Utility-scale battery energy storage projects operator esVolta has finalised a preferred equity transaction facilitated by Captona, an energy transition investment firm.
The capital, combined with the sale of input tax credits transfer proceeds, will provide a total of $243m investment.
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This will develop three energy storage projects, Anole, Desert Willow and Burksol, in the Electric Reliability Council of Texas (ERCOT) market, accounting for approximately 1 gigawatt hour (GWh) of capacity.
These projects are currently under construction and will become operational in the first half of 2025.
esVolta CEO Randolph Mann stated: “Having such a well-known and established company partner with esVolta is a testament to the team’s experience, ability and track record in bringing high-value, safe and reliable battery energy storage to the Texas grid.”
In 2024, esVolta raised almost $900m, including $243m funding, for its energy storage operations across key US states.
esVolta was represented by Morgan Lewis & Bockius in the transaction, while Captona and its equity partner were represented by Kirkland & Ellis.
esVolta chief financial officer Justin Johns stated: “esVolta is leading the transformation of the electric grid. Focused on sustainability and innovation, we appreciate Captona’s partnership in this transaction, enabling us to continue delivering value for utilities, energy users and investors alike.”
esVolta has been developing and operating battery energy storage systems since 2017.
With an active pipeline of more than 30 projects totalling almost 25GWh of capacity, these projects will enhance power quality, reliability and the transition away from fossil fuels for a stable power supply for the US as energy demand grows.
