Lydian Energy has successfully secured $233 million to finance three battery storage projects in Texas, which together will provide a total capacity of 550 megawatts (MW).
ING is providing funding for the Pintail and Crane projects located in San Patricio and Crane Counties, Texas. According to Lydian, these projects consist of 200 MW/400 megawatt-hours (MWh) systems, amounting to an investment of approximately $139 million. Lydian, a company based in Washington, D.C., specializes in solar and battery storage and is backed by Excelsior Energy Capital.
KeyBank has also contributed a $94 million financing package for the Headcamp project, a 150 MW/300 MWh facility located in Pecos County. KeyBanc Capital Markets played a role in structuring this financing.
All three facilities are currently under construction within the Electric Reliability Council of Texas (ERCOT) area. Lydian anticipates launching these projects by the end of the fourth quarter.
These developments are part of Excelsior Energy Capital’s Fund II, which recently exceeded a billion dollars in funding. The support from ING and KeyBank highlights a growing trust in battery storage as an important asset class.
“More than just financial backing, these financings demonstrate the rising demand for dependable energy infrastructure in America’s growing markets,” noted Anne Marie Denman, co-founding partner at Excelsior Energy Capital.
Currently, ERCOT is projecting that by September, it will have roughly 12,863 MW of energy storage capacity in its system, with an additional 998 MW expected for grid integration approval. The total storage capacity rose significantly in the past year, from about 4,650 MW in 2023 to around 10,000 MW by the end of last year.