ArcLight Capital Partners announced a $150 million commitment to Elevate Renewable Energy, a company it formed last year to develop and install utility scale, battery energy storage resources co-located with existing power infrastructure to advance the clean energy transition.
Financial terms of the private investment were not disclosed.
Elevate Renewables is initially focused on developing battery storage projects that are co-located with ArcLight Capital's extensive existing portfolio of power infrastructure, with total capacity of 25 gigawatts (gross). The company also has a "brownfield" development pipeline of over 5 gigawatts of potential capacity at over 20 sites. Elevate will also focus more broadly on projects in U.S. electricity markets where the rapid growth of intermittent renewable energy has created a need for flexible, dispatchable zero-carbon energy – a need which can uniquely be met by utility scale battery storage.
"We are excited to announce our commitment to Elevate Renewables to capitalize on what we feel are captive and advantaged brownfield development opportunities within our existing power infrastructure portfolio. ArcLight is one of the largest power producers in the United States today, and this investment further builds upon and will benefit from our extensive track record within the power infrastructure and renewable infrastructure sectors," said Dan Revers, managing partner at ArcLight Capital. "More broadly, we believe battery storage has the potential to be a transformative renewable resource to help drive decarbonization. Especially when paired with power infrastructure, it can provide reliable and sustainable access to electricity."
ArcLight has been a pioneer in renewable infrastructure, having invested over $4 billion in hydroelectric, solar, wind and geothermal generation infrastructure since 2001. The firm's investments include one of the largest wind farms in North America, the largest conventional hydroelectric platform in New England, and the largest solar power platform in Puerto Rico. In creating Elevate Renewables, ArcLight partnered with an experienced battery storage development team that has deep expertise in the development and construction of large-scale battery projects, including facilities at Moss Landing, California (400 MW/1,600 MWh) and DeCordova, Texas (260 MW/260 MWh).
"We are excited to partner with ArcLight Capital and to accelerate the development of this attractive extensive battery storage development pipeline," said Eric Cherniss, head of development at Elevate Renewables. "ArcLight has deep experience as a value-added partner, bringing specialized in-house resources that are instrumental to growth and success with partnerships in the renewable and transition infrastructure sectors."
