$1 billion in Texas project financing: esVolta and Doral Renewables secure funds for ERCOT solar, storage

The battery boom in Electric Reliability Council of Texas (ERCOT) in Texas might be slowing, but projects remain bankable, with MUFG Bank funding new and massive capital investments in two major financial closings announced this week. Utility-scale developers esVolta and Doral Renewables secured a combined $1.04 billion to advance solar and storage projects.

esVolta secured its $139.6 million in project financing from MUFG Bank for its 150 MW / 300 MWh Boxcar Energy Storage project in Wylie, Texas, northeast of Dallas and part of the wider suburbs of the city, with the financing package consists of a construction loan, a tax equity bridge loan, letters of credit, and term loan facilities.

The project is slated to become operational in 2027 and is backed by a long-term offtake agreement with an unnamed corporate customer. With Boxcar online, esVolta’s Texas portfolio will be sized for at least 1.56 GWh of storage capacity across five battery projects. On the legal and financial advisors side, Orrick, Herrington & Sutcliffe LLP were said to have advised esVolta on the transaction, while Winston & Strawn LLP advised MUFG.

Deals between esVolta and MUFG go back multiple years, including a $258 million senior credit facility for a 980 MWh portfolio of standalone battery storage projects in 2024.

What they said:

Justin Johns, Chief Financial Officer of esVolta: “MUFG is a premier lender in the energy infrastructure space, and their support of Boxcar reflects strong confidence in both the project and esVolta’s platform. As ERCOT continues to experience rapid load growth and continued volatility, projects like Boxcar are essential to maintaining grid stability and delivering reliable power when it’s needed most.”

Fred Zelaya, Managing Director, MUFG: “MUFG is proud to support esVolta on the Boxcar BESS project. MUFG recognizes that energy storage technology and infrastructure are critical to the growth of clean energy, and we’re intent on strategically supporting projects in key markets such as ERCOT.”

Doral Renewables and Cold Creek Solar + Storage

Meanwhile in the bigger deal announced this week, Philadelphia-based Doral Renewables closed nearly $900 million in financing commitments for its Cold Creek Solar + Storage project in Schleicher and Tom Green Counties, Texas, located some 400 kilometers southwest of Dallar. The project includes 430 MWac of solar generation and 340 MWh of storage. Full construction is already underway following a Notice to Proceed issued in March 2026, with commercial operations targeted for the summer of 2028.

The financing syndicate was led by MUFG and includes Santander, HSBC, Ally, and IDB. The deal has the usual complexities of financing including construction loan, a tax equity bridge loan, letters of credit, and term loan facilities.

From the press release: “The debt facilities are comprised of over $400 million of construction-to-term financing, close to $35 million of tax equity bridge loan financing, and approximately $55 million of Letters of Credit. The project will also monetize $360 million of Production Tax Credits through a 10-year PTC Tax Credit Transfer Agreement with an investment-grade rated corporate buyer.”

Legal and financial advisors for the deal included McDermott Will & Schulte, Norton Rose Fulbright, Marathon Capital, White & Case, and Stonehenge Capital.

What they said:

Evan Speece, Chief Financial Officer at Doral Renewables LLC: “We are delighted to announce the close of these financings for Cold Creek. Partnering with such a robust lender group led by MUFG and expanding our network with new collaborators while also closing the PTC Transfer transaction positions us well for continued growth.”

Louise Pesce, Head of North American Power, Project Finance, MUFG: “We are proud to support Doral Renewables on the Cold Creek Solar + Storage project, which underscores our commitment to standing alongside clients as they advance critical infrastructure. Projects like Cold Creek play an important role in strengthening US energy independence while helping meet growing power demands with reliable, utility‑scale solutions. MUFG is pleased to work with Doral and the broader lender group to deliver unique financing solutions that support long‑term growth.”