Canadian Solar announced on August 10 that its subsidiary Recurrent Energy has signed a 15-year Resource Adequacy Agreement with American utility PG&E to provide 150MW / 600MWh of energy storage capacity that will be located in the phase 2 of the Crimson Energy Storage Project in Riverside County, California.
The development of the Crimson Energy Storage Project is divided into two phases, with the total battery energy storage capacity set at 350MW / 1,400MWh. It is to be coupled to the nearby 350MW Crimson Solar Project. Both the PV and battery energy storage projects are to be owned by Recurrent Energy. Earlier this year, Canadian Solar entered an agreement with Southern California Edison to develop the first phase (i.e., 200MW / 800MWh) of the Crimson Energy Storage Project. It should be noted that the planning of the PV and energy storage projects started as early as 2018.
The two phases of the Crimson Energy Storage Projects are designated as two standalone energy storage contracts. The storage capacity as a whole is to be procured by the California Public Utilities Commission so as to ensure that the state will have sufficient and reliable electricity supply if it is faced with extreme weather conditions during summers. This reliability procurement program was initiated this March. Dr. Shawn Qu, chairman and CEO of Canadian Solar, said that the power grid system of California has to be prepared for heatwaves and other peak demand events. The official press release about the long-term agreement with PG&E also touts that the Crimson project is expected to the largest of its kind once it commences operation in the summer of 2022.
Canadian Solar has expanded its business operations from integrated manufacturing of PV modules to development of PV and energy storage projects. According to its earnings report for 2Q21, its energy storage projects that are under development have reached around 19GWh.
