1 GWh Texas battery portfolio secures financing

Asset manager UBS Asset Management has secured financing for four BESS plants in Texas, with Deutsche Bank and First Citizens Bank serving as co-lead arrangers on a $315.7 million financing.

The four projects are expected to be operational by the end of the year. With a combined capacity of 730 MW / 1,049 MWh, they will play a key part in Texas’ transition to renewable energy.

UBS Asset Management’s co-head of energy storage investment strategy, Ken-Ichi Hino, said the group sees the deal as a sign of “expanding opportunities for battery storage systems.” He thanked the backers for their industry knowledge and assistance in arranging the financing, which is a major coup for the BESS industry in Texas.

Texas already has many big battery projects in operation. The United States’ power grid added 4.2 GW of battery storage in H1 2024, with Texas one of the four states making up the lion’s share of this.

Deutsche Bank and First Citizens Bank both have a track record in renewables investments. Representatives from the two banks said they were confident that the investment would be a positive addition to their respective portfolios.

“These four battery projects represent a significant addition to the battery energy storage capacity of the Texas electrical system,” said Mike Lorusso, who heads First Citizens Energy Finance. “We were pleased to serve as co-lead arranger for these important projects and to work closely with UBS Asset Management to deliver a successful financing.”

SocGen, Siemens, BankUnited, Mitsubishi HC Capital, and Bayern LB were part of a wider syndicate that supported this recent Texan deal alongside the main backers.