Hexagon considering sale of 2GW of ERCOT storage projects

October 11, 2023

Hexagon Energy is in talks with investment bankers with a view to selling almost 2GW of standalone storage projects in the ERCOT [Electric Reliability Council of Texas] region.

In addition, the company is considering offers for its 138 MW Woodridge Solar project in Albermarle County, Virginia, but Hexagon is also “evaluating delaying the development timeline to provide more certainty around the domestic content procurement”, the company confirmed.

The standalone storage portfolio comprises 17 projects, totaling 1,800 MW, which are scheduled to begin operations in the third quarter of 2025. All of the projects except one qualify for the 10 per cent energy community ‘adder’ in the Inflation Reduction Act.

The portfolio included 16 projects of 100 MW each with two-hour duration batteries and a 200 MW storage project of two-hour duration. The portfolio includes nine projects in the Houston metro area, six in the Rio Grande Valley and two in the Dallas-Fort Worth Area.

With regard to the Woodbridge project, Hexagon is looking at a potential delay of the construction of the project by another six to 12 months to see if it can lock in the ‘adder’ from the IRA for domestic manufacturing.

Developers are expected to have more domestic supply options in 2025 as the likes of Enel North America, via its Oklahoma plant, and Hanwha Q Cells, via its planned expansion in Georgia, are both forecasting commercialisation by the end of 2024, Hexagon said.