Greenvolt wins 1.2GW of BESS contracts in Poland capacity market auction, claiming 70% of total

It awarded contracts to 159 projects totalling over 7GW of power, of which 111 are in Poland and 48 are abroad in Czech Republic, Slovakia and Sweden. The clearing price is significantly lower than the PLN 406.35/kW at which the previous auction cleared, for deliverability in 2027. There are lower clearing prices for the projects in Czech Republic and Slovakia.

The capacity market is set to kickstart the large-scale BESS market in Poland by providing the basic building blocks of the business case, according to numerous delegates interviewed by Energy-Storage.news at Energy Storage Summit Central Eastern Europe (CEE) 2023 in Warsaw in September.

Greenvolt wins 1.2GW of contracts for BESS

Renewable energy developer and independent power producer (IPP) Greenvolt won 1.2GW of 17-year contracts for six battery energy storage system (BESS) projects it bid in, the company revealed on the same day.

It claimed this equated to over 70% of total capacity awarded to BESS technology, implying the total awarded to BESS was around 1.7GW. That would be over 10 times higher than the 165MW that won contracts in last year’s auction.

A breakdown of the winning projects from the state bulletin did not spell out the technology for each but analysis by Energy-Storage.news showed that projects described as ‘new generation capacity market unit’ (nowa jednostka rynku mocy wytwórcza) – as all of Greenvolt’s are – totalled 1,735MW.

Greenvolt’s six projects’ winning obligations range from the smallest at 85MW to the largest at 510MW, totalling exactly 1,200MW.

A total of 16GW of BESS projects got preliminary registration to bid in to the December 2023 auction, though not all will actually have bid. Research firm LCP Delta recently did a deep-dive into the Poland and Eastern Europe grid-scale energy storage markets with a focus on the former and the capacity market auction for Energy-Storage.news.

Greenvolt originates in biomass in Portugal but has expanded to other renewables and is active in the energy storage markets in Portugal and the US.

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

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Comstock Metals Receives Air Quality Permit from Nevada DEP

Credit: Les Chatfield

Comstock has been notified by the Nevada Division of Environmental Protection of the issuance of the new Class II Air Quality Operating Permit for its solar panel recycling facility.

The facility is being built to include technology for crushing, conditioning, extracting and recycling metal concentrates from PV and other electronic devices. 

Comstock has received county permission and the Class II permit, with issuance of the Nevada Solid Waste Material Recovery Facility Permit expected this quarter. The latter permit will enable Comstock to complete the process equipment installation and solicit the county fire marshall and building department to provide the final facility certificate of operation.

“We represent a safe, zero-landfill, end-of-life solution for solar installers, landfills, and utility-scale solar developers and generators, serving the entire Southwestern U.S. and beyond,” says Dr. Fortunato Villamagna, Comstock Metals president. “Large volumes of end-of-life photovoltaic materials are rapidly becoming available from large solar fields, creating an environmental dilemma. Comstock Metals ensures the safe deconstruction, decontamination, separation and productive reuse of important materials and precious metals.”

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Spruce Power Launches Pro Platform Aimed at Commercial Market

Credit: Jeffrey Beall

Spruce Power has launched its Spruce Pro brand, aimed at expanding the company’s distributed energy servicing capabilities.

Built on the company’s existing portfolio of owned and third-party home solar assets, its Pro brand is hoping to capitalize on the commercial market through its software platform. The company says its technology leverages its fit-for-purpose systems to streamline operational efficiency and increase productivity for commercial customers through end-to-end portfolio servicing. 

“This expansion to work with commercial clients is a natural fit for our organization, which has championed servicing solutions for distributed solar energy assets over the past decade,” says Christian Fong, Spruce Power CEO. “Leveraging this experience, we can step into a fast-growing market of commercial solar to make available to new clients Spruce’s trusted servicing and environmental commodities teams.”

