Panhandle Power Solutions expanding into larger storage projects in Texas and beyond

With 500 MWh of storage projects slated for construction this year, storage builder Panhandle Power Solutions’ (PPS) pipeline is trending toward larger projects in a growing number of markets.

In an interview with NPM, PPS VP of Renewables Robin Hurst discussed the company’s growth from a builder of primarily smaller, distribution-connected projects in Texas to one with a wider portfolio backed by a network of multiple supply vendors.

Hurst says the firm has been active in ERCOT since 2020, developing 9.9 MW distribution-connected projects through a unique approach that involves constructing four 2.5 MW DC blocks in a day. Hurst says PPS utilizes a single structure to support the entire DC-AC block on these projects including batteries, inverters, and medium-voltage transformers.

“This allows us to fabricate the entire block within a shop where QA can be monitored more tightly and the work is more efficient than when working in the Texas heat and dust,” Hurst said.

Hurst says roughly half of PPS’s 900 MW of installed storage in Texas has been at this project size. However, he says the company’s current pipeline is now trending upward toward 50 MW with a few as large as 100 MW.

Hurst notes that scaling up storage projects is relatively simple in Texas since a 10 MW vs. 100 MW site is “generally only differentiated by the number of DC blocks and possibly form of interconnection to the grid.”

Hurst says this trend toward larger projects is ringing true outside of the Texas market, as well, with PPS “seeing interest from clients across the US.” Hurst notes the company’s backing from parent company Bristol Bay Native, based in Alaska, as well as complementary capabilities from sister companies have allowed it to expand beyond its Texas base. He says markets beyond ERCOT “continue to mature with local marginal pricing within certain ISO regions more favorable today.”

As for its client base, Hurst says PPS is currently focused on several partners with large portfolios of “shovel-ready projects,” intended to be ready through the second half of this year. While he stops short of naming ongoing partnerships “due to commercial terms,” he notes the company has a goal of developing long-term relationships with partners.

“Through our past performance we have been very fortunate to build partnerships with developers and other service providers, which has led to a referral pipeline,” Hurst said. “We focus on building those relationships.”

As the company builds out its pipeline, Hust says it is focused on reducing costs to combat increased tariff, congestion, and supply chain risks. On the supply side, he notes PPS works with “a network of vendors,” which allows for multiple sourcing options when supply chain issues mount. PPS has experience with several big-name suppliers including POWIN, NARADA, SYL, CATL and Sungrow. Hurst notes that PPS is able to call on its presence in the market to build out this network based on work scope performed each year.

“Suppliers prefer clients they know will continue to request equipment quotes in the future,” Hurst said. “The benefit to our clients is allowing them leverage when negotiating final equipment contracts knowing PPS offers flexibility.”

Hurst says congestion in the interconnection queues also remains a risk and “hurdle to moving fast to market.” he says the onus for combating this is largely on project developers to be aware of this and apply for interconnection and permitting in advance of their projects targeted in-service dates.

On the tariff front, Hurst says he expects project impacts to trend downward as developers and suppliers become more comfortable with the new norms around affected countries.

“The uncertainty of the tariffs created angst within the marketplace before the [Biden] Administration passed the latest round,” Hurst said. “With tariffs now being understood, we expect to see suppliers move production outside of impacted countries and developers to maneuver to optimize value for their projects.”

*This story was originally published exclusively for NPM subscribers last month.

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. Download our new mobile app.