Alpha Omega Power secures funding for California’s Caballero battery storage project

Alpha Omega Power (AOP), a utility-scale renewable energy developer, has made significant strides in promoting clean energy solutions with the acquisition and financing of its first operational project, the Caballero battery energy storage system, located in Nipomo, California. The Caballero project, which boasts a capacity of 100 MW/400 megawatt-hours, is designed to serve the California Independent System Operator (CAISO) market and aims to boost energy supply in the surrounding San Luis Obispo county.

The battery system is anticipated to enhance grid reliability and provide clean energy to approximately 100,000 homes during periods of high demand. Paul Choi, CEO of Alpha Omega Power, expressed pride in the project’s inception, stating, “We’re proud to establish our footprint in CAISO with our inaugural utility-scale battery storage project to serve reliable, clean energy to California’s coastal communities.” This marks a pivotal step for AOP as it embarks on a series of utility-scale battery storage developments.

To ensure the optimal performance of the Caballero project, AOP has partnered with Gridmatic, a power marketing firm. At the helm of this collaboration is David Miller, Gridmatic’s chief commercial officer, who noted the challenges posed by California’s electricity market rules that predate the recognition of energy storage as a reliability resource. Miller commented on the potential of their collaboration, stating, “Many of California’s electricity market rules were designed before energy storage was considered as a reliability resource. As a result, it is a challenge for battery owners to achieve the financial results necessary to sustain further investment in the state’s rapidly growing fleet of batteries.”

Gridmatic brings extensive energy and software expertise to the project, focusing on utilising batteries, market insight, and artificial intelligence to mitigate the volatility of renewable energy sources and align generation more closely with demand. Miller highlighted the capabilities of Gridmatic’s forecasting and optimisation algorithms, asserting that these can enhance the advantages of battery storage while minimising financial risks. He stated, “Our industry-leading forecasting and optimisation algorithms can maximise the benefits of battery storage assets while minimising risk of loss, delivering reliability to the California grid while helping make more assets bankable for owners. We’re excited to put these capabilities to use in supporting Alpha Omega Power as it works to build California’s clean energy future.”

As part of its contracted portfolio, Gridmatic is managing an energy storage capacity of 300 MW, reflecting its commitment to advancing energy solutions. The recent energy storage report released by Gridmatic in May 2024 underscores the revenue potential associated with AI-driven optimisation for energy storage systems, indicating a promising future for such technologies in the renewable energy landscape.

The Caballero project thus not only represents a significant development in AOP’s portfolio but also highlights the evolving nature of energy storage in California’s market, showcasing how partnerships and technological innovations are key to addressing the challenges of energy reliability and sustainability.

Source: Noah Wire Services