Dive Brief:
- Software company Ascend Analytics and clean energy company Peregrine Energy Solutions, both in Boulder, Colorado, announced plans on Wednesday to auction nearly 900 MW of energy storage.
- The so-called Crown Jewel portfolio will be sold on Ascend’s Energy Exchange, a marketplace for energy projects that Ascend CEO Gary Dorris said is “like Ebay for power plants.” The portfolio includes projects placed in strategic locations for energy storage, representatives of both companies said.
- The buyer selection process will conclude in early June, Ascend said.
Dive Insight:
Peregrine Director of Development Clay Canning said the company can’t disclose precise locations of the six projects, but said they are in Oklahoma, Texas, Wisconsin and Virginia, and are part of the ERCOT, PJM, MISO and SPP power grids.
The projects are strategically located to give buyers the best potential to generate revenue, Ascend CEO Gary Dorris said.
The six projects are in locations with comparatively high congestion pricing, where energy costs rise substantially when the grid is strained and owners of energy storage receive larger payouts for returning energy to the grid, Canning said.
The energy storage will receive high prices for the energy they return to the grid “not just some days but most days,” he said.
In addition, the projects are either isolated or in a place with few spots for competing energy storage, Canning said.
“One of them is literally on an island,” he said.
A dearth of competition also means buyers won’t need to worry about transmission lines bypassing their energy storage, Canning added.
“If someone builds a transmission upgrade that bypasses your location then the congestion is gone,” he said.
Peregrine has a portfolio of 6 GW in energy storage, some of which it owns and the rest it plans to sell, Canning said.
