Convergent Energy + Power, a provider of energy storage solutions in North America, has acquired SMT Energy's battery energy storage facility on Staten Island, New York.
The system, once operational, will become one of the largest battery storage systems within the five New York City boroughs. The battery system, connected to the ConEdison power grid as a distributed generation asset, is on track to come online in 2022. Battery storage is integral to the clean energy transition while increasing reliability and reducing costs for ratepayers, Convergent said in a news release.
Revenue from the battery system will be secured through contracted and merchant revenue as determined by New York State Energy Research and Development's Value of Distributed Energy Resources (VDER) program. This is the first known acquisition of standalone storage under the VDER community solar/storage model. Convergent will oversee all remaining development activities, including financing, engineering, procuring, constructing, and operating the asset.
"The complexities of developing grid-connected energy storage assets, combined with the challenges of permitting in New York City, truly make this a unique transaction," says John Switzer, co-founder and managing partner of SMT. "I am extremely proud of both the SMT and Convergent Energy + Power teams for finding a way to execute this mutually advantageous transaction, while also providing substantial benefits to the community and other stakeholders."
"We are thrilled to acquire this unique development opportunity in Convergent Energy + Power's hometown of New York City, where battery storage will play an increasingly significant role in the clean energy transition," says Frank Genova, Convergent's COO and CFO. "We were impressed by the hard work and dedication of SMT throughout the transaction and are looking forward to continuing to add to our portfolio of storage, solar-plus-storage, and solar assets."
"This development—and partnership with Convergent Energy + Power—is another important step in the acceleration of our mission to solve resource adequacy constraints within the grid," states David Spotts, co-founder and managing partner of SMT. "This aligns with SMT's goal of offering solutions toward a 100% carbon-free grid and signals our rapid expansion into promising markets for BESS facilities."
