Strata Clean Energy signs tolling agreement for 600MWh BESS with Arizona Public Service

Close-up of Saticoy, a 100MW/400MWh BESS project in California which Strata Clean Energy developed before selling it on to Arevon. Image: Anthony Fulgieri / Strata Clean Energy

(Disclosure: Rose Law Group represents Strata Clean Energy.)

By Andy Colthorpe | Energy Storage News

US solar PV and energy storage project developer Strata Clean Energy has signed a long-term tolling agreement for a 150MW/600MWh battery storage project in Arizona, US.

The company announced yesterday (15 July) that it has sealed the 20-year deal with utility company Arizona Public Service (APS) for its Justice Energy Storage battery energy storage system (BESS) project.

Located in state capital Phoenix, the 4-hour duration BESS asset is planned to go into commercial operation in April 2026 and connect to the utility’s grid. APS serves around 1.4 million customers in 11 out of Arizona’s 15 counties.

The tolling agreement means that APS will have the right to charge and dispatch energy stored in the battery storage facility, while Strata Clean Energy will retain ownership of the asset and be responsible for upholding capacity, reliability and efficiency.

The project was among around a gigawatt of energy resources procured by APS through an all-source request for proposal (RFP) held in June 2023, aligned with the utility’s long-term Integrated Resource Plan (IRP).

That procurement included 700MW of renewable energy resources and will help APS reach its goal of 65% clean energy, including nuclear, and 45% renewables by 2030. Battery storage assets will be especially vital during Arizona’s hot summer months, enabling APS to meet peak demand.

“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. Projects like Justice Energy Storage will benefit customers during some of the hottest parts of the day when they need electricity most,” APS vice president of resource management Brian Cole said.

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