EnerSmart locks debt for 165 MW of merchant BESS projects in California

Pomona Energy Storage facility, California. Image by AltaGas.

May 25 (Renewables Now) - Energy storage developer EnerSmart Storage Holdings LLC has secured USD 78.2 million (EUR 73m) in debt to back the construction of a 165-MW portfolio of utility-scale battery storage systems in California’s San Diego County.

The loan facility was signed on Tuesday with the North American Development Bank (NADBank) and Siemens Financial Services. EnerSmart will receive the debt through its subsidiary EnerSmart Storage OpCo II LLC, which will allocate the funds for the design, construction, and operation of nine energy storage facilities.

The proposed battery systems will be capable of storing up to 330 MWh of electricity, equal to the two-hour power demand of around 110,000 customers, EnerSmart estimates. The facilities will discharge roughly 87,650 MWh per year via transmission lines owned by utility San Diego Gas and Electric (SDG&E). The stored electricity will be offered on California Independent System Operator's wholesale energy and ancillary services markets and may also be purchased in the form of resource adequacy agreements.

Yorktown Partners is EnerSmart’s private equity sponsor for the projects.

According to the statement, the deal is the first one for providing financing for fully merchant battery storage projects in the US.

(USD 1.0 = EUR 0.934)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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