Equinor’s Renewable Energy Footprint Expands Texas

Equinor announced approval of its first two battery storage projects in the US, following the notable acquisition of East Point Energy in the summer of 2022.

Once fully operational, these newly approved projects will have a combined total capacity of 110 MW, acting as a sturdy cornerstone of energy security for the Texas grid. Construction has already commenced on one Sunset Ridge Energy Center project in Frio County, Texas. Simultaneously, plans for the Citrus Flatts project in Cameron County are being prepared for implementation.

Sunset Ridge is the first-ever battery storage project for East Point Energy in Texas. Once operational, it will connect to the South Texas Electric Co-operative (STEC) distribution network, serving as a 10 MW/20 MWh battery storage project. This initiative will considerably enhance reliability and enable STEC to service its clientele better during peak demand times, with the commercial operation date set tentatively for 2H24.

Citrus Flatts is a 100 MW/200 MWh battery storage project set to connect to the American Electric Power distribution network. This project is expected to hit commercial operations in early 2026.

Upon completion, both Citrus Flatts and Sunset Ridge will be commercialized by Equinor’s energy trading house, Danske Commodities. Operating on a complete merchant basis in Texas’ ERCOT power market, both projects are designed for maximum efficiency – expected to deliver actual base project returns nudging the upper limit of Equinor’s guided range for renewables of 4 – 8%.

Andrew Foukal, CEO of East Point Energy, shared, “Energy storage is essential to balance the supply with the increasing demand for energy in Texas. We’re excited that our projects will support a more renewable, resilient, and affordable grid for the Cameron and Frio communities and the current ERCOT market.”

Headquartered in Charlottesville, Virginia, East Point Energy focuses on the origination, development, construction, and operation of energy storage projects as a wholly-owned subsidiary of Equinor. East Point Energy boasts a pipeline of approximately 3 GW battery storage projects stretching across the US.

“By leveraging the capabilities of East Point Energy and maximizing synergies with Danske Commodities, we aim to construct a robust and diversified battery storage portfolio with tremendous scaling opportunities,” commented Christian Lie Hansen, Equinor’s Vice President of Onshore Renewables Americas and Chair of the East Point Energy board. He added, “Our ownership in East Point Energy provides a solid foundation for building a considerable and profitable battery storage position across the US’s lucrative power markets, delivering on our market-driven power producer strategy.”