Equinor jumps into ERCOT market with 110 MW of merchant battery projects

AI generated summary

Equinor is moving forward with two energy storage projects in Texas totaling 110 MW/220 MWh that will be involved in the ERCOT markets. These projects mark Equinor's first venture into U.S. battery storage since acquiring East Point Energy in July 2022. The 100-MW/200-MWh Citrus Flatts project in Cameron County is expected to commence construction this year, with operations slated for early 2026, connecting to the AEP Texas system. Another project, the 10-MW/20-MWh Sunset Ridge in Frio County, has already begun construction and will link to the South Texas Electric Cooperative's distribution network.

Following completion, Equinor plans to commercialize these projects through Danske Commodities, aiming for significant returns within the company's renewables range of 4% to 8%. East Point Energy holds a substantial 3 GW battery storage project pipeline throughout the U.S., with a focus on acquiring standalone energy storage, solar, and solar-plus-storage projects that can come online in the near future across various grid footprints. In Texas, where battery storage development is robust, these projects by East Point signal a promising foray into a market that shows substantial growth potential, as indicated by ERCOT's rising storage capacity up to 15,600 MW by August 2025.