esVolta Secures $185 Million Senior Secured Credit Facility

esVolta, a large-scale energy storage project developer, has closed a $185 million senior secured credit facility.

The credit facility will provide additional development capital to secure obligations principally relating to interconnection, power purchase agreements (PPA), equipment deposits, and early pre-NTP construction funding for its 20+ GWh pipeline energy storage projects across the U.S. This funding will enable esVolta to increase its ability to provide a green the electric grid while meeting the reliability needs of energy customers in communities across its portfolio.

Nomura Securities International acted as the Sole Lead Arranger and Bookrunner, and Nomura Corporate Funding Americas, LLC acted as the Administrative Agent. Copenhagen Infrastructure Partners, through its Green Credit Fund I and Voya, participated in the financing. esVolta was represented in the transaction by Orrick, Herrington & Sutcliffe, LLP, and Nomura was represented by Norton Rose Fulbright U.S. LLP.

“Closing this financing represents an important strategic milestone for esVolta, as the facility will provide an efficient source of financing for our next wave of storage projects that are designed to help drive decarbonization of the U.S. electric power grid,” said Randolph Mann, CEO and Founder of esVolta.

“We are delighted to have led this strategic pre-NTP financing for esVolta as they are one of the first movers in the U.S. battery storage space,” said Alain Halimi, Managing Director, Nomura’s IPB. “This financing will support esVolta’s growth and continued ambition to deliver critical grid stabilization solutions.”

According to Mercom’s  Annual and Q4 2023 Funding and M&A Report for Storage & Smart Grid, announced debt and public market financing for Energy Storage companies in 2023 decreased 52% YoY with $9.8 billion in 34 deals compared to $20.6 billion in 28 deals in 2022, the year of LG Energy Solution’s $10.7 billion IPO.

Last month, Invenergy, a developer of renewable energy projects, secured a $900 million Green Letter of Credit facility to support Invenergy Renewables Finance North America. The funding will support Invenergy’s growing project development pipeline of large-scale renewable and other clean energy generation and storage facilities in the Americas.