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Rhea-AI Summary

GridStor has acquired a 200 MW / 800 MWh battery storage project in Oklahoma from Black Mountain Energy Storage (BMES). The project, to be developed in two phases, aims to address the Southwest Power Pool's (SPP) urgent need for power resources by 2030.

The acquisition comes at a important time as the region faces increasing power demands from data centers and large industrial customers. Located in Eastern Oklahoma, the project will enhance grid resilience and ensure reliable power supply through participation in the SPP-managed electricity market.

This marks GridStor's second acquisition in the past year. The company, backed by Goldman Sachs Asset Management, focuses on developing and operating battery facilities in regions with growing energy demand and increasing grid reliability needs.

Positive

• Strategic acquisition of 200 MW / 800 MWh battery storage capacity
• Addresses urgent market need in SPP region
• Located in high-demand area with operating data centers
• Backed by Goldman Sachs Asset Management

Negative

• Project completion timeline not specified
• Development costs not disclosed
• Two-phase implementation may delay full capacity deployment

Insights

Energy Storage Analyst

GridStor's acquisition of a 200 MW/800 MWh battery storage project in Oklahoma represents a strategically timed investment addressing critical infrastructure needs in the Southwest Power Pool (SPP) region. With SPP forecasting significant resource deficits by 2030, this project offers immediate grid stabilization benefits in an area experiencing explosive data center growth.

The battery system's 4-hour duration capacity (800 MWh ÷ 200 MW) is particularly well-suited for daily peak shaving and grid reliability services, positioning GridStor to capitalize on both capacity payments and energy arbitrage opportunities in the SPP market. Eastern Oklahoma's emerging status as a data center hub creates a premium market for reliable power resources, potentially allowing for favorable offtake agreements.

This marks GridStor's second acquisition within a year, suggesting an accelerated deployment strategy backed by Goldman Sachs Asset Management's substantial financial resources. The phased implementation approach balances near-term revenue generation with flexibility to adapt to evolving market conditions.

Battery storage represents a important competitive advantage over traditional peaker plants in the region - offering faster response times, zero direct emissions, and significantly shorter deployment timelines compared to thermal alternatives. For utilities and grid operators in SPP, this project helps address the challenging mismatch between rapid demand growth from energy-intensive data centers and the lengthy development cycles of traditional generation assets.

200 MW / 800 MWh acquisition will help the region meet rising power demand from data centers and other large customers

PORTLAND, Ore.--(BUSINESS WIRE)-- GridStor, a developer and operator of utility-scale battery energy storage systems, announced today that it has acquired a battery storage project in Oklahoma, totaling 200 MW / 800 MWh to be developed in two phases, from Black Mountain Energy Storage (BMES).

GridStor’s acquisition and plan to construct battery storage in Oklahoma comes during a critical time for the region. The Southwest Power Pool (SPP) has indicated an urgent need for new power resources to go online by 2030 to support electric system reliability and meet rising demand from data centers and other large industrial customers.

“Battery storage is a scalable and near-term solution to provide reliability to the SPP system and its large customers,” said Chris Taylor, CEO of GridStor. “Batteries provide energy to stabilize the power system and meet hours of greatest demand every day in multiple regions across the U.S. This acquisition demonstrates GridStor's commitment to rapidly adding battery energy storage to the SPP grid to support the growing needs of its residents and businesses.”

GridStor’s project will be built in Eastern Oklahoma, where multiple data centers are already operating and more are in development, creating new demands on regional power infrastructure. Once operating, the project will increase the resilience of the Oklahoma electric grid, helping ensure reliable power supply daily through participation in the electricity market managed by SPP.

"As a developer of utility scale energy storage projects nationwide, BMES is pleased to support GridStor in their endeavor to support emerging grid needs with utility scale battery storage,” said Witt Duncan, CCO of Black Mountain Energy Storage. "Together with GridStor, we're building reliable, affordable, and sustainable energy solutions today for a promising tomorrow.”

The successful close of the project marks GridStor’s second acquisition over the past year.

GridStor develops and operates battery facilities directly integrated with American power infrastructure, storing electricity to deliver when it is most needed. GridStor is backed by Goldman Sachs Asset Management and comprises a team of seasoned energy professionals with a record of past accomplishments in energy storage and clean energy project acquisition, development, finance and operations. GridStor’s target markets include regions with rapidly growing energy demand and increasing need for grid reliability.

About GridStor

GridStor strengthens America’s power system reliability by building and operating battery projects, storing electricity to deliver when and where it’s most needed. GridStor develops, acquires, and operates utility-scale, standalone battery storage projects primarily across North America. Visit us at www.gridstor.com and on LinkedIn.

About Black Mountain Energy Storage

Black Mountain Energy Storage is a team of energy experts who develop and operate battery energy storage facilities. Founded in 2021, BMES was established to bring reliable, emissions-free energy storage capacity to the electric grid to enhance system reliability and enable greater reliance on renewable generation. It focuses on investing in communities and markets where energy storage will provide long-term value to stakeholders.

About Goldman Sachs Asset Management

Goldman Sachs Asset Management is the primary investing area within Goldman Sachs (NYSE: GS), delivering investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

Goldman Sachs Asset Management is a leading investor across fixed income, liquidity, equity, alternatives and multi-asset solutions. Goldman Sachs oversees approximately $3.1 trillion in assets under supervision as of September 30, 2024. Follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250115697433/en/

Media Contact

Alaina Gjertsen

Alaina.Gjertsen@gridstor.com

Source: GridStor

FAQ

What is the size and location of GridStor's new battery storage acquisition?

GridStor acquired a 200 MW / 800 MWh battery storage project in Eastern Oklahoma, to be developed in two phases.

Why is GridStor developing battery storage in Oklahoma's SPP region?

The Southwest Power Pool needs new power resources by 2030 to support system reliability and meet rising demand from data centers and industrial customers.

How will this battery storage project benefit Oklahoma's power grid?

The project will increase grid resilience and ensure reliable daily power supply through participation in SPP's electricity market.

How many acquisitions has GridStor completed recently?

This is GridStor's second acquisition over the past year.