The financing will support the construction and operation of a portfolio of five energy storage projects in the US, including $903m funding for two projects in Texas and $884m for the three projects on the ERCOT power grid in Texas
Construction underway at the Sierra Estrella Energy Storage project in Avondale, Arizona, which just received the largest financing package for a single standalone energy storage project, worth $707 million. (Image: Plus Power)
Plus Power has secured $1.8bn in new financing to build five energy storage projects, with a combined capacity of 1.04GW/2.76GWh, across the states of Arizona and Texas.
The financing, offered by 11 lenders and investors, will help the company’s efforts in the construction and operation of the portfolio.
It includes $707m funding for the 250MW Sierra Estrella Energy Storage facility in Avondale and $196m for the 90MW/360MWh Superstition energy storage project in Gilbert, Arizona.
Sierra Estrella represents the largest financing for a standalone energy storage project to date.
It also includes an $884m financing to support the construction of three batteries on the Electric Reliability Council of Texas (ERCOT) grid in Texas, totalling 700MW.
Plus Power has secured $212.2m tax equity financing from Foss & Company and $276m of construction and term financing for the 300MW/600MWh Rodeo Ranch Energy Storage facility.
It has raised $196m in construction and term financing for the 200MW/400MWh Ebony Energy Storage facility in Comal County, northeast of San Antonio.
Also, the company procured $200m in construction and term financing for the 200MW/400MWh Anemoi Energy Storage facility in Hidalgo County.
The three battery storage projects in Texas are expected to begin operations from the next summer, to handle growing demand amid extreme temperatures, said the energy company.
Plus Power chief financial officer Josh Goldstein said: “Over the last year, Plus Power has raised an unparalleled amount of capital for standalone storage projects from a wide range of leading energy project finance banks and investors.
“This capital will support the ongoing buildout of the largest and most diverse portfolio of standalone storage projects in the U.S. The scale highlights our first-mover advantage in bringing high-quality projects to market as well as the tremendous work by our fantastic team.
“We deeply value our financing partners who support the construction and operation of our wide portfolio across the U.S., enabling decarbonization and the transition to a more efficient grid.”
Plus Power has secured funding from Deutsche Bank and First Citizens Bank, as coordinating lead arrangers for the Texas portfolio, while First Citizens Bank served as the administrative agent and Siemens Financial Services as the joint lead arranger.
For the Arizona portfolio, the company has secured funding from Norddeutsche Landesbank and Société Générale as coordinating lead arrangers.
Also, Mizuho, US Bank, Bank of America, CoBank and Siemens Financial Services served as joint lead arrangers for the Arizona portfolio.