1. M&A activity in the energy storage sector slowed down but picked up again due to decreased lithium and BESS prices, making projects more attractive for investors.
2. Available Power has sold several 9.9MW/20MWh assets in ERCOT and is currently selling a larger 100MW/200MWh project at Greenport after reaching NTP, with a COD target of February 2026.
3. To address falling project prices, Available Power is taking a standardized, manufacturing-like approach to development, focusing on specific buyer requirements to increase volume, and partnering with EPC specialist Linxon for project construction.
The decrease in lithium and battery energy storage system (BESS) prices has led to an increase in mergers and acquisitions (M&A) activity within the energy storage industry. Projects with previously marginal internal rates of return (IRR) have become more attractive due to the price drops, pushing them to meet the requirements of investors for merchant assets. This has resulted in a lot more activity and interest in energy storage projects.
System integrator Powin’s president referenced the impact of IRR-dependent projects in the industry, noting that M&A activity has increased, particularly in the 9.9MW/20MWh asset class in ERCOT. The company has recently sold three assets of this size, attributed to a higher level of investor education about energy storage.
Available Power, a company with a portfolio of 9.9MW/20MWh projects, has also developed a larger 100MW/200MWh project near Austin. Despite facing challenges in equipment supply delays, the project has reached notice to proceed (NTP) and is currently being sold after pushing back its commercial operation date. This development reflects the changing dynamics in the energy storage industry as prices continue to fall, prompting companies to adopt a more standardized and manufacturing-like approach to project development.