The power infrastructure arm of global investment firm Ares Management Corp. is partnering on development of as much as 300 MW in New York state energy storage projects.
Ares Infrastructure and Power is working with Dimension Renewable Energy on a portfolio of utility-scale battery storage projects already under development by Dimension. Ares will acquire and build the projects once certain development milestones are met.
Construction is expected to begin later this year.
The potential size of the portfolio could reach 300 MW and 1,200 MWh, enough to power 300,000 homes when needed. Some of the projects will be built on Long Island, according to the release.
“This transaction will provide our investors with access to an attractive growth opportunity in the utility-scale battery storage sector,” said Keith Derman, Partner and Co-Head of Ares Infrastructure and Power. “We are witnessing a historic transformation of the nation’s energy industry. Projects like these demonstrate that battery storage is not only an enabling technology for the continued growth of renewables, but also an investable sector in their own right.”
The portfolio is the third battery storage investment for Ares Infrastructure and Power and adds to the strategy’s more than 60 investments in the climate infrastructure market, representing more than $2 billion of invested capital.
Dimension Renewable Energy has developed, financed and constructed more than 1,200 MW of solar projects across the U.S. in the past six years, according to the company website. It also has developed more than 1 GWh of energy storage.
“Dimension is pleased to partner with Ares on this innovative opportunity throughout the state of New York that will help drive the energy transition. Together, Dimension and Ares will use their combined experience to bring this exciting portfolio to fruition,” said Rafael Dobrzynski, CEO of Dimension.
ResearchandMarkets reported this week that U.S. energy storage capacity could grow nearly 2 GW to more than 6 GW by the end of this year.
Ares Management Corp. has more than $144 billion of assets globally.
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