US-based renewable energy developer D. E. Shaw Renewable Investments (DESRI) has signed a power purchase agreement (PPA) for a 160-megawatt/640-megawatt-hour (MW/MWh) battery energy storage system (BESS) to be built in California. The agreement was made with the Sacramento Municipal Utility District (SMUD), which owns the land where the project will be located.
The long-term deal will support SMUD’s efforts to improve grid stability, enhance the performance of its renewable energy resources, and advance its goal of becoming carbon-free by 2030.
The new storage system, named the Dry Creek BESS, will be constructed in Sacramento County. It will be connected to existing transmission lines at Rancho Seco, a former nuclear power plant that now hosts a 160-MW solar facility. The battery system will store energy from renewable sources and other available electricity on SMUD’s grid. It is expected to begin operating in September 2027.
SMUD and DESRI have been collaborating on the project for several years.
“This battery storage project represents another significant milestone in SMUD’s Zero Carbon Plan as we work toward carbon-free electricity by 2030,” said Lora Anguay, SMUD’s Chief Zero Carbon Officer.
The project reflects growing momentum behind large-scale energy storage as utilities look to balance increasing amounts of renewable energy with stable and reliable power delivery.
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