Private asset management firm Capital Dynamics announced today that it has signed an agreement through its Clean Energy Infrastructure business with energy company Tenaska to develop a portfolio of nine battery energy storage system (BESS) projects located throughout California’s highest electrical load centers.

The BESS projects targeted under the new agreement will be designed to deliver local preferred and non-greenhouse gas (GHG) power resources to manage high-demand conditions caused by California heat waves, power supply shortages, as well as growing local power supply deficiencies in the Bay Area, Los Angeles and San Diego areas, that cannot be reliably served solely by intermittent renewables. The facilities are intended store energy from clean, renewable sources, such as solar and wind, for redeployment back into the grid during peak energy usage periods. The projects aim to provide approximately 2,000 megawatts (MW) of clean energy into the California Independent System Operator (CAISO) market.

Benoit Allehaut, Managing Director in Capital Dynamics Clean Energy Infrastructure team, said:

“With its focus on achieving robust clean energy goals, California is poised for continued significant growth in energy storage demand. We are excited to join with Tenaska to build high-quality battery energy storage facilities to help integrate renewables and reinforce CAISO grid reliability and resilience. We hope to quickly contract resource adequacy with utilities and CCAs to grow this portfolio.”

Today’s announcement marks an expansion of the existing relationship between Capital Dynamics and Tenaska. The companies jointly own two solar facilities in the Imperial Valley of California, and have agreements to collaborate on 24 solar projects totaling approximately 4,800 megawatts (MW) of renewable generation in the Midcontinent Independent System Operator (MISO) market and Southeast Reliability Council (SERC). Capital Dynamics is also involved in other renewable energy and storage projects, including a large scale solar and battery storage project that broke ground last month in Nevada.

Tim Hemig, Senior Vice President in Tenaska’s Strategic Development & Acquisition Group, said:

“Tenaska’s expertise lies in leveraging changing energy needs into infrastructure solutions. We are excited to pair our development skills with Capital Dynamics’ international capital origination and structuring capabilities to bring these reliable and sustainable battery energy storage projects to fruition.”