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Engineering, procurement and building (EPC) agency Mortensen will ship the challenge utilizing Tesla Megapack 2XLs, the EV large’s grid-scale battery power storage system (BESS) product.
The challenge totals US$500 million of funding, Strata stated, and is supported by the standalone power storage funding tax credit score (ITC), introduced in in the beginning of 2023 as a part of the Inflation Discount Act. Strata didn’t say how a lot of the funding can be coated by the ITC, which might cowl 30-70% of a challenge’s price relying on if it meets numerous standards, together with domestically manufactured elements.
Whereas BESS deployments in Arizona to-date pale compared to the US main markets California and Texas, a number of 1GWh-plus initiatives are being constructed within the state with the long-term tolling agreements offering substantial income certainty to allow the funding.
APS has additionally signed a 20-year tolling settlement – basically an influence buy settlement (PPA) masking the complete output and operation of a challenge – with Recurrent Power for a 1,200MWh BESS challenge in Maricopa County, (Recurrent Power is the developer arm of PV and BESS agency Canadian Photo voltaic) and others.
Learn all latest protection of the power storage market in Arizona right here.
Power-Storage.information’ writer Photo voltaic Media will host the fifth Power Storage Summit USA, 19-20 March 2024 in Austin, Texas. That includes a packed programme of panels, shows and hearth chats from business leaders specializing in accelerating the marketplace for power storage throughout the nation. For extra data, go to the web site.