Hanwha Q Cells sells ESS projects in Texas to Spain's Acciona

The Cunningham energy storage system facility in Hunt County, Texas [HANWHA Q CELLS]

Hanwha Q Cells, Hanwha Solutions’ solar panel division, sealed a deal to sell its energy storage system (ESS) projects in Texas to Spain’s Acciona, a renewable energy developer and independent power producer.

The combined storage capacity of the seven ESS projects comes in at 2.4 gigawatt-hours, which is equivalent to the amount of electricity that 1 million Koreans consume in a day.

It is Hanwha Q Cells’ biggest sales deal for energy projects, though it did not specify the monetary amount of the contract.

The seven ESS complexes include the ongoing 380-megawatt-hour Cunningham project in Hunt County and six others that are currently under development.

Located 55 miles from Dallas, the Cunningham facility is scheduled for commissioning in the first quarter of 2023, and will be the largest standalone storage system on the Texas grid.

For the other six projects, Hanwha Q Cells is currently discussing signing an engineering, procurement and construction deal with Acciona.

When complete, Acciona will run the ESS facilities, which will be connected to the grid operated by the Electric Reliability Council of Texas.

An ESS improves grid stability by storing excess energy and releasing it when demand rises, and therefore is considered crucial in increasing energy efficiency for renewable energy plants. The renewable share in Texas’ energy mix is expected to reach 80 percent by 2040, from 30 percent in 2020, boosting ESS demand.

The accumulated installment of ESS worldwide is forecasted to reach 1,000 gigawatt-hours by 2031 from last year’s 28 gigawatt-hours, according to Wood Mackenzie, with the United States accounting for 600 gigawatt-hours.

California mandated that power suppliers install ESSs, and other states such as New York, Massachusetts and New Jersey are also pushing for ESS adoption.

“ESS, which is crucial in ensuring stable energy transition, is the core future business,” said Hanwha Q Cells CEO Lee Koo-yung. “We will improve our capacity as one of the world’s leading companies in the renewable sector, while actively committing to the global energy transition.”

Following the announcement, Hanwha Solutions’ share price soared 6.79 percent to close at 49,550 won on the Kospi bourse Wednesday.

BY SHIN HA-NEE [shin.hanee@jooangang.co.kr]