Ameresco’s Major Development in Energy Storage
In a significant move aimed at enhancing energy security and resiliency, Ameresco, Inc. has officially unveiled a 50MW battery energy storage system (BESS) located in Kingman, Arizona. This project is notable for being the largest behind-the-meter (BTM) installation in the state and ranks as the fourth largest of its kind across the United States. The system is expected to enter commercial operation in October 2025, marking a key milestone in Arizona’s energy landscape.
The BESS is being developed specifically for Nucor Corporation, North America’s largest steel manufacturer, which is in the process of expanding its operations in Kingman. This expansion includes the introduction of a new electric arc furnace, aimed at significantly increasing production capacity to 600,000 tons annually. This strategic move is designed to enhance Nucor’s operational capabilities while also addressing the growing demand for sustainable energy solutions.
Details of the Battery Storage Installation
Construction of the battery energy storage system commenced in December 2024, incorporating 58 Tesla Megapack 2XL units. These units are integrated under a 20-year Storage Services Agreement (SSA) and are located at a Nucor substation within the service area of the Mohave Electric Cooperative. The operational management of the BESS will be handled by the Arizona Electric Power Cooperative (AEPCO), which is part of the larger network of Arizona G&T Cooperatives.
In addition to the battery storage system, Ameresco plans to facilitate the installation of a 25MW AC solar asset at the site, which is anticipated to commence operations in 2026. This dual approach not only supports Nucor’s energy transition but also aligns with broader efforts to create a more reliable and sustainable energy infrastructure.
Comments from Key Stakeholders
During a recent event hosted by Nucor, Jonathan Mancini, the Senior Vice President of Solar & BESS Project Development at Ameresco, expressed enthusiasm about being chosen for this innovative project. He noted that the BESS would play a crucial role in stabilizing the electric load generated by Nucor’s new arc furnace, thereby alleviating pressure on the local grid. This stabilization enhances the utility’s ability to manage power fluctuations and increases the incorporation of renewable energy sources into the plant’s operations.
Furthermore, Matt Blitch, Vice President and General Manager at Nucor, highlighted the site-specific nature of the battery energy storage solution. He indicated that it was designed to meet the unique demands of the grid serving the plant, thereby ensuring operational reliability during the expansion phase.
The collaboration between Ameresco and Nucor, along with guidance from GreenFront Energy Partners on the contractual and structural aspects of the solar and storage solutions, exemplifies a concerted effort to meet evolving energy demands while fostering sustainability.
For more information on Ameresco’s energy storage solutions, visit their official website.
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