Prologis Energy sells 400MW/800MWh BESS in Texas

AI generated summary

Prologis Energy has announced the sale of a 400MW/800MWh battery energy storage system (BESS) in Alvin, Texas, strategically located in one of the most congested zones of the Electric Reliability Council of Texas (ERCOT). The project is currently under construction, with expectations for 200MW to achieve mechanical completion by the end of the year. Prologis has successfully secured land, finalized interconnection agreements, and structured a 20-year ground lease and development services agreement, which will directly benefit customers of utility Centerpoint Energy.

As ERCOT continues to be a leading market for BESS development, concerns about projected load growth and electricity scarcity have been raised. A report from Ascend Analytics indicates that the anticipated load growth may not be achievable, particularly due to data center developments. This situation could lead to increased electricity prices, potentially benefiting battery storage developers. Prologis, originally a logistics real estate company, has been expanding into renewable energy projects since 2007 and aims to add more BESS projects in Texas by 2025, contributing to its global portfolio of over 8.5GW of grid-scale storage.