Intersection Power Secures $837M for 3 New Battery Storage Plants in Texas

Intersect Power has successfully closed two major transactions, securing a total of $837 million in financing commitments for the development and operation of three standalone Battery Energy Storage Systems (BESS) in Texas. This significant financial backing involves portfolio-level construction debt, tax equity, and term debt financing in collaboration with top industry partners.

Three Projects to Launch in 2024

The projects, named Lumina I, Lumina II, and Radian, are scheduled to become operational in 2024. Each of these facilities will house 86 Megapacks, which are Tesla's advanced battery energy storage systems. The Lumina II project in Scurry County and the Radian project will utilize Tesla's Autobidder, a real-time trading platform. Remarkably, these sites are set to transition from initial concept to full commission in less than a year. Each project will offer 320 MWh of battery storage capacity with a two-hour discharge duration.

Financing and Partnerships

The financial arrangements include Morgan Stanley providing tax equity, while HPS Investment Partners will manage construction debt and term debt investments. Deutsche Bank plays a critical role by partnering in the construction debt facility and offering operational letters of credit for the projects. These initiatives qualify for Investment Tax Credits as stipulated under the Inflation Reduction Act, enhancing their financial viability and attractiveness to investors.