Strata Refinances and Expands Existing Revolving Credit Facility with Zions Capital Markets to $170 Million
Strata Clean Energy contracts another 400MWh BESS in California
DURHAM, NC / RIALTO, CA: January 26, 2022 – Strata Clean Energy (“Strata”) is proud to announce its Inland Empire Energy Storage (“IEES” aka “Poblano Energy Storage”) was awarded a 15-year Resource Adequacy Agreement with Energy Settlement by Pacific Gas & Electric (“PG&E”). On January 21, 2022, PG&E filed an Advice Letter at the California Public Utilities Commission for approval of 6,396 megawatt hours (MWh) of new and incremental utility-scale battery energy storage systems (“BESS”), and Strata is honored to be a part of this historic solicitation.
“The IEES project in Rialto, CA is a 100MW stand-alone battery energy storage system contracted to produce 400MWhs of capacity by the summer of 2024,” said Josh Rogol, Chief Development Officer for Strata. “As a fully developed BESS with site control, an executed interconnection agreement and completed entitlements, IEES was well positioned to respond to the request for offers.”
This is Strata’s second contracted BESS in California. The 400MWh Ventura Energy Storage project (now owned by Arevon) came online in the summer of 2021 and is serving Southern California Edison under a twenty-year Resource Adequacy Agreement.
“Inland Empire Energy Storage is a more than one hundred-million-dollar clean energy investment in Rialto,” said Mayor Deborah Robertson of the City of Rialto. “Our community is committed to embracing cutting edge technology and sustainable infrastructure to bring forth a healthier environment and resilient electric grid.”
IEES will serve PG&E customers through an innovative Long-Term Resource Adequacy Agreement with Energy Settlement. This commercial structure provides for additional fixed revenue for the Seller, beyond the traditional resource adequacy payment, in exchange for a variable payment to the Buyer. The variable payments are based on the top and bottom day-ahead energy prices in the market. In its simplest terms, the Energy Settlement structure can be compared to that of a Fixed-For-Floating Swap and PG&E will benefit from the energy arbitrage value of the BESS.
Contracting a BESS in 2021 presented several challenges that the battery industry has not dealt with before. The unprecedented increase in commodity prices, shipping costs and labor rates in the second half of the year placed enormous pressure on the sustainability of competitive bids. As Strata has deep experience with equipment procurement and construction, we proactively worked with PG&E through this period to ensure project viability. Standing by our commitments is the cornerstone of our business and is also why so many utilities across the country utilize Strata as a trusted partner.
For fourteen years, Strata has emphasized quality over quantity, we value the fundamentals of good project development. IEES is a part of a 9GW/16GWh solar and BESS pipeline of which additional projects have been awarded and are currently under negotiation with off-takers across the country. Our platform is staffed by the best in the business and fueled for growth by Strata’s very significant balance sheet strengths and credit facilities.
About Strata Clean Energy Strata Clean Energy and its affiliates are a vertically integrated solar and storage development, engineering/procurement/construction (“EPC”), and operation/maintenance (“O&M”) company. Strata has deep utility experience with more than 170 projects in operation, nearly 9GW/16GWh in development and over 3GW in its O&M portfolio. Strata’s end-to-end services reduce risk, increase efficiency, and maximize cost-competitiveness for our partners.