esVolta Secures $110M for California Battery Project

• EsVolta secures $110M to power California's energy future with its cutting-edge Hummingbird battery storage project, set to enhance PG&E's sustainability by 2025.

EsVolta LP has secured $110 million in tax equity financing from Greenprint Capital Management to support the development of its 75-MW/300-MWh Hummingbird battery energy storage system in San Jose, California. This facility aims to provide resource adequacy capacity for Pacific Gas and Electric Company (PG&E) under a long-term contract, while also supplying rapid energy responses and ancillary services to the California Independent System Operator (CAISO) market.

Construction of the lithium-ion battery energy storage system is already ongoing, with completion anticipated by 2025. EsVolta was selected for this project in 2018, as PG&E seeks to replace three gas-fired power plants. The company currently holds 1.5 GWh of energy storage assets across various projects, reflecting its significant role in California's energy landscape.

How will EsVolta's Hummingbird project impact California's energy landscape and PG&E's infrastructure?

Impact of EsVolta's Hummingbird Project on California's Energy Landscape and PG&E's Infrastructure

• Enhanced Grid Reliability: The Hummingbird project will increase grid reliability by providing rapid energy responses to fluctuations in demand and supply, mitigating potential outages.
• Supports Renewable Energy Integration: By offering flexible energy storage, the facility will facilitate higher integration of renewable energy sources like solar and wind, contributing to California's ambitious renewable energy goals.
• Resource Adequacy for PG&E: The project aims to deliver resource adequacy capacity under a long-term contract with PG&E, which is critical for meeting California's energy demands and regulatory requirements. Reduction of Fossil Fuel Dependency: This battery storage system aligns with California’s strategy to phase out gas-fired power plants. It will help replace the capacity lost from these plants, reducing reliance on fossil fuels.
• Economic Benefits: The $110 million investment in the Hummingbird project signifies economic growth, likely leading to job creation during construction and operational phases, boosting the local economy.
• Cost-Competitive Energy Solutions: With advancements in battery technology, projects like Hummingbird are positioned to provide cost-effective solutions for energy storage compared to traditional power generation sources.
• Sustainability Leadership: EsVolta’s commitment to developing energy storage reflects a shift towards sustainable energy solutions in California, establishing a model for other states and regions aiming to transition to cleaner energy.
• Support for CAISO Market: The ability to provide ancillary services to the California Independent System Operator (CAISO) enhances system stability and supports the overall market during peak demand times.
• Potential for Future Expansion: Success with the Hummingbird project could pave the way for additional battery storage projects in California, further enhancing the state's capacity for clean energy solutions.
• Improved Energy Management: The energy storage system will enable better management of energy resources, helping PG&E optimize its operations and align with California's energy policy objectives.
• Community Resilience: By enhancing local energy resources, the project can contribute to community resilience against power outages, particularly during high-demand periods such as heat waves.
• Benchmark for Future Projects: The development and outcomes of the Hummingbird project may set a benchmark for future energy storage initiatives, influencing policy and investment in similar technologies across the state.