Intersect Power has successfully secured $837 million in financing commitments for the development and operation of three standalone Battery Energy Storage Systems (BESS) in Texas. The transactions include portfolio-level construction debt, tax equity, and term debt financing with top industry partners.
The three BESS projects – Lumina I, Lumina II, and Radian – are expected to be fully operational by 2024. Each project will feature 86 Megapacks from Tesla’s battery energy storage system lineup. Additionally, Autobidder – Tesla’s real-time trading platform – will operate Lumina II (located in Scurry County) and Radian. These projects have a quick turnaround time of less than 12 months from concept to commissioning and will collectively provide a total of 320 MWh of battery storage with a two-hour duration.
Morgan Stanley has been chosen as the provider for tax equity investments while funds managed by HPS Investment Partners will be investing in construction debt and term debt. Deutsche Bank is also involved as they are partnering with the construction debt facility while providing operational letters of credit for these projects which qualify for Investment Tax Credits under the Inflation Reduction Act.
This news was originally published on Connect CRE.