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‘Let batteries help’ says Arenko CTO after frequency event threatens Britain’s grid stability

Had it dropped any further, the results could have been serious, with blackouts and other disruptions to supply as well as potential damage to infrastructure. While it isn’t yet clear exactly what happened in the chain of events, it was precipitated by a loss of 1GW of load from the IFA Interconnector between the UK and France.

It came during a couple of days of high renewable generation, with a record-breaking 21GW of wind on the system the previous day, there was around 19GW of wind – well over 50% of the 30GW to 35GW of total generation on the Great Britain (GB – the UK would include Northern Ireland, which shares its grid with the Republic of Ireland) grid.

The interconnector trip therefore took about 3% of total power off the network in one go.

“This is a reality of the new interconnected grid that we’re operating. With traditional power stations, big loads do not tend to drop off instantaneously, whereas interconnectors do. A big generator will wind down very slowly unless there’s a catastrophic event, but the interconnectors quite often seem to trip very large loads off of the system,” Hollies told Energy-Storage.news.

“So you’ve got this situation where you’ve got high renewables and then a good really big chunk of the system got lost instantaneously.”

The UK has two arms to its electricity network operation. One is National Grid, which is the transmission system operator (TSO), physically operating and managing the grid infrastructure, while the other is National Grid Electricity System Operator (National Grid ESO), managing and coordinating supply of electricity in real-time.

In that context, it’s the ESO that offers markets for grid-balancing services like frequency response and it is currently reforming the balancing reserve products available. The rollout of its dynamic frequency services as part of this, includes Dynamic Containment, the ancillary service which Hollies said is the post-fault service, and “the thing that’s supposed to really catch these big incidents, when there’s a huge, quick frequency deviation”.

“And it looked like it worked. In the first instance, the 1GW dropped off, you saw the initial frequency response dropped to about 49.5Hz. But then something else happened we had this really deep, deep dip to 49.2Hz.”

The fact that disaster was averted and the frequency was kept within the boundary of 49.2Hz means that the safeguards in place ultimately worked. A serious blackout event did happen in 2019 after a frequency drop to 49.55Hz that happened in fewer seconds than was the case this time. It’s a good news story in that respect but Roger Hollies said it was, “really, really close, probably a lot closer than they were expecting,” in the ESO control room.

Roger Hollies posted this screenshot from the day of Arenko’s Nimbus platform to LinkedIn, joking that “the grid broke my graph!” given that the frequency dropped to a value no longer typically included in the axis. Image: Roger Hollies via LinkedIn.

‘Batteries do it cheaper, and better’

The GB grid experiences high levels of volatility in its frequency, due to the high penetration of renewables and its islanded situation.

Battery storage has been able to compete widely in its ancillary services markets since 2016, when National Grid (prior to a split into two separate entities with the ESO) launched a world-first competitive tender for 200MW of enhanced frequency response (EFR).  

Since then, the UK has raced into a leading position for battery storage deployment ahead of its continental European neighbours and an installed base of more than 4GW of large-scale battery energy storage system (BESS) assets.

Arenko’s Roger Hollies said in a post to LinkedIn prior to our conversation that due to the reduced value of frequency response markets, only about 80MW, or a third, of a portfolio of assets the company manages on its Nimbus software platform was contracted to deliver the grid services needed.

More importantly perhaps, Hollies noted that the post fault correction which was dispatched through the Balancing Mechanism – through which the ESO matches supply and demand in real-time – featured little to no instructions for batteries to step in.  

In other words, there has been enormous investment into BESS in the UK (including Northern Ireland) since 2016 and much of that has directed resources into providing frequency regulation.

While that investment enables batteries to participate in maintaining the frequency day-to-day, much less regard has been paid to what batteries can do during more critical events and in post-fault correction such as following what happened at lunchtime on 22 December.

Roger Hollies said the UK is leading on a lot of energy transition issues, and he acknowledged that the ESO has a difficult job to do and is taking steps in the right direction, such as the recent launch of the Open Balancing Platform for dispatching the Balancing Mechanism and other services.

Indeed, National Grid ESO is doing “really good work”, according to the Arenko CTO, faced with the intertwined duties of keeping the electricity grid online and reforming the grid’s balancing services simultaneously.

