More than $600m for four US utility-scale batteries

Banks and clean energy investors in the United States have committed $637 million in loans, project share purchases, and tax equity investments for four grid-scale batteries which are under construction.

Canadian Solar project development subsidiary Recurrent Energy has closed a $183 million finance package for its 100 MW/200 MWh battery energy storage system (BESS) in Maverick County, Texas.

The site is due to be operational this summer and will operate on a merchant basis to support the Electric Reliability Council of Texas (ERCOT) grid.

The $183 million comprises a construction loan, a $112 million letter-of-credit facility, and a bridge loan until Californian clean energy investor Greenprint Capital delivers on a $71 million tax equity partnership commitment.

German state-backed lender Norddeutsche Landesbank Girozentrale was lead arranger of the finance package for the Fort Duncan storage project, which is under construction by Burns & McDonnell and will feature an energy storage system supplied by Canadian Solar’s e-Storage division. Canadian Solar said the site would create 75 jobs during peak construction.

In other news, Jupiter Power LLC will benefit from a newly-announced $286 million finance package to support the construction of two standalone battery storage systems: Tibbits in Michigan and Tidwell Prairie in Texas. The two projects, totaling 300 MW/800 MWh, are expected to commence commercial operations later this year.

Blackrock-owned Jupiter said the funds will take the form of construction loans, tax equity bridge lending, and a letter of credit. With both BESS due online this year, UK-based lenders Barclays and HSBC acted as lead arrangers of the finance package, with Simpson Thatcher & Bartlett advising Jupiter and Latham & Watkins advising the lenders.

In 2024, Jupiter Power entered a 20-year power purchase agreement with Consumers Energy for its Tibbits project, which is on track to be the first operational utility-scale battery energy storage system in Michigan. The Tidwell Prairie project is under a long-term tolling agreement with an undisclosed counterparty.

Announcing the finance, Jupiter said the two BESS would take its operational energy storage fleet to almost 2.2 GWh.

Colorado-based developer Peregrine Energy Solutions LLC has also announced funding, of $115 million to complete construction of a 150 MW BESS in an undisclosed US location.

The BESS, which will operate on a merchant basis and is due online this year, secured the loans from First Citizens Bank, as joint coordinating lead arranger and collateral agent, and Japan’s Nomura Securities International, Inc., as joint coordinating lead arranger and administrative agent.

Backing for the project also included a $53 million equity commitment from Bildmore Clean Energy, which is funded by Texan private equity investor EnCap Energy Transition Fund.

Peregrine said it has developed a 22 GWh pipeline of energy storage projects across the grids of US utilities Southwest Power Pool, Midcontinent Independent System Operator, PJM Interconnection, Western Electricity Coordinating Council, and ERCOT.