Jupiter Power, a developer and operator of utility-scale battery energy storage systems, raised $174.6 million in portfolio debt financing for six battery energy storage projects in the ERCOT market in Texas. Jupiter is backed by EnCap Investments, Yorktown Partners, and Mercuria Energy. KeyBank National Association provided the financing.

The six projects are all stand-alone, front-of-meter battery energy storage systems and are supported by Jupiter’s optimization strategies to maximize revenues.

Four battery energy storage projects are operating, including the Flower Valley II 200 MWh project. The remaining two projects, each 200 MWh, are currently in commissioning.

At over 650 MWh, Jupiter has the leading stand-alone energy storage portfolio in ERCOT.

“This financing demonstrates that carefully sited, well-executed battery projects managed by innovative trading and forecasting teams have recognized value and represent an enormous opportunity for growth,” said Kellie Metcalf, Managing Partner, EnCap Investments.

Jupiter was advised by Norton Rose Fulbright & Husch Blackwell on this financing transaction for the Term Loan and LC Facility with KeyBank.

According to Mercom’s recently published Q1 2022 funding and M&A report for storage, Grid & Efficiency, total corporate funding (including VC, Debt, and Public Market Financing) in Battery Energy Storage came to $12.9 billion in 26 deals compared to $4 billion in 27 deals in Q4 2021.

Funding increased significantly year-over-year (YoY) compared to $4.7 billion in 18 deals in Q1 2021.

In Q1 2022, announced debt and public market financing for Battery Storage technologies were higher, with $11.7 billion in five deals compared to $2.4 billion in six deals in Q4 2021 and $3.7 billion in four deals in Q1 2021.