HOUSTON–(–)–Broad Reach Power, a utility-scale storage independent power producer (IPP), announced today its formation and backing by leading energy investors EnCap Investments L.P. (EnCap) and Yorktown Partners.
The company will invest in, develop, own and operate utility-scale battery plants in North America, initially pursuing opportunities where market fundamentals are driving demand for flexible, fast-responding generation. Broad Reach’s battery plants will provide utilities, generators and customers access to technological insight and tools for managing merchant power risk so they can better match supply and demand. It will work with independent system operators (ISOs) who are charged with grid reliability, as well as with utilities, generators and risk managers. In addition, the company will seek to integrate its assets with existing wind, solar or thermal power plants to drive greater efficiencies.
“The fundamental changes transforming the global power industry have altered the composition of generation supply,” said Broad Reach Power Managing Partner and Chief Executive Officer Steve Vavrik, who has spent the last two decades developing and managing more than $4 billion worth of investments with companies including GE, Enron, First Wind, SunPower and Apex Clean Energy. “Due to the increasing demand for clean energy and decreasing cost for this generation there’s a mismatch between when power may be available and is needed. At the same time, utility-scale battery storage systems are more affordable and efficient and can fill this emerging gap. Coupling the skills of our experienced team with the financial and operational support from our partners at EnCap and Yorktown positions us perfectly to capitalize on this opportunity so that we can ultimately deliver increased grid reliability as well as more capacity for additional renewable assets.”
Joining Vavrik on Broad Reach Power’s management team as Managing Partners are Chief Financial Officer Josh Prueher, Chief Operating Officer Mark Klein and Chief Technology Officer Doug Moorehead. Combined, the management team brings together decades of experience in energy project development and hands-on battery system design, engineering, and operations. The overall skill set the team shares uniquely positions Broad Reach Power to adapt optimally and rapidly as battery technology continues evolving.
The company recently acquired a portfolio of solar projects in the pacific northwest and is actively discussing several other initial opportunities. It plans to control more than 2 gigawatts (GW) of generation by 2021 between standalone storage power plants as well as combinations with wind, solar, or existing thermal power plants. Broad Reach also expects to rapidly add more staff to its Houston headquarters and its office in Los Angeles as it builds out a project pipeline.
About Broad Reach Power
Broad Reach Power is a utility-scale storage independent power producer (IPP) based in Houston with an office in Los Angeles backed by leading energy investors EnCap Investments and Yorktown Partners. The company’s utility-scale battery plants give utilities, generators and customers access to technological insight and tools for managing merchant power risk so they can better match supply and demand. Broad Reach is led by a team comprised of solar, wind, and storage experts, who have delivered more than 4 GW of projects and have a combined 80 years’ experience in the field. For more information about the company, visit www.broadreachpower.com.
About EnCap Investments L.P.
Since 1988, EnCap Investments has been the leading provider of venture capital to the independent sector of the U.S. energy industry. The firm has raised 21 institutional oil and gas investment funds totaling approximately $37 billion and currently manages capital on behalf of more than 350 U.S. and international investors. For more information, please visit www.encapinvestments.com.
About Yorktown Partners LLC
Yorktown Partners LLC is a energy-focused private equity firm that has raised $9 billion of capital commitments across thirteen partnerships since 1991. The firm has provided financing and leadership to over 90 companies in the energy industry. Yorktown’s principals are significant investors in their partnerships. Yorktown’s limited partners include endowments, foundations, families, insurance companies, and other institutional investors.