Intersect Power secures $837 million financing for Texas battery storage projects
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Intersect Power, LLC, announced the closing of two transactions totalling $837 million of financing commitments for the construction and operation of three standalone Battery Energy Storage Systems (BESS) in Texas.
The deals involve construction loans at the portfolio level, financing with tax equity, and long-term debt with top industry partners.
The financing covers the storage systems Lumina I, Lumina II, and Radia, which are all expected to be operational in 2024.
The expected time for the projects to move from the conceptual stage to the commissioned stage is less than 12 months.
Also read: Akaysha Energy Secures Record A$650 Million BESS Financing
Each BESS consists of 86 Megapacks (Tesla’s battery energy storage system), with Lumina II and Radian being operated by Autobidder (Tesla’s real-time trading platform).
In addition, all of these storage systems will reportedly provide 320-megawatt hours of battery storage with a two-hour duration.
The batteries offer extra versatility to Intersect’s Texas operational fleet, providing 1.2 Gigawatt-peak of solar energy along with 1 GWh of battery storage.
Also read: Iberdrola and Multiverse Computing complete trials to increase grid-scale battery efficiency
Sheldon Kimber, CEO and Founder of Intersect Power, said, “Batteries will be a vital part of the energy transition and are the perfect complement to the billions of dollars of solar generation that we are building in California and Texas,”
He added, “These assets should allow us to provide more consistent financial performance from a diversified fleet of renewable generation and storage, benefiting from increasing market volatility and periods of high prices while protecting us from periods of low market prices. This stability will be critical as we expect to triple the size of our portfolio over the next three years.”
Morgan Stanley will provide tax equity, while HPS Investment Partners will oversee the funds and accounting and be in charge of making construction debt and term debt investments.
In addition, Deutsche Bank is collaborating on the construction debt facility and supplying operational letters of credit to the projects. The projects are eligible for Investment Tax Credits under the Inflation Reduction Act.
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