Intersect Power Secures $837 Million in Financing for Three Texas BESS Projects

Construction at the Lumina II BESS project in Scurry County, Texas. (Photo: Business Wire)

Intersect Power Secures $837 Million in Financing for Three Texas BESS Projects

Intersect Power has closed on two separate transactions totaling $837 million in financing commitments for the construction and operation of three standalone battery energy storage systems (BESS) in Texas.

Transactions and Partnerships

The transactions cover portfolio-level construction debt, tax equity and term debt financing with the company’s partners.

BESS Projects and Operations

The Lumina I, Lumina II and Radian BESS are expected to be operational this year, with each project comprising 86 Megapacks, Tesla’s battery energy storage system. Lumina II and Radian will be operated by Autobidder, Tesla’s trading platform.

Capacity and Duration

The company says each site will provide 320 MWh of battery storage with a two-hour duration.

CEO Comments

“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,” says Sheldon Kimber, CEO and founder of Intersect Power.

“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. This stability will be critical as we expect to triple the size of our portfolio over the next three years.”

Financing Partners

Morgan Stanley is providing tax equity, and funds and accounts managed by HPS Investment Partners will be making construction debt and term debt investments. Deutsche Bank is partnering in the construction debt facility and providing the operational letters of credit to the projects.

Counsel Representation

Orrick, Herrington & Sutcliffe represented Intersect Power as lead counsel on all transactions, with CCA Capital advising the company on the tax equity transactions. Willkie Farr & Gallagher served as counsel to Morgan Stanley Renewables. Skadden, Arps, Slate, Meagher & Flom served as counsel to HPS and Deutsche Bank.

Conclusion

Intersect Power’s latest financing commitment demonstrates the company’s commitment to expanding its renewable energy portfolio and energy storage capabilities. The projects are expected to provide stable and consistent financial performance, benefiting from increasing market volatility and periods of high prices.

FAQs

* What is the total financing commitment for the three Texas BESS projects?
+ $837 million
* What is the capacity of each BESS site?
+ 320 MWh of battery storage with a two-hour duration
* Who will operate the Lumina II and Radian BESS sites?
+ Autobidder, Tesla’s trading platform
* Who are the financing partners for the projects?
+ Morgan Stanley, HPS Investment Partners, and Deutsche Bank