Intersect Power, a utility-scale solar project developer, announced closing two separate transactions representing an aggregate of $837 million in financing commitments for constructing and operating three standalone Battery Energy Storage Systems (BESS) in Texas. The transaction covers portfolio-level construction debt, tax equity, and term debt financing.
The three energy storage systems, Lumina I, Lumina II, and Radian, will be operational in 2024. Each project includes 86 Megapacks, Tesla’s BESS technology. Autobidder, Tesla’s real-time trading platform, will operate Lumina II and Radian. The three projects are expected to be operational in 12 months and are claimed to provide 320 MWh battery storage capacity with a two-hour duration.
Morgan Stanley will provide tax equity, and HPS Investment Partners will make construction debt and term debt investments. Partnering in the construction debt facility, Deutsche Bank will give operational letters of credit to the projects. The three projects qualify for Investment Tax Credits under the Inflation Reduction Act.
Orrick, Herrington & Sutcliffe represented Intersect Power as lead counsel on all transactions. CCA Capital advised Intersect Power on the tax equity transactions. Willkie Farr & Gallagher served as counsel to Morgan Stanley Renewables. Skadden, Arps, Slate, Meagher & Flom served as counsel to HPS and Deutsche Bank.
According to Mercom’s recently released 1H and Q2 2024 Funding and M&A report for Storage and Grid, 1H 2024 saw $5 billion in announced project funding from 21 deals, representing a 22% increase year-over-year compared to the $4.1 billion raised in 17 deals in 1H 2023.
This week, Akaysha Energy, an energy storage project developer, secured A$650 million (~$440.92 million) in debt financing from eleven domestic and foreign banks. The facility has a three-year tenor and will be used to construct the Orana Battery Energy Storage System project near Wellington, NSW, within the Central West Orana Renewable Energy Zone, Australia.
