SRP signs deal for two more battery storage stations to handle peak power demand
Salt River Project said Thursday that it will add two new battery storage systems that will go online in 2024 with a combined output of 340 megawatts, giving the Arizona utility company more options during times of heavy power demand.
SRP said it signed contracts with Houston-based Plus Power for the two projects, which will be built in Avondale and Gilbert. Both facilities will be owned and operated by a Plus Power subsidiary.
The stations will be grid-charged and will store enough energy to power more than 76,000 average-size residential homes for four hours, SRP said. The utility will be able to decide when to deploy that power back into its grid and said it will typically be during peak demand periods in early evenings when power use is high and renewable resources are not available.
The company said the addition of the stations and battery technology will improve its operational experience, and they will bring SRP’s total battery storage capacity to 800 megawatts by 2024 — more than 10% of SRP’s anticipated 2024 peak-hour electricity demand and enough to power more than 180,000 average size homes.
“SRP is proud of our early investments in battery storage and clean energy,” the utility’s Chief Strategy, Corporate Services and Sustainability Executive Kelly Barr said in a statement. “These early deployments will help both SRP and the industry gain experience with this technology, which will play a major role in reducing carbon emissions.”
Tesla battery technology to power the units
The Avondale station, dubbed Sierra Estrella, will store 250 megawatts of four-hour power; while the Gilbert station, named Superstition, will have 90 megawatts of four-hour storage.
Plus Power will design and build the projects, using Tesla lithium-ion battery technology. Plus Power will incorporate lessons from past incidents at other facilities and will work together with the Avondale and Gilbert fire departments at all stages of the project to prepare emergency response plans.
“We are thrilled to partner with SRP on the Sierra Estrella and Superstition Battery Energy Storage Systems projects which will greatly enhance local grid reliability and provide a variety of tax and jobs benefits to the nearby communities,” said Molly Emerson, director of project development at Plus Power, in a statement. “At a total of 340 MW, these projects represent a bold step forward for the Southwest energy market, and will act as a cornerstone to Plus Power’s growing portfolio of operating projects.”
SRP serves more than a million customers, primarily in and around the Valley. In September, the nonprofit utility’s executive board approved a 4.7% rate increase, which equates to an average of $5.58 more on bills, starting in November. The company also approved a second increase to go into effect in November 2023.
The utility said it will continue to develop storage technologies as part of its commitment to reduce carbon intensity by more than 65% by 2035 and 90% by 2050.
SRP currently has a 25MW battery storage facility in Peoria and a 10MW solar-battery system in Pinal County. In the works and expected to be operational in 2023 are the Sonoran Energy Center, which will be the largest solar-plus-battery project in the state; a solar-plus-battery-storage project at the Storey Energy Center near Coolidge; and the addition of battery storage at the Saint Solar Project, also near Coolidge. Read more about those projects here.