INTERVIEW: OCI Energy president discusses rebrand and 5 GW pipeline

Fresh off a rebrand from OCI Solar to OCI Energy, President Sabah Bayatli discussed how and where his company is building its pipeline in an interview with NPM.

Bayatli says the rebrand had been in the works for the last nine months and was triggered by the company’s expansion into the storage market, which began in 2022. At that time, Bayatli says the company “saw the need for energy storage coming” and decided to diversify its approach.

OCI Energy has a 5 GW pipeline of projects with 60 percent devoted to solar and the remainder made up of storage. This is the spread Bayatli would like to maintain going forward. He also notes that pipeline figure includes projects where the company has full land control as well as an interconnection position in place.

Bayatli says the company will remain exclusively focused on utility-scale developments with a minimum of 100 MW, though he says 200 MW is the “sweet spot.” He says duration for the company’s storage pipeline is flexible between one-to-four hours.

“The good news is we have that flexibility,” Bayatli said. “And when we develop projects, we typically will secure enough land and room for expansion.”

Interestingly, Bayatli says the majority of the firm’s pipeline is expected to remain distinct between solar and standalone storage with fairly low interest in co-located hybrid projects. Although he says the company does have a couple of those projects in its pipeline, they stemmed from an era pre-IRA when the company was incentivized to co-locate storage to capture solar ITCs.

With tax credits for standalone storage now in place, Bayatli says the incentive for co-location disappears when you consider OCI Energy is primarily geared toward developing and selling projects at various stages of development rather than ownership and operation.

“What we’ve noticed is the type of capital seeking only solar projects is not exactly the type seeking to own energy storage,” Bayatli said. “So co-locating limits you to certain buyer profiles in the market. It really does not make a lot of sense to co-locate unless you are shifting your own resource.”

While Bayatli notes OCI does maintain ownership of some of its development assets, he says the company will continue to develop primarily to sell. He does say it is likely the company will move toward selling projects later in the development stage or even post-COD, he says it still mostly sells at NTP today. Last year, it sold projects under development in ERCOT to the likes of Matrix Renewables and Mitsui & Co.

Bayatli also discussed OCI’s approach to project siting in its native Texas and beyond. In Texas, the company’s pipeline has shifted significantly over the last year and a half from largely Central Texas to ERCOT North and South as well as around the Houston area. Bayatli notes this shift corresponds with changing ERCOT grid dynamics, primarily based on transmission upgrades and buildout.

“The more transmission lines you build, the more opportunities you get to evaluate,” Bayatli said. “So, we keep an eye on all transmission upgrades and evaluate based on that.”

OCI has also expanded beyond its historically singular focus on ERCOT to encompass neighboring southern states in MISO South like Arkansas, Louisiana, and Mississippi. Bayatli adds the company is also expecting to add one new project in TVA territory in Tennessee and another in Georgia Power territory.

While he says this “organic growth” remains the company’s primary focus, Bayatli says the firm is also evaluating “inorganic growth” in a wider arc in areas where it is possible to buy land from smaller developers and thus get a jumpstart on project development. Right now, he says the firm is collaborating with a small developer on such a case in Colorado.

Ultimately, Bayatli says he is interested in any market that is still heavily reliant on coal “because that means renewable momentum will likely be strong there.” Additionally, he says he factors in areas slated for massive load growth, like Texas, particularly when driven by projected AI data center loads.

“What options do they really have other than solar, wind and gas?” Bayatli asks.

Interestingly, Bayatli says he is not closing the door on further diversification for OCI Energy going beyond solar and storage depending on the emergence of new technologies and market dynamics.

“As a developer supporting the energy transition, we should always keep an eye on the market as new technologies come on and look promising,” Bayatli concludes. “As long as it’s sustainable, clean and economical, we’re all ears.”

*This story was originally published exclusively for NPM subscribers in July.

NPM US (New Project Media) is a leading data, intelligence and events company dedicated to providing origination led coverage of the renewable energy market for the development, finance, advisory & corporate community.

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