March 28 (Renewables Now) - US energy storage investor Eolian LP and its partner, Finnish technology group Wartsila Corp (HEL:WRT1V), have begun commercial operation of two interconnected utility-scale battery storage systems in South Texas with a combined capacity of 200 MW.
The Madero and Ignacio plants are described as the largest fully-merchant and market-facing energy storage facility in terms of energy production built to date globally. They will support the Electric Reliability Council of Texas (ERCOT) market, a joint press release said on Monday.
The sites are owned by the US firm and operated using Eolian software. Construction works on the project started in January 2021, while the Finnish company joined as a partner to provide smart energy management systems a month later.
The facility will benefit from the Investment Tax Credit (ITC) for standalone utility-scale energy storage systems under the Inflation Reduction Act (IRA).
The announcement for the start of commercial operation comes shortly after Eolian successfully closed a tax equity investment in the projects in February.
Eolian did not disclose the amount of the investment made in the sites, noting only that they cost "millions of dollars."
Burlingame, California-based Eolian, a portfolio company of Global Infrastructure Partners (GIP), has funded the development of more than 21 GW of operating generating capacity. The company a year ago closed a USD-925-million (EUR 855.0m) financing transaction with a group of lenders to advance its strategies.
(USD 1 = EUR 0.924)