Aypa Power, a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects, announced the closing of a $190 million financing facility for the 200 MW/400 MWh Bypass battery energy storage system project located in Fort Bend County, near Houston, Texas.
The funding package comprises a $68 million construction-to-term loan and a $91 million tax equity bridge loan, totaling $159 million. Additionally, $31 million in letters of credit were issued, with $26 million designated for project-specific needs. Morgan Stanley Renewables also committed $94 million in tax equity financing through a hybrid partnership flip structure.
SMBC, which served as administrative agent and green loan coordinator, and Santander, which served as coordinating lead arrangers, with Siemens Financial Services as joint lead arranger, provided the funding.
The project is supported by a long-term offtake agreement and is scheduled for completion in the third quarter of 2025. Canadian Solar’s e-Storage will deliver a 498 MWh DC standalone battery energy storage system for the project as per the contract it secured from Aypa Power in July last year.
“This financing milestone highlights Aypa Power’s ability to deliver projects that set new standards in the market,” said Bill Nguyen, Executive Vice President of Finance at Aypa Power. “As one of the first fully contracted energy storage projects in ERCOT, Bypass BESS demonstrates how innovative financing structures and strong partnerships can deliver critical infrastructure to meet the region’s growing power needs.”
According to Mercom’s 9M and Q3 2024 Funding and M&A report for Energy Storage and Smart Grid, energy storage project funding in 9M 2024 saw a record $10.1 billion raised in 35 deals compared to $6.8 billion in 26 deals in 9M 2023.
In November, esVolta, an energy storage project developer, completed a $110 million tax equity transaction with Greenprint Capital Management to develop and construct the 300 MWh Hummingbird battery energy storage project in San Jose, California.
