U.S. distributed energy storage provider closes $150m finance

New York-based Convergent Energy and Power has closed a programmatic, construction-to-term loan, tax-equity bridge loan, and letter of credit facility with MUFG. Convergent said the funding package will support acceleration of its energy storage and solar portfolio across North America.

Convergent anticipates $150 million in funding from the package, with a framework for future financing rounds as the company moves its pipeline forward.

The company’s Peak IQ product is a lithium-ion energy storage system Convergent says uses artificial intelligence and machine learning to ensure energy is stored and dispatched at the most strategic times.

A Convergent spokesperson told pv magazine USA its customers are utilities and commercial and industrial energy users. With a distributed-energy focus, Convergent’s energy storage solutions are largely located where power is consumed rather than generated, which can speed grid interconnection by reducing electricity transmission challenges.

While Convergent works across North America, it is focusing on regions where power is more expensive, making energy storage appealing. Such areas include New York, California, New England, and Ontario.

One of Convergent’s installations is a 4 MW/8 MWh lithium-ion battery energy storage system (BESS) project for Ford Motors’ automotive assembly operations in Windsor, Ontario, at the carmaker’s Essex Engine Plant. The BESS uses Peak IQ battery technology, enabling the automotive giant to reduce its energy costs while providing grid resiliency solutions for the Ontario grid.

Convergent is eyeing a huge opportunity with data centers; the energy demand from which is expected to skyrocket.

“As demand for electricity rises, distributed-generation assets like battery storage will support the delivery of clean, reliable power,” said Fred Zelaya, MUFG’s managing director.

Convergent launched in 2011 to develop, own, and operate large-scale energy storage for industrial customers and utilities. The startup initially self-funded projects, after raising $70 million. The company reports it has more than 800 MW/1 GWh of energy storage and solar-plus-storage systems operating or under development, which is equivalent to the power consumed by around 750,000 homes.

From pv magazine USA.