However the ESO needs to communicate their problems to the industry, and the industry to apply its “incredible minds, incredible resources” to figuring out the wider role or roles that BESS can play in keeping the lights on.

‘Gas’ contribution to reserve will erode this year’

Batteries are gradually coming in and replacing the grid’s traditional support systems, and Hollies points to various studies that show they can do so considerably more cheaply than those legacy technologies. That’s already been seen with frequency response: eight years ago, there were no batteries providing frequency services to the GB grid, now they dominate. The groundwork now needs to be done for that to extend into reserve and other services, Hollies argued.

“There’s a really positive message of batteries coming in replacing traditional generation fossil fuel generation,” he said, noting that he and Arenko recently attended COP28, where his main conclusion was that “fossil fuel companies are not going to move quickly enough [on climate], because they just won’t”.

“It’s their business. So what we have to do as an alternative industry is to replace and provide the services that they provide, better and cheaper. We’re seeing that with frequency response, that’s been done, batteries now dominate the market.

“Reserve is a huge volume of market and I think we’re going to slowly see this year particularly, batteries are just going to erode gas’ contribution to reserve massively and that’ll hopefully trigger another another investment push into batteries in the UK.”

An open transparency forum is being held on the interconnector trip and subsequent frequency event today (Wednesday 10 January), which Hollies said hopefully would shed some light and give the industry food for thought in how it could put its ideas forward.

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

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European developer/IPPs: Sodium batteries gaining ground but big LFP upgrades expected

But Aquila and Kyon Energy both said that upgrades to lithium iron phosphate (LFP) lithium-ion battery (LIB) cells are expected too, while BayWa said sodium-sulphur‘s share in the market could increase, while not getting to the scale of lithium-ion or sodium-ion.

Their answers coincide with a press release from Dongguk University in South Korea following research from a group of scientists into the recent advances in sodium-ion battery (SIB) technology.

Research leader Professor Kyung-Wan Nam said: “While the cost of SIBs might be (only) slightly lower and comparable to LIBs, the availability of sodium and the use of less toxic materials makes them a great alternative. In the long term, SIB can complement LIB technology, rather than being a competitor,” says Prof. Nam.

It also comes after European lithium-ion gigafactory firm Northvolt claimed a ‘breakthrough’ in the sodium-ion battery technology development it is doing with Altris in November 2023.

See the technology predictions from the developers in response to Energy-Storage.news’ question below.

Energy-Storage.news: What are some major trends in energy storage technologies that readers should keep an eye out for? 

Kilian Leykam, director energy storage, Aquila Clean Energy EMEA

We are expectant about the upcoming technological enhancements for lithium-ion when it comes to degradation, efficiency, cost, and longer duration systems. We are also seeing new players entering the utility-scale market with a different technological perspective. So, there is more to come with regards to lithium-ion, and particularly LFP. In terms of other technologies, we expect that sodium-ion will continue to be rolled out by major market players, but the technology still needs to be proven in the field. 

Julian Gerstner, head of storage, BayWa r.e.

Storage technologies are always evolving, so you should keep an eye out for the development of sodium-ion batteries, which can be one of the few technologies able to achieve a market share comparable to lithium batteries, in the short term. They’re still largely in the research and development stage, but I expect to see them become a popular choice for battery storage systems in the near future.

There is an additional technology with sodium-sulphur batteries available. A high-temperature battery, which has been commercially available for over ten years and with a proven operational track record. I believe this technology could be a hidden champion. Not reaching the volume like Li-ion or sodium-ion (Na-ion), but I believe market share will increase.

Recycling will also be a big trend, especially in Europe where regulations require the circulator of the battery, or the OEM, to take back batteries and recycle them accordingly. Further, nearly all major battery cell manufacturers are working on recycling factories, or are partnering with the recycling industry, because everyone wants to have their raw materials back. We’ll certainly see a circular economy for storage developed in the coming years, eliminating recycling issues for batteries in the future.

