Finance for 1.5 GWh of batteries in US Sun Belt states Texas, Arizona

GridStor has acquired a 100 MW/400 MWh battery energy storage system (BESS) in Arizona and developers On.Energy and esVolta have secured the funds to advance multiple projects in Texas.
ERCOT expects a 50% rise in peak electricity load demand across its grid by 2030. | Image: jplenio/Pixabay

Energy storage investment is flooding in across the United States’ Sun Belt as a 100 MW/400 MWh BESS has changed hands in Arizona and finance has been secured for 1.14 GWh of batteries in Texas.

Miami-based battery developer On.Energy has secured a construction credit facility from the Pathward N.A. national bank and South Carolina-based renewables lender BridgePeak Energy Capital which will enable it to install what the company described, in a press release on Jan. 28, 2025, as its 160 MWh Palo de Agua battery portfolio across Texas.

On.Energy’s website lists 10 batteries, all 9.9 MW/20 MWh, as its Palo de Agua Texan portfolio on its website, which indicates that 200 MWh of storage capacity will be operational in 2025.

On.Energy said it has developed 80 MWh of operational energy storage capacity in Houston and boasts a 2 GWh pipeline, in California, Texas, and Mexico, for deployment through 2028.

The Electric Reliability Council of Texas (ERCOT) grid is the focus of three esVolta battery projects which have benefited from investment from New York-based renewables financier Captona LLC.

Captona has made a preferred equity investment – giving it priority over other investors – for an unspecified amount which, combined with the sale of investment tax credits associated with three esVolta battery projects is expected to generate $243 million to finance the sites, according to California-based esVolta.

The Texan lithium-ion battery sites in question, all of which are under construction and set to be operational before July 2025, are the 240 MW/480 MWh Anole project, at Seagoville; the 150 MW/300 MWh Desert Willow site, at Midlothian; and the 100 MW/200 MWh Burksol facility, in Dickens County.

EsVolta said it has more than 30 projects in its energy storage development pipeline, with a total capacity of almost 25 GWh.

In Arizona, Goldman Sachs-backed, Oregon-based energy storage business GridStor has acquired a 100 MW/400 MWh BESS from Los Angeles-based battery developer Capacity Power Group, for an undisclosed sum.

Goldman Sachs Asset Management-backed GridStor said that acquisition and plan to construct battery storage in Arizona comes during a critical time for the region with rising power demand from residential and large industrial customers.

Earlier in January, the Oregon-based developer announced the acquisition of a 200 MW/800 MWh battery storage project from Black Mountain Energy Storage in eastern Oklahoma.

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