NineDot Energy, a developer of community-scale battery energy storage systems (BESS), has secured a $225 million equity capital commitment from Manulife Investment Management along with their existing institutional equity investor, Carlyle.
The new equity funding, which Manulife Investment Management led with a $135 million commitment, is expected to enable NineDot to advance its project pipeline in the New York City area and explore opportunities for geographic expansion and potential acquisitions.
Manulife Investment Management also acquired an equity interest in NineDot as part of the transaction.
NineDot has now secured a capital base of approximately $400 million, including existing project financings from CIT, Sumitomo Mitsui Banking Corporation, and NY Green Bank, a New York State Energy Research and Development Authority (NYSERDA) division.
Earlier this year, NYSERDA provided a $25 million revolving credit debt facility to build more battery storage projects that support New York’s shift to greener energy sources.
NineDot’s initial battery storage site, located in the Pelham Gardens neighborhood of the Northeast Bronx, became operational last summer. The company is said to have approximately 30 projects under construction across the New York metro area, with more in development.
The company plans to develop 400 MW of battery storage capacity by the end of 2026.
Recep Kendircioglu, Global Head of Infrastructure at Manulife Investment Management, said, “We have been believers in community-scale battery storage for a long time and are pleased to form a long-term equity partnership with NineDot Energy. We view NineDot as the leading BESS developer in a complex but attractive market.”
According to Mercom’s 9M And Q3 2023 Funding and M&A Report for Storage & Smart Grid. Corporate funding in the energy storage sector was down 31% in 9M 2023, with $15.2 billion raised in 94 deals compared to $22 billion in 93 deals in 9M 2022. Corporate funding in Energy Storage increased 67% in Q3 2023 with $8.2 billion in 35 deals compared to $4.9 billion in 32 deals in Q2 2023.