California utility renegotiates purchase agreement with RWE for 476MWh BESS after regulator rejects initial proposal

AI Summary

• •San Diego Gas & Electric (SDG&E) is seeking regulatory approval to acquire an operational 476MWh Battery Energy Storage System (BESS) in Imperial County from RWE.
• •This acquisition follows a renegotiation of the purchase agreement after the initial proposal was rejected by regulators, indicating heightened scrutiny on BESS project economics and PPA terms.
• •The transaction involves an operational asset, suggesting a potential trend towards utilities acquiring existing storage capacity, which could impact new development opportunities and market dynamics.
• •The ongoing regulatory challenges and the need for approval for a renegotiated PPA highlight the significant financial and regulatory risks developers face in securing viable contracts for large-scale energy storage projects in California.

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