Strata Begins Massive 1GWh Energy Storage Project in Phoenix

Strata Clean Energy has officially launched the groundbreaking 1GWh Energy Storage Project in Phoenix, known as the Scatter Wash battery storage complex. With an impressive capacity of 255 MW, this facility is set to serve Arizona Public Service (APS) customers. The project, earmarked to be operational by April 2025, represents a pivotal leap forward in large-scale sustainable energy solutions.

“This groundbreaking demonstrates a considerable advancement in large-scale sustainable energy solutions in a major growing metropolitan area, underscoring Strata’s dedication to addressing critical grid challenges.” Josh Rogol, President of Strata Clean Energy said. “In showcasing our dedication to utility clients like APS and Arizona homes and businesses, we continue shaping the future of energy storage by ensuring grid reliability and driving progress towards broader decarbonization and economic development goals through local jobs and investment. It exemplifies our dedication to a more sustainable future.”

The development of the Scatter Wash facility, a 255 MW / 1.02 GWh project, follows a 20-year tolling agreement between Strata and APS, stemming from APS’s All-Source RFP conducted in 2022. Strata holds the responsibility to build, own, and operate the project, thereby expanding its portfolio of clean-energy assets.

Mortenson, chosen as the EPC partner for this project in April 2023, brings its technical expertise and track record for timely project completion to the table. The project will feature Tesla’s Megapack 2XL battery system, known for its advanced technology and efficiency in energy storage and dispatch.

The Scatter Wash project, supported by the Investment Tax Credit (ITC) under the Inflation Reduction Act of 2022, represents a crucial step in the U.S.’s transition to sustainable energy. The ITC facilitates standalone energy storage projects, potentially covering 30-70% of a project’s cost based on specific criteria, including the use of domestically manufactured components.

“Arizona is one of the fastest growing states in the country and reliable and affordable power is critical for APS customers, especially during our hottest summer days,” Jacob Tetlow, Executive VP of Operations at APS noted. “These batteries will help us continue to serve our customers with a balanced and diverse power supply.”

The Scatter Wash facility is a part of a broader movement in Arizona towards large-scale energy storage solutions. While Arizona’s current BESS deployments are relatively modest compared to states like California and Texas, multiple projects exceeding 1 GWh are underway. These projects, backed by long-term tolling agreements, offer significant revenue certainty, encouraging investment in the sector.

In addition to Scatter Wash, APS has also entered into a 20-year tolling agreement with Recurrent Energy for a 1,200MWh BESS project in Maricopa County. This trend underscores the growing commitment to sustainable energy solutions in Arizona, contributing to the nationwide effort towards a more resilient and environmentally conscious energy landscape.