Latest news with #ERCOT
Yahoo
4 days ago
- Business
- Yahoo
Energy Storage Group Closes Financing for Texas BESS Project
A global developer of grid-scale energy storage projects said it has closed project financing and completed a 10-year offtake agreement for a battery energy storage system (BESS) installation in Texas. Energy Vault, with headquarters in California and offices in Virginia, Switzerland, and Australia, on July 24 said the $18-million project financing for the Cross Trails project is the latest in a series of moves by the company after equity investments in new "Own and Operate" assets. The Cross Trails BESS, located in Scurry County, entered full commercial operation in June. The project has a decade-long offtake deal with power marketer Gridmatic. The installation also expects to receive more than $12 million in federal investment tax credit-related funds this summer as part of a previously executed sale agreement. Energy Vault on Thursday said financing for Cross Trails "delivers an attractive levered IRR [internal rate of return] of ~15% while building on the successful execution of Energy Vault's 'Own & Operate' asset management strategy, following the successful close earlier this year of the $28-million project financing for the Calistoga Resiliency Center microgrid in California." Energy Vault said it will report a quarterly increase in cash of more than 20% during its second-quarter earnings call on August 7, after an increase of about 60% in the previous quarter. Project Serves ERCOT Market Cross Trails is a 57-MW/114-MWh BESS that will serve the Electric Reliability Council of Texas (ERCOT) region. Energy Vault said the installation was completed ahead of schedule, "successfully meeting all construction milestones through effective project management and close collaboration among engineering, procurement, and construction teams." The project is providing energy and ancillary services to support renewable energy production and improve grid resiliency in ERCOT's territory. The offtake agreement with Gridmatic is the "first physically settled revenue floor contract to be signed for a BESS in ERCOT," according to Energy Vault. The BESS leverages Energy Vault's fully integrated solution stack of hardware, software, and service offerings. Cross Trails also serves as the first deployment of Energy Vault's second-generation B-VAULT AC product, enabling Energy Vault to deliver the system quickly and at low cost while also providing higher levels of system availability in the ERCOT region. The system is equipped with Energy Vault's VaultOS Energy Management System to control, manage, and optimize the BESS operations. "The successful financing of our Cross Trails BESS project represents another significant milestone in executing our 'Own & Operate' strategy, delivering strong returns that will generate predictable, high margin and recurring revenue streams," said Robert Piconi, chairman and CEO of Energy Vault. "Following our recent Calistoga Resiliency Center project financing and the acquisition of the 125-MW/1-GWh Stoney Creek BESS in Australia, this latest financing close demonstrates our ability to attract premium financing partners while building a diversified portfolio of attractive energy storage assets across the globe. With an attractive mid-teen levered IRR and a 10-year offtake agreement in place, the Cross Trails BESS is another example of our commitment to creating long-term shareholder value through strategic energy storage asset ownership and operation in key growth markets." Agreement With Gridmatic "Energy Vault's proven expertise and ability to develop and deploy world-class reliable, and cost-effective energy storage solutions makes them a perfect partner for Gridmatic," said Max Wytock, Gridmatic's CEO, in a statement. "This BESS will deliver increased grid reliability and affordability for Texas residents as load growth continues to accelerate. We look forward to a strong partnership with Energy Vault for years to come." Today's announcement marks the second close of project financing for Energy Vault projects, coming on the heels of the successful close of $28 million in financing for the company's Calistoga Resiliency Center project in California. The financing also follows Energy Vault's announced acquisition of the 125-MW/1,000-MWh Stoney Creek BESS in the Australian market. Energy Vault on Thursday said the company has a "robust pipeline of projects in development" within the company's "Own & Operate" strategy, with a "long-term vision for generating predictable, recurring and high margin tolling revenue streams with the goal of delivering sustainable, long-term value to shareholders." —Darrell Proctor is a senior editor for POWER.
