Recurrent Energy, a wholly-owned subsidiary of owner and developer of renewable energy projects, Canadian Solar, announced today it sold an 80% stake in its Crimson storage project to Axium Infrastructure.
Crimson storage project is Canadian Solar’s first stand-alone storage project and the largest developed to date. It will have a total capacity of 350 megawatts of output, paired with 1400 MWh of energy storage. Its construction will begin in the third quarter of 2021 and will reach commercial operation by the summer of 2022.
According to the company’s statement, Recurrent Energy will retain the remaining 20% ownership. Currently, the project holds two energy storage contracts with local utilities. Those are, for phase one, a 14 year and 10-month contract with Southern California Edison for 200 MW/ 800 MWh.
For phase two, a 15-year contract with Pacific Gas and Electric Company for 150 MW/600MWh. After the sale, Recurrent and Axium will operate the battery system in the wholesale California wholesale power market.
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Axium acquisition in Recurrent Energy’s project, the first on energy storage
On the other hand, Canadian Solar’s majority-owned CSI Solar subsidiary will provide both EPC (engineering, procurement, and construction) and long-term operational services for the Crimson storage project.
Shawn Qu, Chairman, and CEO of Canadian Solar said. “Through the Crimson storage project, we are collaborating with our partner Axium to help improve California’s grid reliability and safety by providing critically-needed resource adequacy capacity to meet electricity demand in all scenarios.”
He also remarked. “Once it reaches commercial operation, Crimson will be one of the largest battery energy storage projects in the world. We are pleased to work with Axium as we execute and complete the majority sale of the project.”
Finally, on his side, Thierry Vandal, President of Axium Infrastructure US Inc., said. “The Crimson partnership with Canadian Solar and Recurrent marks Axium’s first investment in battery storage. This important project will support the integration of additional sustainable energy projects to help achieve California’s ambitious energy and climate change goals.”