Florian Antwerpen, managing director, Kyon Energy

In the dynamic landscape of energy storage technologies, several key trends are poised to shape the industry’s future. From the Kyon perspective, these are some noteworthy developments: 

Higher Energy Density with New LFP Battery Cells: It is expected that the energy density of new LFP (lithium iron phosphate) battery cells will increase in the future. This progress will lead to increased performance and capacity of the storage systems, all achieved within the confines of the same footprint. The potential for improved efficiency and performance makes LFP a focal point for innovation and progress in energy storage.

Sodium-Ion Batteries as Complementary Technology: The spotlight is also shifting toward sodium-ion batteries, as they are slowly becoming more marketable. As the technology of sodium-ion batteries matures, their integration into the energy storage landscape could offer a compelling supplement to existing technologies such as LFP. 

Rise of Multi-Hour Storage: The relevance and viability of multi-hour storage (3, 4, 5 hours) may witness a notable increase with complementary technologies. This synergy has the potential to enhance the dependability and economic feasibility of extended-duration energy storage solutions. 

Price Dynamics of Lithium-Ion Batteries: The trajectory of lithium-ion battery prices is a crucial factor to monitor. As advancements continue and economies of scale come into play, there is a compelling question of whether the cost of lithium-ion batteries will continue to decline. A decreasing price point could render multi-hour storage with lithium-ion batteries increasingly attractive, opening new possibilities and applications. 

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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UK unveils LDES support plan: cap-and-floor, 6-hour-plus duration, and lithium-ion excluded

LCP Delta and Regen provided the analysis for the Department for Energy Security and Net Zero’s (DESNZ) ‘Long duration electricity storage consultation’, which was was published yesterday (9 January) and is open for comment until 5 March, 2024.

A separate, longer report was produced by the research firms looking in detail at different deployment scenarios and their impact on the energy system: ‘Scenario Deployment Analysis for Long-Duration Electricity Storage’.

Cap-and-floor mechanism proposed

DESNZ is proposing a cap-and-floor mechanism for LDES technologies to overcome the barriers to LDES deployment which exist today, the main one being a lack of available revenue streams for LDES applications that can cover the high investment needed. An existing scheme called Contracts for Difference [CfD] has been largely successful in supporting the deployment of offshore wind and solar since its introduction in in October 2014.

Many LDES technologies are new and untried at scale, and no new large-scale LDES projects have been built in 40 years, even for tried and tested technologies like pumped hydro energy storage (PHES).

This would provided revenue certainty for investors by guaranteeing revenues above an agreed floor and offer protection to consumers by limiting revenues to an agreed cap.

The design and implementation is being carried out in conjunction with a separate wider reform of the UK’s energy markets, the Review of Electricity Market Arrangements (REMA), covered in depth by our sister cite Current.

Long-duration energy storage defined as 6-hour duration or more, but lithium-ion excluded

DESNZ is proposing two Streams through which projects can apply for the scheme. Stream 1 would cover established technologies with a Technology Readiness Level (TRL) of 9 for projects at least 100MW/600MWh. Stream 2 would cover novel technologies with a TRL of 8, with a minimum size of 50MW/300MWh.

However, in a separate release LCP Delta said that as renewable energy grows, primarily wind, increasingly long and intense shortfalls and excess periods of generation would require technologies that can “…flex their demand and supply over extended periods, often in excess of 12 hours…”.

DESNZ said that it considered it appropriate to exclude technologies that can already be funded under existing market arrangements, including lithium-ion which is the technology of choice for the vast majority of battery energy storage system (BESS) projects being deployed, with more than 3.5GW online already in the UK.

It also suggested that projects should not be eligible for the new LDES scheme alongside other government support schemes, which it said would primarily affect hydrogen. However, the government is already funding more novel LDES technologies through a separate funding programme with £69 million in grants provided to projects in late 2022 and early 2023, and it’s not clear if that would mean those technologies are excluded too.

