Utility-scale renewable energy developer Alpha Omega Power (AOP) has acquired and secured financing for the Caballero battery energy storage project.

The 100MW/400 megawatt hours Caballero project battery energy storage system, located in Nipomo, California, will serve the California ISO (CAISO) market.

The project is developed in partnership with Fengate Asset Management and aims to bolster energy supply in San Luis Obispo county.

The battery system will help in enhancing grid reliability and provide clean energy to 100,000 homes during peak demand periods.

The Caballero project is the first in AOP's pipeline of utility-scale battery storage projects to become operational.

Alpha Omega Power CEO Paul Choi stated: “We’re proud to establish our footprint in CAISO with our inaugural utility-scale battery storage project to serve reliable, clean energy to California’s coastal communities.

“We’re thrilled to find a partner in Gridmatic with the depth of energy and software experience to leverage batteries, market expertise and artificial intelligence to smooth the volatility of renewable resources and better match load to generation.”

AOP has partnered with Gridmatic, a power marketer, to optimise the battery operations for Caballero.

Gridmatic chief commercial officer David Miller stated: “Many of California’s electricity market rules were designed before energy storage was considered as a reliability resource. As a result, it is a challenge for battery owners to achieve the financial results necessary to sustain further investment in the state’s rapidly growing fleet of batteries.

“Our industry-leading forecasting and optimisation algorithms can maximise the benefits of battery storage assets while minimising risk of loss, delivering reliability to the California grid while helping make more assets bankable for owners. We’re excited to put these capabilities to use in supporting Alpha Omega Power as it works to build California’s clean energy future.”

Gridmatic's involvement in the Caballero project is part of its contracted portfolio, which includes 300MW of energy storage capacity under management.

The company’s latest energy storage report, published in May 2024, highlights the potential revenue benefits of AI-enabled optimisation for energy storage systems.