Tolling agreement for 600 MWh New Mexico project, financial close for 400 MWh California battery

Plus Power, the Houston-headquartered standalone BESS developer, owner, and operator, has announced that its 150 MW/600 MWh Corazon Energy Storage project was awarded a 20-year contract by Public Service Company of New Mexico (PNM), subject to regulatory approvals.

The project was procured via the utility’s 2026-2028 Generation Resources Request for Proposals, which was issued in 2022 in a bid to meet growing energy demand in New Mexico as it transitions to zero-carbon energy by 2045. PNM filed with the New Mexico Public Regulation Commission for approval of the project on Nov. 22, 2024.

If approved, Corazon Energy Storage, located in Albuquerque, will begin construction in 2026, with an anticipated commercial operation date in late 2027. Plus Power and PNM signed a tolling agreement, by which Plus Power retains ownership of the facility while PNM can charge and dispatch energy according to its needs.

Corazon Energy Storage will help integrate New Mexico wind and solar energy and will provide much-needed capacity to support PNM’s customer load requirements.

PNM, the largest utility in New Mexico, has identified battery energy storage as a key component in its plan to make its electric generation 100% carbon-free by 2040, five years ahead of the state’s goal. Corazon will interconnect to the grid at Pajarito Substation, which is located centrally to PNM’s system, to store and dispatch energy from renewable resources.

With Corazon Energy Storage, Plus Power is expanding its presence in the Southwest and entering its sixth state market. The company’s portfolio currently includes 10 GW of projects in 28 states and Canada. It owns seven operating facilities located in Arizona, Texas, and Hawaii, and two facilities under construction in Maine and Massachusetts, totaling 1,650 MW/4,150 MWh.

In a separate announcement, Fengate Asset Management and Alpha Omega Power (AOP) said they’ve secured financing for the 100 MW/400 MWh Caballero Energy Storage project in California.

Alternative investment manager Fengate said on Monday that the tax equity commitment was made with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank. Fengate is managing this investment on behalf of the Fengate Infrastructure Fund IV and its affiliated entities, including an investment by the LiUNA Pension Fund of Central and Eastern Canada.

The Caballero BESS is currently under construction in San Louis Obispo County and is expected to achieve commercial operations in early 2025.

The project marks the first investment by Fengate and AOP, which formed a development partnership in 2023 to develop, acquire, and operate BESS projects. The partnership acquired the Caballero project from Origis Energy and closed construction and term debt with MUFG Bank.