Corporate Funding for Energy Storage Companies Up 55% with $26.4 Billion in 2022

SUSI Partners, a Swiss-based fund manager, and SMT Energy, an energy storage project developer, secured tax equity investment from specialized tax equity investor Greenprint Capital for a co-owned 100 MW battery storage portfolio located in South Texas.

The 100 MW battery storage portfolio was developed by SMT Energy, which managed the assets during construction and will continue overseeing commercial operations as a minority owner. The portfolio consists of ten utility-scale standalone battery energy storage projects that are expected to help stabilize the region’s strained power grids by balancing supply and demand mismatches. According to the press release, all ten battery storage projects in the portfolio are expected to start commercial operations in the coming months.

In the U.S., battery energy storage systems became eligible for investment tax credits (ITC) after the passage of the 2022 Inflation Reduction Act, which takes account of the growing importance of battery storage technology in balancing electricity grids and enabling the shift to renewable energy supplies. The majority of projects in the Texas battery storage portfolio qualify for a higher ITC rate due to their contribution to the economic transition of so-called Energy Communities.

According to Mercom’s recently released 1H and Q2 2023 Energy Storage and Smart Grid Report, There were 17 announced Energy Storage project funding deals in 1H 2023, bringing in a combined $4.1 billion compared to $3.8 billion in 16 deals in 1H 2022.

Broad Reach Power, a utility-scale battery storage project developer, recently 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.