Plus Power Raises Additional $1.8B to Help Incorporate Renewables and Stabilize Power Grid

Plus Power LLC announced completion of  $1.8 billion  in new financing for standalone battery storage, including the largest single such project financing to date, to help stabilize the US electrical grid while incorporating more solar and wind energy.
Plus Power Raises Additional $1.8B to Help Incorporate Renewables and Stabilize Power Grid

The company will use the capital to fund the construction and operations of five projects. Plus Power has a rapidly growing portfolio of large-scale lithium-ion battery systems in more than 25 states and  Canada , and the company is executing on 10 gigawatts of interconnection capacity now in transmission interconnection queues.

The announcement includes Plus Power's  $707 million  financing for the 250 megawatt Sierra Estrella Energy Storage facility in  Avondale, Arizona , west of  Phoenix . It will be the largest to date for a standalone energy storage project. The 11-acre footprint of the Sierra Estrella project allows the project to be sited without attached generation, closer to load.

The announced transactions are also supporting construction of 700 megawatts of batteries on the ERCOT grid in  Texas . Three new Plus Power battery plants will begin operation next summer to handle increased demand amid increasingly extreme temperatures and numerous days of scarce operating reserves on the power grid.

The financing commitments cover five projects totaling 1,040 megawatts of capacity (or 2,760 megawatt-hours). The transactions will support both construction and operations of the portfolio and include construction financing, term financing, letters of credit, and tax equity investments, in partnership with 11 leading industry lenders and investors.

The size and breadth of the financings by leading institutions – and the projects' geographic and revenue structure diversity – highlights the variety of services and value that well-sited standalone energy storage can offer power markets.

"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 , chief financial officer of Plus Power.

"This capital will support the ongoing buildout of the largest and most diverse portfolio of standalone storage projects in the US The scale highlights our first-mover advantage in bringing high-quality projects to market as well as the tremendous work by our fantastic team." 

Goldstein added, "We deeply value our financing partners who support the construction and operation of our wide portfolio across the US, enabling decarbonization and the transition to a more efficient grid."

The Sierra Estrella project was one of two Plus Power landmark project financings in  Arizona  that totaled  $903 million  and 340 MW / 1,360 MWh. Both projects have 20-year energy storage services agreements with Salt River Project and are under construction, aiming to be online by the second quarter of 2024 in time for another summer of anticipated record peak demand.

Norddeutsche Landesbank and Société Générale acted as coordinating lead arrangers while Mizuho, US Bank, Bank of America, CoBank, and Siemens Financial Services, Inc. were joint lead arrangers. The financings include:

  • $202 million  of tax equity for the 250 MW/1,000 MWh Sierra Estrella Energy Storage facility in  Avondale  from Bank of America, coupled with a  $505 million  construction, term loan, and letter of credit facility.
  • $196 million  construction, term loan and letter of credit facility for the 90 MW/360 MWh Superstition Energy Storage project in  Gilbert , southeast of  Phoenix .
PHOTO: Construction underway at the Sierra Estrella Energy Storage project in Avondale, Arizona, which just received the largest financing package for a single standalone energy storage project, worth $707 million. (Image: Plus Power)


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