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Recurrent Energy inks long-term energy storage agreement with PG&E

Recurrent Energy

Recurrent Energy, a wholly-owned subsidiary of Canadian Solar, has secured a long-term Resource Adequacy agreement with Pacific Gas & Electric; to provide 150 MW / 600 MWh of energy storage, for the phase 2 of the Crimson project beginning in the summer of 2022.

Firstly, this agreement is the second that Recurrent Energy inks with PG&E; earlier this year, the Southern California Edison awarded Recurrent Energy a long-term energy storage contract for 200 MW / 800 MWh for phase 1 of the Crimson project.

Secondly, the project is set to be one of the largest energy storage projects in the world; once online in the summer of 2022. It will have a 350 MW/14,00 MWh of capacity; indeed, one of the largest battery energy storage projects in the globe.

Thirdly, both projects awarded to Recurrent Energy are stand-alone storage projects; and are part of reliability procurements directed by the California Public Utilities Commission. However, the newly signed contract comes specifically in response to a decision by the CPUC in March; for the California utilities to “take actions to prepare for potential extreme weather in the summers of 2021 and 2022.”

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Recurrent Energy to help the state during extreme weather events

Moreover, as we have reported previously, extreme weather situations have disrupted the energy sector in the U.S. specifically in Texas earlier this year; after a freezing storm; but now also in forms of heatwaves. Last week ERCOT warned about a historic peak in cooling demand in the state.

Consequently, this additional energy storage capacity further supports Governor Newsom’s recent emergency proclamation; to expedite new clean energy projects in light of the ongoing extreme weather and climate crisis faced by the state.

About the relevance of the contract, for both the company and the state, Shawn Qu, CEO of Canadian Solar, said. “It is becoming increasingly important to be able to send energy to the grid during heatwaves; and also, other peak demand events. We are pleased to help PG&E enhance grid reliability in California; by providing critically needed resource adequacy capacity through our long-term battery storage solution.”

Finally, he also remarked. “We are accelerating all our development processes to ensure we reach the target commercial operation date of summer 2022. We thank our partners for their trust and support; and also look forward to providing more safe, reliable, affordable and also, clean battery storage solutions to the communities we serve.”

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