Plus Power has completed $1.8 billion in financing that will fund five standalone battery storage projects, supporting the United States electrical grid as it incorporates more wind and solar energy.
The five projects will total more than 1 gigawatt hour of energy storage capacity, and funding will support construction and operations at the new sites. One of the funded projects is the 250-megawatt Sierra Estrella Energy Storage facility in Avondale, Arizona, which represents the largest standalone energy project financing package to date with $707 million of the financing used for the 11-acre project.
Other projects supported by the financing include new battery storage plants and 700 MW of battery capacity for Texas’ ERCOT grid, one in Hidalgo County, Arizona, along the Mexican border, and one in Gilbert, Arizona.
"Over the last year, Plus Power has raised an unparalleled amount of capital for standalone storage projects from a wide range of leading energy project finance banks and investors," said Josh Goldstein, CFO of Plus Power. "This capital will support the ongoing buildout of the largest and most diverse portfolio of standalone storage projects in the U.S."
Deutsche Bank and First Citizens Bank were coordinating lead arrangers of financing on the Texas projects, while Norddeutsche Landesbank and Société Générale were lead arrangers for the projects in Arizona.
Standalone energy storage is especially useful for enhancing grid stability as backup power during peak use, storms, or unexpected demand. Plus Power’s energy storage sites are currently located across more than 25 U.S. states and Canadian provinces, where they work to relieve grid congestion and help smooth the transition to a renewable-powered electric grid.
Deloitte recently released a study about the importance of energy storage growth as the grid integrates renewables, finding how energy storage may contribute to cost savings and have a positive impact on the environment. The company’s report explains how energy storage works to avoid wasting energy generated from renewable sources and should be strategically located along the grid to balance energy supply and demand.
Grid-scale energy storage, according to the International Energy Association, is a crucial piece of the energy transition and will need to grow significantly to get on track with the Net Zero by 2050 Scenario.
