Intersect Power has secured financing commitments totalling $837m for the construction and operation of three standalone battery energy storage systems (BESS) in Texas.
The company secured funding through two distinct transactions to fulfill portfolio-level construction debt, tax equity and term debt financing commitments with leading industry partners.
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Morgan Stanley has been chosen to provide tax equity for the projects, while HPS Investment Partners will make substantial construction debt and term debt investments.
Deutsche Bank is contributing to the construction debt facility and will provide the necessary operational letters of credit.
Morgan Stanley managing director and renewable energy investments head Jorge Iragorri stated: “Morgan Stanley is proud to partner again with Intersect Power, a clean energy company bringing innovative and scalable low-carbon solutions to its customers in global energy markets.
“These standalone batteries are much-needed infrastructure that will increase grid reliability and improve energy security as the US transitions to a low-carbon economy.”
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By GlobalDataIntersect Power has noted that the three BESS projects, Lumina I, Lumina II and Radian, are on track to become operational in 2024.
Each of the BESS facilities will be equipped with 86 Megapacks from Tesla. Lumina II and Radian will utilise Autobidder, Tesla’s advanced real-time trading platform, for their operations.
Intersect Power has emphasised the rapid development timeline, with the three sites transitioning from concept to commissioned in under one year.
Each site will provide 320 megawatt hours of battery storage with a two-hour duration, significantly enhancing the flexibility of Intersect’s Texas operating fleet, which already offers 1.2 gigawatts peak of solar power complemented by 1 gigawatt hour of battery storage.
Intersect Power founder and CEO Sheldon Kimber said: “Batteries will be a vital part of the energy transition and are the perfect complement to the billions of dollars of solar generation that we are building in California and Texas.
“These assets should allow us to provide more consistent financial performance from a diversified fleet of renewable generation and storage, benefiting from increasing market volatility and periods of high prices while protecting us from periods of low market prices.”
In January 2024, Intersect Power began operations at the Lumina Solar project in Scurry County, Texas.
Featuring First Solar’s photovoltaic panels, the solar project has a capacity of 828 megawatts peak and 640 megawatts alternating current.
