SK Group expands North American presence with 2nd energy storage system in Texas

In a significant move to bolster its presence in the North American energy storage market, SK Group has announced plans to commence construction of a second 100 MW energy storage system (ESS) project in southern Texas within this year, with commercial operations expected to begin next year.
This development follows the successful launch of their first 100 MW ESS project in the same region, which began operations last month. The expansion is part of SK’s broader strategy to increase its U.S. ESS capacity to 900 MW by 2029, extending beyond Texas.

The initiative is spearheaded by SK Gas and SK EterNix, who jointly invested 87.1 billion won in December to establish GridFlex, a local U.S. corporation aimed at penetrating the North American ESS market. SK Gas holds an 80% stake in GridFlex, while SK EterNix owns the remaining 20%. GridFlex has also formed a joint venture, SA Grid Solutions, with Apex Clean Energy, a U.S. renewable energy company, to further its ambitions in the sector.

The U.S. ESS market is poised for substantial growth, with its size projected to more than double from $106.7 billion last year to $263.5 billion by 2032. This surge is driven by the increasing integration of renewable energy sources, particularly in states like Texas and California, where renewable energy generation is high. An industry official noted, “In Texas and California, trading is active where electricity is stored in ESS when prices are low and sold when prices rise, allowing operators to earn high profits depending on their capabilities.”

In parallel, other major Korean companies are also making strategic moves in the U.S. ESS market. Samsung SDI recently secured a 437.4 billion won contract to supply ESS batteries to NextEra Energy, North America’s largest power company, indicating potential for further orders. Additionally, Samsung C&T’s trading division has partnered with LS Electric to establish a joint venture aimed at constructing and operating an ESS complex in the U.S., with plans to pursue a 500 MW project.

LG Energy Solution is also gearing up to enhance its market response by mass-producing lithium iron phosphate (LFP) batteries for ESS at its Holland, Michigan plant starting in the second half of the year. These batteries are known for their safety and cost-effectiveness, making them suitable for large-scale storage applications.