First Major Standalone Battery Storage Project in ISO-NE Closes Financing

Plus Power^™ has announced the close of construction and term financing for the first major utility-scale standalone battery storage system in construction on the New England grid, among other notable firsts for standalone storage in the region. The Cranberry Point facility, located in Carver, Massachusetts, will help stabilize the electric grid during the region’s increasing number of extreme weather events while helping to suppress volatile wholesale prices for ratepayers.

The 150 MW / 300 MWh Cranberry Point Energy Storage facility was among the first few standalone batteries ever to clear the Forward Capacity Auction in 2021 with the Independent System Operator of New England, or ISO-NE. With that award, Cranberry Point committed to provide capacity to the ISO-NE market through 2031. In the same auction, Plus Power’s 175 MW / 350 MWh Cross Town Energy Storage facility in Gorham, Maine also won a capacity payment commitment from ISO-NE through 2031.

First Citizens Bank and Nord LB acted as coordinating lead arrangers while Investec and Siemens Financial Services acted as joint lead arrangers. Investec is the administrative agent and U.S. Bank is the depositary bank. Sheppard Mullin acted as transaction counsel for Plus Power and Winston & Strawn acted as transaction counsel for the lenders. The $133 million financing includes a construction-to-term loan, bridge loan and letter of credit facility.

Cranberry Point and Cross Town are the largest battery energy storage projects in construction with planned operations in New England and will be online during Summer 2025. The Cross Town Energy Storage project commenced construction in April 2024 and is now the largest battery coming online in the region. The Cranberry Point facility, under construction since December 2023, is the second largest and represents approximately a third of the Commonwealth’s goal to deploy 1,000 MWh of battery energy storage by 2025.

The announcement marks the first major financing of a utility-scale project that will benefit from Clean Peak Energy Certificates (CPECs), a relatively new and innovative incentive program unique to Massachusetts. The Commonwealth launched the Clean Peak Standard in 2020 to incentivize the pairing of emissions-free generation with seasonal peak demand. In doing so, the Clean Peak program recognizes and remunerates batteries for their additional service to shift clean loads to replace polluting ‘peaking’ generation.

“Plus Power welcomes this critical support from First Citizens Bank, Nord LB, Investec, and Siemens Financial Services in accelerating standalone battery energy storage deployment into new markets,” said Josh Goldstein, chief financial officer at Plus Power. “Our capital partners continue to recognize the unique capabilities of standalone storage facilities and Plus Power’s leadership in developing and operating them. This financing demonstrates that standalone storage is capable of supporting a regional grid’s energy planning in a rapidly transitioning landscape.”

“The Cranberry Point Energy Storage facility is poised to improve grid stability and reliability while also ensuring the efficient use of clean power in the region,” said Mike Lorusso, who leads First Citizens Bank’s Energy Finance business. “We were pleased to serve as coordinating lead arranger for this important battery storage project on behalf of Plus Power, which continues to build its reputation as a leader in the battery storage sector.”

“Nord/LB is pleased to have acted as CLA for the successful closing of Plus Power’s latest landmark project. Battery storage projects are critical to the energy transition by providing clean, reliable power, especially in areas where carbon-emitting infrastructure is still prevalent like in New England,” says Sondra Martinez, Managing Director. “We look forward to continuing to support Plus Power’s ambitious growth in the industry.”

Plus Power, which leads the sector for developing, owning, and operating standalone energy storage, is now operating three battery storage facilities in Hawaii and Texas, including the largest operating standalone battery in Texas, Rodeo Ranch Energy Storage at nearly 300 MW / 600 MWh.  By summer 2024, Plus Power will have seven operating projects in Hawaii, Texas, and Arizona totaling 1,325 MW and 3,500 MWh. 

Plus Power has a rapidly growing portfolio of large-scale lithium-ion battery systems in more than 25 states and Canada and is currently executing on 10 gigawatts of battery storage capacity in transmission interconnection queues.