Broad Reach Power, a utility-scale battery storage project developer, secured $435 million in credit facilities to support the construction of 7 stand-alone energy storage projects totaling 880 MW in Texas and California.
The Battery Energy Storage System (BESS) projects are currently under construction, with expected commercial operation dates ranging from late 2023 through Q1 2024. The projects include 825 MW in ERCOT and 55 MW in CAISO.
Broad Reach Power assembled a financing consortium for this financing, led by Deutsche Bank AG, New York Branch, and including Coordinating Lead Arrangers and Co-Syndication Agents Deutsche Bank AG, New York Branch; MUFG Bank Ltd.; Norddeutsche Landesbank Girozentrale, New York Branch. The Joint Lead Arranger was First-Citizens Bank & Trust Company with Depositary Bank, Collateral, and Administrative Agent Deutsche Bank Trust Company Americas.
Broad Reach Power was represented by White & Case LLP, and Paul Hastings LLP represented the lenders.
“Broad Reach Power is proud to be on the forefront of financing this new asset class, highlighting our portfolio of projects that have been meticulously developed by the team over the last several years as well as the confidence in our team’s ability to construct and operate quality BESS projects,” Peterson continued. “We look forward to constructing the rest of our development portfolio economically, allowing further renewables integration and providing relief to the country’s often strained transmission systems.”
According to Mercom’s recently released 1H and Q2 2023 Energy Storage and Smart Grid Report, eight energy storage project funding deals were announced in Q2 2023 worth $2.1 billion.
Clearway, a solar, wind, and energy storage project developer, recently announced that it had closed $421 million in financing for the 147 MW/ 588 MWh Rosamond Central Battery Energy Storage Project, which is being paired with the operating 192 MW Rosamond Central solar farm in Kern County, California. The construction on Rosamond Central BESS began in April 2023, and the facility is expected to reach commercial operation in 2024.