Atlantica Sustainable Infrastructure has inked two 15-year power purchase agreements (PPAs) for its Coso Batteries 1 and Coso Batteries 2 energy storage projects in California. The undisclosed investment-grade utility is the off-taker for these agreements.
These PPAs, detailed in Atlantica's third-quarter earnings report, operate as tolling agreements, entailing fixed monthly payments for the batteries, adjusted by the financial settlement of CAISO's day-ahead market. The Coso Batteries 1 and 2 will be situated at Atlantica's Coso geothermal power plant, acquired by the company in 2021, representing its inaugural standalone battery energy storage projects.
Coso Batteries 1, with a capacity of 100 MWh, is currently under construction since the previous year and is expected to commence operations in 2024, according to the 2022 update. Coso Batteries 2, with an 80-MWh capacity and an estimated investment between USD 35 million (EUR 32.7m) and USD 45 million, is progressing through advanced development stages and aims for commercial operation by 2025.
The move into standalone battery energy storage projects underscores Atlantica's commitment to expanding its clean energy infrastructure portfolio, contributing to California's renewable energy landscape.