The six-hour duration has been suggested after the vast majority of industry respondents said 4-hours was too low as a starting point, but beyond that there was no agreed stakeholder view for the most appropriate duration. Lithium-ion has been chosen for several projects of 6-hour and 8-hour duration in the US and in Australia.

DESNZ’s consultation outlined highlighted PHES, compressed-air energy storage (CAES), liquid air energy storage and flow batteries as notable LDES technologies and assessed their duration and round-trip efficiency (RTE), while LCP Delta and Regen’s longer analysis included lithium-ion, gravity energy storage, zinc batteries, sodium sulphur batteries and iron-air batteries.

Industry reaction

The industry’s public reaction to the consultation proposals so far has been mostly positive, but still mixed.

Drax, which operates PHES projects and is hoping to build new capacity including extending an existing facility in Cruachan, Scotland, welcomed the proposals with Scottish assets director Ian Kinnaird saying: “This is a big step towards making a new generation of pumped storage hydro plants a reality. These new plants would enhance UK national energy security and play a significant role in the fight against climate change.”

Frank Gordon, Director of Policy at trade body REA (Association for Renewable Energy and Clean Technology) said: “REA welcomes the publication of proposals to reward the considerable system benefits from longer duration energy storage systems with a new support mechanism.”

But some have criticised the exclusion of lithium-ion. Ed Porter, director of revenue at market analytics platform Modo, said: “Lithium is being excluded on account of it being commercially feasible at shorter durations. It’s not acknowledged that it wouldn’t be at 6 hours (currently) & there would be a massive missing money impact of subsidising 20GW of other storage tech.”

Porter was formerly head of business development at vanadium redox flow battery (VRFB) company Invinity Energy Systems. VRFBs are one of the more mature LDES technologies currently being deployed.

Read DESNZ’s consultation outline in full here and LCP Delta and Regen’s longer deployment analysis here.

Energy-Storage.news’ publisher Solar Media will host the 9th annual Energy Storage Summit EU in London, 20-21 February 2024. This year it is moving to a larger venue, bringing together Europe’s leading investors, policymakers, developers, utilities, energy buyers and service providers all in one place. Visit the official site for more info.

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‘Highly attractive’ revenues forecast in Australia’s new Very Fast ancillary services opportunity

Dispatch of the VF FCAS opportunity opened on 9 October 2023 with two new markets for contingency FCAS, Raise-1 (R1) and Lower-1 (L1), implemented by the Australian Energy Market Operator (AEMO). The ‘1’ refers to the number of seconds response time required, with existing Fast Frequency Response services requiring response within 6 seconds.

It began with limited volumes of up to 50MW to ensure a smoother introduction, with AEMO reviewing the levels of registered capacity against expected requirements every two weeks. With the transition period currently ongoing, the maximum volume requirement for R1 is 175MW and 100MW L1 at the moment.

Contingency FCAS markets, of which there are eight in the NEM, ensure there is enough frequency response available in the system to deal with a single credible contingency that could be caused by something like a large generating unit or industrial load suddenly going offline.

Traditionally provided in Australia by fossil fuel generators, battery storage is now considered the low emissions technology best suited for providing those contingency services and due to the millisecond response times of batteries, to do it more efficiently. Coal, historically Australia’s main source of electricity generation, is being retired by 2038.

“The potential for substantial profits, combined with the vital role batteries play in ensuring grid stability, means they are poised to be a driving force in this revolutionary energy landscape,” Cornwall Insight Australia modelling manager Ben Tudman said.

“With coal slowly fading out of the picture, VF FCAS markets will hopefully offer the contingency needed to maintain the stabilisation of the grid.”

Cornwall Insight Australia said that according to its price forecasting (see below), between now and 2026, participants in R-1 could make AU$9.64 (US$6.45)/MW/hr on average and L-1 participants AU$10.95/MW/hr.

Quarterly average price forecast and average daily P1 to P90 price spreads for Raise-1 (left) and Lower-1 (right) VF FCAS markets. Credit: Cornwall Insight Australia.

