KEY POINTS
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The $600M Cormorant energy storage project will store enough power to supply energy to 321,000 homes for 4 hours, boosting grid reliability in the Bay Area.
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The project will use lithium iron phosphate (LFP) battery technology, known for its thermal stability and long cycle life, making it ideal for grid-scale applications.
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Supports California’s renewable energy targets by storing surplus power and reducing reliance on fossil-fuel plants during peak demand.
The $600 million Cormorant Energy Storage Project has started construction in Daly City, California, according to a statement from owner Averon Energy on March 24, 2026.
The energy storage project will have the capacity to power approximately 321,000 homes for up to four hours, positioning it as a critical source of flexible grid support in the Bay Area. The project represents a significant infrastructure investment, designed to store electricity during periods of abundance and dispatch it during peak demand.
U.S. Energy Storage Market Surged in 2025
The development aligns with broader trends in the U.S. energy storage market, which saw installations surge to 57.6 GWh in 2025, a 30% increase over 2024 and four times the capacity added in 2022, according to a Solar Energy Industries Association report.
Total utility-scale capacity reached 137 GWh, underscoring energy storage’s emergence as core grid infrastructure for utilities and customers alike.
For construction firms, this growing demand for reliable electricity presents opportunities for grid-connected, revenue-generating projects that reshape scopes, specifications, partnerships, and profit models.
Expanded Scope to Meet Growing Need
Initially conceived as an 188-MW/752-MWh facility, the Cormorant Energy Storage Project was later expanded to 250 MW/1,000 MWh to address the region’s growing need for large-scale battery storage.
With an estimated cost of $600 million, the facility is expected to begin operations in 2027.
Technology and Construction
The Cormorant project will use lithium iron phosphate (LFP) battery technology, known for its thermal stability and long cycle life, making it ideal for grid-scale applications. Primoris has been selected as the engineering, procurement, and construction contractor.
During peak construction, the project is expected to employ approximately 175 workers, providing a temporary boost to the local economy. Once operational, the facility will require ongoing technical, maintenance, and operational support to ensure long-term economic contributions to the community.
Ownership and Offtake
Arevon will own and operate the Cormorant Energy Storage Project under a long-term offtake agreement with MCE, a community choice electricity provider serving over 1.8 million residents and businesses across Contra Costa, Marin, Napa, and Solano counties. Energy stored at the facility will directly benefit customers throughout much of the North Bay, according to officials.
This offtake structure provides Arevon with revenue certainty while offering MCE a flexible resource to manage peak loads and integrate increasing amounts of solar and wind power. Such agreements are widely used to finance utility-scale storage projects in the evolving energy market.
Advancing California’s Energy Goals
California’s rapid expansion of renewable energy generation has created an increasing need for storage solutions to balance midday solar surpluses and evening demand peaks.
Large-scale battery projects like Cormorant are designed to address these challenges, reduce reliance on fossil-fuel peaker plants, and enhance overall grid stability.
Arevon CEO Justin Johnson emphasized the project’s significance and stated that the start of construction marks a key milestone for both the company and the Daly City community.
Johnson highlighted the critical role of storage facilities like Cormorant in strengthening California’s energy grid by storing power when it’s abundant and delivering it during periods of high demand. He also underscored the nonresidential project’s contributions to grid reliability, affordability, and the state’s long-term clean-energy objectives.
Arevon Energy’s Broader Portfolio
Shanelle Montana, Arevon’s Chief Development Officer, emphasized the importance of community engagement in the company’s development process. Montana noted that the Cormorant project reflects close collaboration with local leaders and residents, ensuring the facility integrates seamlessly into the community over its multi-decade lifespan.
Arevon is a nationwide renewable energy developer with more than 3.7 gigawatts in operation, representing over $5 billion in capital investment, and 550 MW currently under construction.
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