CIT’s power and energy business arranged $88 million in financing for a 173-megawatt standalone merchant battery storage facility in Texas. Siemens Financial Services participated as joint lead arranger in the financing.
The borrower, Wolf Tank Storage, is an affiliate of Aypa Power Development, which develops, owns and operates utility-scale energy storage and hybrid renewable energy projects that assist in the decarbonization of the electrical grid. Aypa Power is a portfolio company of Blackstone.
Located in Webb County, TX, the Wolf Tank Storage project will support the delivery of dependable electricity supply in the southern region of the Electric Reliability Council of Texas (ERCOT). Construction is already under way and completion is expected in Q1/23.
“Battery storage is an increasingly valuable component of the electricity generation mix, facilitating the integration of renewable power generation into the electric grid, ensuring dependable electricity flow,” Marc Atlas, CFO of Apya Power, said. “We appreciated CIT’s agility and expertise in arranging financing for the Wolf Tank Storage project.”
“Apya Power is a premier developer and operator of successful battery energy storage systems (BESS) across the United States,” Mike Lorusso, managing director and group head for the power and energy business at CIT, said. “We are pleased to finance this innovative project that will support renewable power generation and help sustain reliable power in the south Texas market.”