STOCKHOLM, Jan 7 (Reuters) – Eolus has announced that it has signed an agreement to sell its 100MW battery energy storage system (BESS) project in Poway, California. The stand-alone Pome BESS project, with a total capacity of 400MWh, is currently under construction and is expected to commence commercial operations in the first half of 2025.
The buyer is a privately held renewable energy producer based in the United States. The total enterprise value for the project is estimated to range between $230 million and $235.5 million. Eolus has been developing the project since 2019, with construction beginning in late 2023 after a positive investment decision was made.
The Pome project is a key part of California's renewable energy infrastructure and is backed by a 10-year tolling agreement with a Californian load-serving entity. This agreement enables the end-user to store, manage, and dispatch the stored electricity to its customers, providing reliable energy storage solutions for the grid.
Eolus' focus on energy storage reflects the growing demand for flexible energy systems in the U.S., where the integration of renewable energy sources is crucial to maintaining grid stability. The Pome BESS project is designed to support the state's ambitious goals for renewable energy and help reduce reliance on fossil fuels.
The transaction is expected to close in the first quarter of 2025. Once operational, the project will contribute significantly to the local grid, offering essential backup power and enhancing the stability of California's energy supply. This sale also marks another successful step in Eolus' strategy to expand its presence in the U.S. market.
Per Witalisson, CEO of Eolus, commented on the deal, saying, “I am excited that Eolus has successfully executed another transaction in the U.S. Through competent project development, we have created significant value and achieved a good margin on this project. There is a strong market for energy storage and renewable energy projects in the U.S., and our investments made in the region since 2015 are paying off.”
This transaction follows Eolus' broader strategy of developing and monetizing large-scale renewable energy projects in key global markets. The company has been investing in the U.S. since 2015, and the sale of the Pome BESS project underscores the strength of its project development and the growing interest in energy storage solutions across the renewable energy sector.
The successful development and sale of this project highlight Eolus' ongoing commitment to contributing to the global energy transition. The company's continued focus on energy storage projects is expected to play a significant role in supporting the decarbonization of energy systems in the U.S. and other markets.
