Vistra Energy (NYSE: VST) today announced that, subject to approval by the California Public Utilities Commission (CPUC), the company will enter into a 20-year resource adequacy contract with Pacific Gas and Electric Company (PG&E). Under the contract, Vistra will develop a 300-megawatt/1,200-megawatt hour, battery energy storage project at its Moss Landing Power Plant site in Moss Landing, California. On Friday, June 29, PG&E filed its application with the CPUC to approve the contract, with a decision expected within 90 days.
“Vistra is excited for this opportunity to work with PG&E, and the State of California, to develop a world-class battery project on our Moss Landing site, while building industry-leading expertise in the development and commercialization of battery storage assets,” said Curt Morgan, Vistra’s president and chief executive officer. “The Moss Landing battery project will be the largest of its kind in the world and will position Vistra as a market leader in utility-scale battery development. This project is consistent with Vistra’s strategy to opportunistically invest in new technologies in support of the changing energy supply landscape.”
Pending the receipt of CPUC approval, Vistra anticipates the battery storage project will enter commercial operations by the fourth quarter of 2020.
Moss Landing Battery Storage Project Highlights
- Investment underpinned by a 20-year resource adequacy contract with PG&E, an investment grade offtaker.
- Vistra retains energy and ancillary services value.
- Attractive development and construction costs with returns consistent with Vistra’s investment criteria.
- Will use the existing interconnection from the mothballed Moss Landing units 6 and 7.
- Will use an existing turbine building on the site to house the batteries.
- Vistra estimates the project will convert more than 95 percent of its adjusted EBITDA to adjusted free cash flow.