Battery plants have established themselves in the sunny Southwest, but this week was the first time they won big in New England.
San Francisco-based developer Plus Power won two bids in the latest capacity auction held by the New England ISO, which operates the transmission grid and competitive power markets in six Northeastern states. That means that these two battery plants offered a compelling enough price to edge out some fossil fuel plants for delivering power on demand. And they did it without any help from federal tax credits because none of them apply to standalone batteries.
Plus Power now needs to build the plants: a 150-megawatt/300-megawatt-hour system near a cranberry bog south of Boston, Massachusetts and a 175-megawatt/350-megawatt-hour battery in Gorham, Maine. The seven-year capacity contracts start in June 2024.
New England has seen a build-out of smaller batteries. Some have been acquired by municipal utilities willing to get out in front of a grid trend. Others are supported by the Massachusetts SMART program, which incentivizes the addition of batteries at distributed solar projects.
But until now, no standalone battery had won in the competitive capacity auctions opened to energy storage by ISO-NE’s implementation of Federal Energy Regulatory Commission Order 841, and no batteries above the 100-megawatt threshold had been built in the region.
“There’s no mandate, there’s no emergency procurement, there’s no grant program,” Plus Power General Manager Brandon Keefe said. In that light, the company’s capacity market wins represent “the market working and storage winning.”