Energy storage firm GoodPeak has officially secured construction debt financing for two new battery energy storage system (BESS) projects in Texas, marking a significant step forward for its growing U.S. platform.

The projects, each with a 10MW/20MWh configuration and a two-hour duration, will be constructed near Houston and are expected to be operational by the end of 2025, the company announced. The construction credit facilities were provided through financing partners Pathward, NA and BridgePeak Energy Capital.

Though publicly described as 10MW projects, industry insiders suggest the actual capacity is likely 9.9MW each—a strategic move within the Electric Reliability Council of Texas (ERCOT) market.

“You can skip a part of the interconnection process with ERCOT (with projects under 10MW) so your time to market is quicker, which is fantastic,” explained Alex Krass, VP of business development at Available Power, during the Energy Storage Summit USA in 2023.

This interconnection efficiency has led to a trend in Texas toward distributed storage projects under 10MW, allowing developers to bring energy storage capacity online faster and with fewer regulatory hurdles. These smaller installations are also easier to site and integrate into the grid, particularly at the distribution level.

Distributed Strategy Gains Momentum in ERCOT

GoodPeak’s BESS facilities join a growing wave of sub-10MW projects across Texas. In January 2024, On.Energy announced financing for a portfolio of BESS projects across the state—each designed with a 9.9MW/20MWh setup. Similarly, Plus Power’s Farmersville West BESS 1 and Mainland BESS both conform to the 9.9MW format.

Meanwhile, SUSI Partners and SMT Energy have added 10 more BESS projects in ERCOT, each likely following the same distributed, sub-10MW model.

GoodPeak is leaning into this strategy as part of a broader rollout. After acquiring a 100MW portfolio of distribution-level assets from PearlX in November 2023, GoodPeak launched its dedicated energy storage platform in March 2024. The acquired portfolio, often referred to as the “Texas Tens,” consists of 10 projects in ERCOT, all designed for fast-tracked development.

The company has previously emphasized the advantages of these smaller systems, noting their “quicker lead-times than larger, grid-scale batteries.”

Eyes on California and Growing Demand in Texas

While the latest focus is on Texas, GoodPeak is also developing a sizable footprint in California. According to its website, the firm has 14 project sites near Sacramento, with a portfolio including 500MW of solar and 1,200MW of energy storage. However, updates on the progress of these California assets have not yet been publicly released.

As Texas grapples with increasing energy demand driven by population growth, industrial expansion, and extreme weather events, the deployment of scalable, flexible energy storage is becoming more vital. These smaller systems, which can be brought online faster due to streamlined interconnection rules, are positioned as a key part of that strategy.

By securing financing for its Houston-area BESS sites, GoodPeak is now poised to join a growing list of developers addressing the state’s evolving grid challenges with a distributed, nimble approach.

Originally reported by April Bonner in Energy-Storage News.