ENGIE's Broad Reach Buy Broadens BESS Buildout in Texas

Researched by Industrial Info Resources (Sugar Land, Texas)--ENGIE S.A.'s (Paris, France) North American subsidiary agreed earlier this week to acquire energy-storage company Broad Reach Power LLC (Houston, Texas) from Apollo Global Management (APO) and EnCap Investments (Houston) for $1.6 billion. ENGIE will pick up 350 megawatts (MW) of operational, grid-scale battery assets, as well as 880 MW under construction with commissioning expected before 2025, mostly in the Electric Reliability Council of Texas (ERCOT) service area. Industrial Info is tracking more than $8.6 billion worth of active and proposed projects from Broad Reach, more than 80% of which is in Texas.

Click on the image at right for a graph detailing Broad Reach's ERCOT-based projects, by Texas county.

More than $1 billion worth of projects from Broad Reach are nearing or under construction in the ERCOT area, including three battery energy-storage systems (BESS) exceeding 200 MW in capacity. The $250 million Hydra BESS in Coyanosa began construction in December and is expected to begin carrying more than 202 MW when it is completed in the fourth quarter; the $250 million Libra BESS in Seguin began construction in March and is expected to carry a nearly identical amount when it also is completed in the fourth quarter.

Earlier this summer, Broad Reach began construction on the $250 million Paleo BESS in Abernathy, at the southern end of the Texas Panhandle, which is expected to carry about 200 MW upon completion toward the end of next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read detailed reports on the Hydra, Libra and Paleo projects.

BESS projects have been a boon to Texans amid the brutal summer heat. Earlier this month, energy-storage units discharged a record 1.8 gigawatts (GW) into Texas' power grid, as ERCOT and other state officials called on consumers to conserve energy. ERCOT says it has surpassed its record for power demand 10 times in the past three months.

ERCOT projects set to begin construction within the coming year include Broad Reach's $200 million Pavo BESS in Fort Stockton and $65 million Tortolas BESS near Alvin, which are expected to carry about 177 and 50 MW, respectively. Subscribers can read detailed reports on the Pavo and Tortolas projects.

Broad Reach was founded in 2019 with financial support from EnCap, Apollo and other private-equity partners, and it quickly become a leading U.S. developer and operator of renewable-energy and energy-storage power projects in Texas and other markets, according to EnCap. In addition to the above-mentioned projects, ENGIE's acquisition includes a 1.7-GW pipeline of battery-storage projects at an advanced stage of development and a significant pipeline of early-stage projects.

ENGIE hopes its acquisition will help it toward its goal for 10 GW of global battery-storage capacity by 2030. Completion of the transaction is expected by the fourth quarter, subject to the fulfilment of certain approvals from anti-trust and energy regulatory authorities, according to ENGIE.

"This acquisition is fully in line with ENGIE's strategy," said Catherine MacGregor, the chief executive officer of ENGIE, in a press release. "It will contribute to the development of a low-carbon, affordable and resilient energy system where flexible assets will play a critical role alongside renewables."

In January, ENGIE's North American subsidiary began construction on its $650 million Five Wells Solar Center in Rogers, Texas, about 50 miles northeast of Austin. The 355.4-MW power plant will be built alongside a 262.5-MW BESS. Completion is expected toward the end of next year. Subscribers can learn more from a detailed project report.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of detailed reports for active and proposed projects from Broad Reach.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).