements and regulatory approvals.
• Eagle Mountain project requires additional regulatory approval to proceed.

JUNO BEACH, Fla., Aug. 31, 2020 /PRNewswire/ -- NextEra Energy Resources, LLC, today highlighted a suite of clean energy storage developments in the state that could nearly double the total installed capacity of battery storage available in the U.S. today. It plans to build nearly 700 MWs of fully-contracted battery storage projects in California before the end of 2022. The battery storage projects will be co-located at six existing NextEra Energy Resources solar projects and include the previously announced:

• 63 MW at Blythe 110 Solar Energy Center
• 115 MW at Blythe II Solar Energy Center
• 115 MW at Blythe III Solar Energy Center
• 230 MW at the McCoy Solar Energy Center
• 110 MW at the Arlington Solar Energy Center
• 65 MW at the Yellow Pine Solar Energy Center

"California needs significant investment in battery storage to meet its aggressive clean energy goals," said NextEra Energy Resources President and CEO John Ketchum. "NextEra Energy Resources is answering the call with nearly 700 MW of battery storage projects representing a capital investment of nearly $800 million. We are pleased that last week the California Public Utility Commission (CPUC) approved all 523 MW of the projects that required CPUC approval. Once these projects are operational by the end of 2022, Californians will benefit from more low-cost, emission-free solar energy during more hours of the day, as well as improved reliability across the regional electric grid."

In addition to the fully-contracted projects that are expected to come online by the end of 2022, NextEra Energy Resources has a current pipeline of nearly 2,000 MW of shovel-ready or near shovel-ready battery energy storage projects in California that could be deployed to help meet the energy storage capacity requirements put forth by the CPUC. To put that into perspective, the company's planned and pipeline of battery storage projects in California alone is nearly twice the total installed capacity of battery storage in the U.S. today (approximately 1,350 MWs). The build out of the 2,000 MW energy storage pipeline is contingent on obtaining long-term power purchase agreements for the projects as well as the necessary regulatory approvals.

In addition to battery storage, NextEra Energy Resources stands ready to construct Eagle Mountain, a 1,300 MW pumped storage project located near Desert Center, Calif. Eagle Mountain is a fully permitted, shovel-ready project that could provide up to 18 hours of energy storage and represents a bulk energy storage solution that not only diversifies California storage supply, but provides additional grid flexibility in the event of multi-day events such as summer heat waves and winter storms when cloud cover reduces solar generation. While Eagle Mountain is fully permitted, the potential project needs the appropriate regulatory construct in order to move forward.

"For more than 30 years, we've been investing in clean energy in California, starting with some of the state's earliest wind and solar projects," said Ketchum. "We are proud to do our share to help California lead the country to a carbon free, sustainable future." 

Since 1989, NextEra Energy Resources has developed, built, owned and operated wind, solar and energy storage facilities in California, representing more than $7 billion in investments. These projects support more than $45 million in annual payroll for California employees and nearly $18 million in annual property taxes to support schools, roads and essential services in the state.

NextEra Energy Resources

NextEra Energy Resources, LLC (together with its affiliated entities, "NextEra Energy Resources"), is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 21,900 megawatts of net generating capacity, primarily in 37 states and Canada as of year-end 2019. NextEra Energy Resources, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire, Iowa and Wisconsin as part of the NextEra Energy nuclear fleet, which is one of the largest in the United States. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit www.NextEraEnergyResources.com.

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SOURCE NextEra Energy Resources

FAQ

What is NextEra Energy's plan for battery storage in California?

NextEra Energy plans to add nearly 700 MW of battery storage projects in California, representing a $800 million investment.

How much battery storage capacity will NextEra Energy add by 2022?

NextEra Energy aims to add nearly 700 MW of battery storage capacity by the end of 2022.

What approval did NextEra Energy receive for its projects?

The California Public Utility Commission approved 523 MW of NextEra Energy's battery storage projects.

What is the current total installed battery storage capacity in the U.S.?

The current total installed battery storage capacity in the U.S. is approximately 1,350 MW.

How much additional energy storage potential does NextEra have in California?

NextEra Energy has a pipeline of nearly 2,000 MW of shovel-ready or near shovel-ready projects in California.

What challenges does the Eagle Mountain project face?

The Eagle Mountain project needs the appropriate regulatory construct to move forward despite being fully permitted.