That’s about ten times more than other markets available today, in which Cornwall Insight Australia is seeing revenues of under a dollar per megawatt. While that initial high value of VF services will calm, it will nonetheless remain high, averaging a predicted AU$5.5/MW/hr over a 20-year forecasted period.

While energy arbitrage is becoming an increasing portion of the revenue stack available to large-scale battery storage in Australia, FCAS is thought to still represent the biggest share, and if Cornwall Insight Australia’s analysis is correct, VF FCAS will be the most lucrative among those.

The consultancy said it expected to see more than a gigawatt of batteries available for the VF FCAS market by 2026, including existing and new-build facilities, with the surge in involvement driven by those attractive revenues.    

“We are optimistic that the higher prices available will see appetite grow for involvement in the markets, enticing both new players and existing battery assets to actively participate and contribute to these evolving energy markets,” Ben Tudman said.

Energy-Storage.news’ publisher Solar Media will host the 1st Energy Storage Summit Australia, on 21-22 May 2024 in Sydney, NSW. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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Goal Solutions to Offer Solar PPA and Lease Servicing Programs

Credit: U.S. Department of Agriculture

Goal Solutions has expanded into solar PPA and lease servicing in an effort to streamline management complexities for their client base, says the company. 

The company adds these capabilities to its established UCC management and sales tax obligation filing services. 

“We are huge believers in the transformational potential of solar-generated power and want to enable lenders to offer whatever products best fit the needs of their customers and still get best-in-class servicing through our Launch Servicing subsidiary, a proven leader in the servicing industry,” says Matt Myers, Goal Solutions president and CEO. 

“By developing our lease and PPA capabilities in tight partnership with clients we made sure that our servicing reflects the most modernized features that our lender partners and their customers have come to expect.”

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New York Power Authority issues RFI for renewables and battery storage

The RFI is seeking information for joint development opportunities which will help the utility and the wider state progress towards state-wide decarbonisation and clean energy deployment targets. New York State is targeting 6,000MW of new energy storage by 2030 alongside 10,000MW of solar capacity to hit 70% renewable energy by that year.

Responses need to be submitted by 7 February, 2024.

NYPA President and CEO Justin E. Driscoll commented: “The Power Authority is building on momentum from the completed renewable energy conferral process to now engage with renewable developers directly to identify opportunities in the energy marketplace.

“NYPA’s unique position as an innovative public utility allows us to bring our resources and experience to bear to build projects in timely, economical ways. The results of this RFI will inform the Power Authority’s next steps, advancing a cohesive and efficient transition to a clean energy economy for New York State that will benefit all New Yorkers.”

NYPA serves around a quarter of the state of New York’s electric load while also operating part of its transmission system.

Recent grid-scale projects in the state covered by Energy-Storage.news include an investment tax credit (ITC) sale by Key Capture Energy (KCE) for a portfolio including a 20MW project in New York, and 110MW/440MWh and 23.7MWh (a non-wires alternative) projects being given the regulatory green light.

Today Energy-Storage.news published a Premium article looking at New York City’s first vehicle-to-grid (V2G) pilot entering its second phase of development.

Energy-Storage.news’ publisher Solar Media will host the 5th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

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Nautilus Acquires 75.6 MW in Illinois Community Solar 

Credit: Dave Lauretti

Nautilus Solar Energy has acquired a 75.6 MW portfolio of 16 community solar projects located throughout Illinois that are projected to be operational by 2027.  

“This acquisition marks a significant commitment to the Illinois market and is a pivotal step towards expanding Nautilus’s overall footprint in the Midwest. The scale of this acquisition underlines Nautilus’s capabilities and reaffirms our position as a leading community solar company with projects and subscribers located across the country,” said Jeff Lee, Business Development Director at Nautilus. 

Nautilus is the long-term owner of the projects and is responsible for overseeing construction and maintaining its long-term performance, along with acquiring and managing customer subscriptions. Combined, the projects will generate clean energy to serve the energy needs of around 10,000 homes and commercial businesses, says the company. 

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