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Jan 14, 2025

New Acquisition Opportunity in ERCOT

At Camelot, we always try to keep a finger on the pulse of the solar and energy storage M&A market, as many of our clients turn to us for technical and market due diligence on these sorts of engagements. We just had a noteworthy M&A opportunity come across our desk from our friends at Enerdatics and wanted to share this opportunity with our network. It’s for one hybrid (Solar + BESS) project in ERCOT – a region where many folks have had development and acquisition interests. A few details to highlight:


  • Project located in Reeves County (West Hub)

  • Point of Interconnect PV Capacity is 16.1 MWdc and BESS Capacity is 28.2 MWh (Assumed to be a 2-hour battery with an overbuild). It’s designed to participate in ERCOT as a Settlement-Only Distribution Generator (SODG) with Clip Charge and Energy Arbitrage.

  • Solar PV will employ bifacial modules with single-axis tracker and the BESS equipment will use Li-ion technology. 

  • Interconnection is planned with Texas New Mexico Powe Company (TNMP), with a 12.47 kV voltage specification, connected to a substation, which is 0.3 miles from project to Point of interconnect. 

  • Key milestones such as the completion of Initial Assessment (IA) studies and Phase I ESA have been achieved for both sites.

  • Due to its location, there are no county requirements for environmental permitting. Given the project size, state permitting requirements are also favorable.

  • Lease agreements for 30+ years have been secured 

  • Approx. 70 Acres secured, possibly allowing future additional buildout

  • Anticipated COD in Q4 2025.


Camelot has recently performed diligence on, and supported the development of, several projects in ERCOT (“TX 10’s”) and we find that revenues can vary widely based on the specific node, though volatility in the region is moderate and favorable to BESS project economics. The DC-coupled configuration is somewhat unique to the market, allowing clipping capture from the solar side, but making market participation more difficult; In ERCOT, regardless of the coupling configuration, the solar and the BESS systems apply for interconnection separately. 


Camelot also has recent data on CAPEX and OPEX applicable to the region, and can perform a wholistic economic analysis of the projects to verify the seller’s assumptions. Overall, depending on the quality of the development of course, this could be good opportunities in an active market.

If you are new to the ERCOT market and/or BESS considerations, feel free to check out our relevant articles:





If you are interested, we would be glad to put you in touch with our friends at Enerdatics who are tracking the deal and, of course, if you decide to pursue and need any help on the due diligence side of things, please reach out to Taylor Parsons or Shawn Shaw, PE.

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