Hanwha Q CELLS Completes ESS Project Sale in US... Largest Amount Ever

CEO Lee Gu-young: "ESS, an Essential Core Future Business for Energy Transition"

A panoramic view of the Cunningham Energy Storage System (ESS) complex being constructed by Hanwha Q CELLS. Photo by Hanwha Q CELLS

[Asia Economy Reporter Choi Seoyoon] Hanwha Solutions Q CELLS Division (hereinafter Hanwha Q CELLS) announced on the 14th that it has signed a contract to sell a total of seven energy storage system (ESS) projects for power plants that it was developing in Texas, USA. This is the largest deal by transaction amount among the energy project sales contracts signed by Hanwha Q CELLS.

The projects being sold include the Cunningham ESS project with a capacity of 380MWh, which Hanwha Q CELLS has directly developed and is in the final stages of construction, as well as six other ESS projects currently under development. The total capacity of these ESS projects is 2.4GWh (gigawatt-hours), which can store enough electricity to supply about one million people in Korea for one day. Hanwha Q CELLS stated, "This contract demonstrates our comprehensive business competitiveness that goes beyond supplying energy equipment to include ESS project development, financing, and EPC (engineering, procurement, and construction)."

The acquirer, Acciona, a Spanish renewable energy developer and independent power producer (IPP), plans to operate the ESS complexes directly once the remaining development and construction work is completed. The completion dates for each complex vary from the first quarter of next year through 2025, and Hanwha Q CELLS is also positively discussing EPC contracts for the six projects under development.

Each complex will be connected to the power grid operated by the Electric Reliability Council of Texas (ERCOT) and will be operated in coordination with power generation resources and demand centers within Texas. The operator purchases electricity when prices are low, stores it in the ESS, and sells the stored electricity when prices are high to earn profits and contribute to grid stabilization.

ESS is an essential facility for the stable operation of the future energy market, where flexible power sources such as renewable energy increase and electricity usage diversifies. ESS not only reduces the burden on the power grid caused by differences between electricity production and consumption but also serves as an emergency power source during crises such as blackouts. The share of renewable energy generation in Texas is expected to increase from 30% in 2020 to 80% by 2040, and accordingly, more ESS facilities are expected to be introduced.

The responsible parties and progress of the ESS project by stage. Table provided by Hanwha Q CELLS

Driven by changes in energy policies and market structures, the global ESS market size is expected to continue growing. According to global research firm Wood Mackenzie, the world’s cumulative ESS installations will increase from 28GWh last year to 1TWh by 2031, with cumulative ESS installations in the United States alone reaching 600GWh by 2031. Policy initiatives to expand ESS are also increasing in major countries. In California, USA, power providers are required to install ESS, and states such as New York, Massachusetts, New Jersey, and Virginia are promoting ESS adoption in line with state government targets.

Lee Gu-young, CEO of Hanwha Q CELLS, said, “ESS is a core future energy business essential for a stable energy transition. Hanwha Q CELLS will continue to strengthen its capabilities as a global leader in the renewable energy sector and actively contribute to successful energy transitions worldwide.”

Meanwhile, Hanwha Q CELLS is making its mark not only in the large-scale ESS market for power plants but also in the residential ESS market. Hanwha Q CELLS has launched ‘Q.HOME CORE,’ a residential energy solution combining inverters and ESS, and supplies it to Europe, the United States, Australia, and other regions where the residential solar market is active, helping to promote efficient energy use.

This content was produced with the assistance of AI translation services.