EDPR lands Michigan solar PPA and 70-MW battery tolling deal

• EDP Renewables secured a 120-MW Michigan solar PPA and a 70-MW/280-MWh battery tolling agreement for a co-located hybrid project.

EDP Renováveis (EDPR) has locked in two cornerstone contracts for a co-located hybrid project in the US, pairing a 120-MW solar plant in Michigan with a 70-MW/280-MWh battery energy storage system (BESS). The structure combines a traditional power purchase agreement (PPA) for daytime generation with a capacity tolling deal for the battery, giving the offtaker dispatch rights while EDPR operates the asset.

Hybrid contracting is gaining traction for a simple reason: value stacking. The solar PPA delivers predictable daytime megawatt-hours at a fixed price, while the tolling agreement lets the counterparty decide when to charge and discharge the BESS, monetizing evening peaks and ancillary services without taking on operational risk. For EDPR, the arrangement diversifies revenue and de-risks merchant exposure; for the buyer, it converts intermittent output into controllable capacity.

On the ground, expect a lender-friendly blueprint: high-efficiency modules on single-axis trackers, DC/AC ratios aimed at annual yield, and a plant controller that meets Midcontinent grid-code requirements for reactive power, frequency-watt response and fault ride-through. The four-hour BESS—containerized lithium-ion blocks behind grid-forming inverters—will provide fast frequency response, voltage support, and black-start capabilities, orchestrated by a supervisory control system that preserves state of charge for high-value intervals.

Michigan’s fundamentals are improving for hybrids. Solar penetration is rising, evening ramps are sharpening, and utilities are leaning on flexible resources to manage weather swings. Co-location helps: shared interconnection lowers costs and round-trip losses compared with standalone storage, while unified controls simplify dispatch and curtailment.

Community and environmental measures are now standard in EDPR’s US builds: traffic and dust controls during construction, storm-water systems sized for intense rain, landscaping to soften views, and wildlife-friendly fencing. End-of-life plans outline recycling pathways for modules and battery components—an increasingly important factor for permitting authorities and lenders.

With both contracts signed, EDPR can move decisively on long-lead procurement—transformers, switchgear, protection systems—and sequence substation works for staged energization. The payoff is strategic as much as commercial: turning sunny midday megawatt-hours into dependable evening megawatts that improve grid reliability and hedge price volatility.