1. Equinor is developing two BESS projects in Texas: Sunset Ridge and Citrus Flatts.
2. Sunset Ridge will connect to STEC’s distribution network in 2024, while Citrus Flatts is expected to be operational on AEP’s network in 2026.
3. Both projects will operate on a fully merchant basis with Danske Commodities providing optimisation services, and the Texas market offers lucrative opportunities for BESS projects.
Equinor is working on two projects in Texas – the 10MW/20MWh Sunset Ridge BESS in Frio County and the 110MW/200MWh Citrus Flatts BESS in Cameron County. Sunset Ridge is expected to connect to the South Texas Electric Cooperative in 2024, while Citrus Flatts will be operational on the American Electric Power network in 2026. Both projects will operate on a fully merchant basis with Equinor’s trading arm providing optimisation services.
BESS projects in the ERCOT market do not typically have long-term contracted revenues, but rather rely on ancillary services and energy trading opportunities for income. During Storm Heather in January, BESS projects earned over $3,000 per MW per day. Third-party optimisation options are starting to emerge in the market, providing project owners with a fixed fee for using their BESS in the market.
While the penetration of third-party optimisation in the ERCOT market is lower than in the UK, some developers see it as a major boost to deployments. Citrus Flatts was acquired by East Point Energy from Black Mountain Energy Storage, one of the prominent BESS developers in the ERCOT market. Equinor, a 45% owner of Noriker Power in the UK, is actively involved in the BESS industry, with projects in both Texas and the UK.