NineDot Energy, a developer of community-scale clean energy projects, closed a new $25 million revolving credit debt facility provided by NY Green Bank, a division of the New York State Energy Research and Development Authority.
The facility is the first purely energy storage transaction completed by NY Green Bank. For NineDot Energy, this financing will help fund its pipeline of battery storage projects being built in support of New York’s transition to cleaner and more sustainable energy sources and is consistent with NineDot’s goal of installing 400 megawatts (1,600 megawatt hours) by the end of 2026. For NY Green Bank, this transaction represents another step in its financial support of New York State’s Climate Leadership and Community Protection Act (CLCPA), which set out a goal to develop 3,000 megawatts of storage by 2030 (on the path to developing 6,000 megawatts of energy storage).
“We’re excited, proud and grateful that such a forward-looking institution saw the value in helping us achieve our vision,” David Arfin, CEO and co-founder of NineDot Energy, said. “We believe that climate change is the most critical issue of our time, and innovators like NineDot and NY Green Bank can work together to make a positive impact on the environment and the society in which we live and work. As we learned when we engaged with them previously, NY Green Bank is a smart, creative and diligent partner willing to work with young companies doing innovative and important things.”
NineDot Energy will use the proceeds of the revolving credit facility to finance the grid interconnection of energy storage projects in the New York City metro area. Fourteen of NineDot Energy’s battery storage sites will be covered by the facility on the initial draw, but that number is projected to grow to approximately 40 projects or more, each up to five megawatts, in the coming years.
In addition to making the local grid more robust and helping to integrate more clean energy onto the grid, a five-megawatt battery site can provide enough energy to power approximately 5,000 New York City households for four hours on a hot summer day, according to NineDot Energy. From a decarbonization perspective, using New York City’s Department of Buildings’ emissions methodology, if one of NineDot’s five-megawatt batteries operated for all of 2022, it would have reduced emissions in the community by approximately 420 tons of CO2e (carbon dioxide equivalents).
“We are thrilled to complete this innovative financing transaction with NineDot Energy in support of community-scale battery storage that is critical to New York’s decarbonization efforts,” Andrew Kessler, president of NY Green Bank, said. “We look forward to seeing these projects operating in support of a resilient future for New York City.”
With the new financing, NineDot Energy has secured more than $150 million to acquire, develop and operate battery storage sites across New York City, as well as Westchester County, NY, and Long Island, NY. NineDot’s first battery storage site is in the northeast Bronx, and many of its sites under construction will become operational in the next 12 months.
