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.
The transactions cover portfolio-level construction debt, tax equity and term debt financing with the company’s partners.
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.
The company says each site will provide 320 MWh of battery storage with a two-hour duration.
“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.”
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.
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.
