Strata, APS ink 20-year tolling deal for 600 MWh Arizona battery

U.S. developer Strata Clean Energy has secured a 20-year tolling agreement with Arizona’s largest electric utility APS for its 150 MW/600 MWh Justice Energy Storage project located near Skyline Regional Park in Phoenix.

Under the new tolling agreement, APS will be able to charge and discharge the system for energy as needed. In return, Strata will ensure the system’s capacity, reliability, and efficiency through the term of the agreement.

The project is slated for completion in April 2026 and will be connected to the APS power grid.

In June 2023, APS conducted an All-Source Request for Proposal (RFP) to procure approximately 1 GW of resources, including 700 MW of renewable energy, to address the needs outlined in its Integrated Resource Plan (IRP). Justice Energy Storage was among the projects awarded contracts resulting from the RFP.

Last year, Strata entered into a similar 20-year tolling agreement for its 255 MW/1 GWh Scatter Wash battery storage complex located in Phoenix, which commenced construction earlier this year.

This award resulted from the All-Source Request for Proposals (RFP) conducted by APS in May of 2022 in which the utility sought approximately 1 GW to 1.5 GW of resources, including up to 600 MW to 800 MW of renewable resources in line with its IRP.

APS’s IRP indicates a need for additional flexible capacity resources to meet reliability requirements in the summertime, when electricity needs are highest in Arizona.

“APS is thoughtfully planning to meet Arizona’s increasing energy needs with a diverse mix of resources that will continue to serve customers with reliable, affordable, and clean power around-the-clock, especially during our summer months,” said Brian Cole, APS Vice President of Resource Management. “Projects like Justice Energy Storage will benefit customers during some of the hottest parts of the day when they need electricity most.”

Strata Clean Energy and its affiliates are a vertically integrated company specializing in solar and storage development, engineering, procurement, and construction (EPC), as well as operations and maintenance (O&M). Presently, the company has more than 170 projects in operation, more than 8 GW of solar and 31 GWh of storage in development, and 4.2 GW under management nationwide.

APS is Arizona’s longest-serving electric company, serving more than 1.3 million commercial and residential customers in 11 of Arizona’s 15 counties. The company has a commitment to 100% clean energy by 2050.