ENGIE Storage has announced it will supply and operate a 19 MW/38 MWh portfolio of six energy storage sites that will contribute to the Solar Massachusetts Renewable Target Program and participate in ISO-New England wholesale markets.
The combined solar and storage portfolio, developed and operated by Syncarpha Capital, LLC, a New York-based private equity firm, is the first utility-scale solar plus storage offering to benefit from ENGIE’s new integrated development, supply and services offering for wholesale market participation.
ENGIE Storage will provide Syncarpha a complete, turn-key GridSynergy hardware and software solution, and will operate the storage system for 20 years. Further, under a Market Participation Agreement executed for each of the six energy storage sites, ENGIE Storage will pay fees in exchange for the rights to operate the solar and energy storage system in the ISO-NE wholesale capacity, reserves, and frequency regulation markets.
This unique arrangement delivers substantial added contracted revenue for the projects while implementing ENGIE Storage’s energy storage sales platform for the long-term benefit of each of the six combined solar and storage sites.
“Syncarpha selected ENGIE Storage for the portfolio due to ENGIE’s sophisticated and integrated offer, leading software, operational experience, and bankability,” said Cliff Chapman, chief executive officer at Syncarpha. “Working with ENGIE creates incremental value for these assets in addition to the SMART program and meets the financial and risk requirements of tax equity investors and lenders.”
ENGIE Storage’s GridSynergy software platform, which has been fully integrated with the trading capabilities of recently acquired Genbright, will seamlessly ensure Investment Tax Credit and SMART program compliance while bidding and operating the energy storage systems in ISO-NE wholesale markets. Under its long-term service and operation contracts for the sites, ENGIE Storage is, in essence, guaranteeing SMART program revenues. The arrangement virtually eliminates storage project operational risk at the six battery storage sites.
“Syncarpha has extensive experience developing and operating solar assets in Massachusetts, said Christopher Tilley chief executive officer at ENGIE Storage. “They have been great to collaborate with on such a pioneering business model. Through this agreement we will be able to leverage our strengths to achieve a greater outcome for both parties. This announcement will be the first of many as ENGIE Storage is executing more than 100MWh of solar and storage contracts with market participation agreements for the SMART program.”
The projects are expected to come online in late 2019 and early 2020.
