Aypa Power finances construction of a new 400 MWh battery in Texas

Blackstone-owned Canadian energy storage and renewables developer Aypa Power has announced a further boost for the Texas grid, with news of a relatively complex financing agreement being secured for its next battery project.

Aypa Power announced in a press release that it has secured $190 million in financing for its new battery project in Fort Bend County near Houston in Texas, USA, supplying the Electric Reliability Council of Texas or ERCOT.

The Bypass battery energy storage system (BESS) project will be a two-hour 200MW/400 MWh facility, with a “long-term” offtake agreement already secured, said Aypa.

The financing package includes a $68 million construction-to-term Loan and a $91 million tax equity bridge loan (TEBL), bringing total construction financing to $159 million. Additionally, $31 million in letters of credit were issued, with $26 million designated for project-specific needs. Morgan Stanley Renewables committed $94 million in tax equity financing through a hybrid partnership flip structure.

The financing was provided by SMBC, serving as administrative agent and green loan coordinator, and Santander as coordinating lead arrangers, with Siemens Financial Services as joint lead arranger.

Aypa Power Finance executive vice-president Bill Nguyen stated: “This financing milestone highlights Aypa Power’s ability to deliver projects that set new standards in the market. As one of the first fully contracted energy storage projects in ERCOT, Bypass BESS demonstrates how innovative financing structures and strong partnerships can deliver critical infrastructure to meet the region’s growing power needs.”

Morgan Stanley Renewable energy investments head Jorge Iragorri stated: “We are excited to partner with Aypa Power and Blackstone on this innovative ERCOT BESS project and continue building grid infrastructure for the growing electrification needs of the US.”

Aypa Power didn’t indicate when the new facility was expected to be operational.

Aypa buildout

Previously, Aypa Power secured $323m in financing for its 150 MW/600 MWh Kuna project in Idaho, US, the state’s largest battery energy storage project, expected to be operational by mid-2025.

It also obtained a $398 million financing package for the Pediment Battery Energy Storage System (BESS), a 250 MW / 1,000 MWh project located in Mesa, Arizona.