("Recurrent"), a wholly-owned subsidiary of Recurrent Energy, LLC ("Recurrent"), announced the acquisition of two independent energy storage projects from Black Mountain Energy Storage ("BMES") in the Southern Load Zone of the Electric Reliability Council of Texas ("ERCOT") electric market in Texas. ("BMES") from Black Mountain Energy Storage ("BMES") to acquire two independent energy storage projects in the Electric Reliability Council of Texas ("ERCOT") electric market southern load area in Texas. Both projects have a maximum installed capacity of 200 MWh and are expected to receive NTPs in 2023 and be in commercial operation in the second quarter of 2024.
Recurrent has a total of 2.9 GWh of energy storage projects under construction or connected to the grid, in addition to 15.5 GWh of energy storage projects in the early to mid-stage development. Recurrent will continue to develop both projects, including project design, permitting, equipment procurement, project financing, and construction.
The ERCOT power market is one of the fastest-growing markets for energy storage in the world, and the market demand for energy storage is high," said Dr. Qu Xiaowar, Chairman and CEO of AT&S Solar Power Group. We are pleased to accelerate the development of our energy storage project footprint in the ERCOT power market by acquiring these two projects totaling 400 MWh. We will continue to move forward with the development of these two projects, obtain project financing, and complete construction. At the same time, help improve the reliability of the Texas grid."
According to the U.S. Energy Storage Report published by Wood Mackenzie, more than 3.5 GW of utility-scale energy storage will be installed in the U.S. in 2021, nearly tripling from 2020, with the most significant installations in California and Texas. The southern load area of the ERCOT power market is an excellent area for energy storage development because of the region's abundant coastal wind and light resources. Energy storage projects can store electricity used during peak electricity consumption and improve grid stability.
We are pleased to have reached this deal with Recurrent," said Witt Duncan, director of development at BMES. These energy storage projects are precious and also improve the stability of the ERCOT transmission system. We find that there are challenging areas of the transmission system that can often present great opportunities, and we capture those opportunities, which is the primary focus of BMES. In addition to these two projects, we currently have 3 GW of energy storage projects. We are pleased that Recurrent can move forward with these two energy storage projects. Thank you also to LevelTen Energy for facilitating this transaction."
