1. Arizona Is Getting Its First Standalone Battery Peaker

    Arizona Is Getting Its First Standalone Battery Peaker

    The Salt River Project will build Arizona’s first standalone energy storage plant for peak power.

    The utility has contracted for a 20-year power-purchase agreement with AES, which will own and operate the 10-megawatt/40-megawatt-hour system provided by Fluence. The project will sit in Chandler, outside of Phoenix, to deliver peaking capacity to the metropolitan area.

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    1. The Southwest has a peak that's shifting later in the day as solar penetration increases.
    2. It reflects a capital-efficient decision on the part of SRP, as the utility already likely faces an overgeneration situation on its grid and seems confident that the standalone asset will provide peaking benefits without the need of an onsite generator.
    3. We do find that utilities with territory in metropolitan areas have challenges siting local generation within their territory.
    4. We're seeing utilities get more comfortable with storage for different applications as commercial reference points become available for those applications.
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