Business Wire
5 days ago
- Business
- Business Wire
Energy Vault Closes $18 Million Project Financing for 57 MW/114 MWh Cross Trails BESS Serving the Texas ERCOT Market
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Energy Vault Holdings Inc. (NYSE: NRGV) ('Energy Vault' or the 'Company'), a leader in sustainable, grid-scale energy storage solutions, today announced the successful close of $18 million in project financing for its Cross Trails battery energy storage system (BESS). The financing marks another milestone in the Company's execution of its 'Own & Operate' growth and asset management strategy, originally outlined during the May 2024 Investor and Analyst Day. In addition, the company expects to receive another $12+ million in Investment Tax Credit-related funds later this quarter via a previously signed ITC sale agreement. The 57 MW/114 MWh BESS was brought to commercial operation in June 2025, and is currently providing energy and ancillary services to meaningfully support renewable energy production and improve grid resiliency in the Electric Reliability Council of Texas (ERCOT) region. Energy Vault notably achieved mechanical completion of the Cross Trails BESS ahead of schedule, successfully meeting all construction milestones through effective project management and close collaboration among engineering, procurement, and construction teams. The project is supported by a 10-year offtake agreement with Gridmatic, which marked the first physically settled revenue floor contract to be signed for a BESS in ERCOT. The BESS leverages Energy Vault's fully integrated solution stack of hardware, software, and service offerings. Cross Trails also serves as the first deployment of Energy Vault's second-generation B-VAULT™ AC product, enabling Energy Vault to deliver the system quickly and at low cost while also providing higher levels of system availability in the ERCOT region. The system is equipped with Energy Vault's VaultOS™ Energy Management System to control, manage and optimize the BESS operations. "The successful financing of our Cross Trails BESS project represents another significant milestone in executing our 'Own & Operate' strategy, delivering strong returns that will generate predictable, high margin and recurring revenue streams," said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault. "Following our recent Calistoga Resiliency Center project financing and the acquisition of the 125 MW/1 GWh Stoney Creek BESS in Australia, this latest financing close demonstrates our ability to attract premium financing partners while building a diversified portfolio of attractive energy storage assets across the globe. With an attractive mid-teen levered IRR and a 10-year offtake agreement in place, the Cross Trails BESS is another example of our commitment to creating long-term shareholder value through strategic energy storage asset ownership and operation in key growth markets." Today's announcement marks the second close of project financing for Energy Vault projects, coming on the heels of the successful close of $28 million in financing for the Company's Calistoga Resiliency Center project in California. The financing also follows Energy Vault's announced acquisition of the 125 MW/1,000 MWh Stoney Creek BESS in the Australian market, being developed in alignment with the Company's global 'Own & Operate' strategy. Together, the advancement of these projects follows through on initiatives first presented during Energy Vault's May 2024 Investor and Analyst Day, demonstrating the Company's ability to execute on its strategic vision while maximizing capital efficiency in its 'Own & Operate' strategy. Energy Vault continues to pursue a robust pipeline of projects in development under the Company's 'Own & Operate' strategy and long-term vision for generating predictable, recurring and high margin tolling revenue streams with the goal of delivering sustainable, long-term value to shareholders. This milestone reflects significant proactive interest from strategic partners and investors given attractive IRR economics, positioning Energy Vault for continued growth in the rapidly evolving energy storage asset infrastructure market. About Energy Vault Energy Vault ® develops, deploys and operates utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary battery, gravity and green hydrogen energy storage technologies supporting a variety of customer use cases delivering safe and reliable energy system dispatching and optimization. Each storage solution is supported by the Company's technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault's innovative technology portfolio delivers customized short, long and multi-day/ultra-long duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Since 2024, Energy Vault has executed an 'Own & Operate' asset management strategy developed to generate predictable, recurring and high margin tolling revenue streams, positioning the Company for continued growth in the rapidly evolving energy storage asset infrastructure market. Please visit for more information. Forward-Looking Statements This press release includes forward-looking statements that reflect the Company's current views with respect to, among other things, the Company's operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as 'anticipate,' 'expect,' 'suggest,' 'plan,' 'believe,' 'intend,' 'project,' 'forecast,' 'estimates,' 'targets,' 'projections,' 'should,' 'could,' 'would,' 'may,' 'might,' 'will' and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans, and assumptions, which we have made in light of our experience in our industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. These forward-looking statements are based on our beliefs, assumptions, and expectations of future performance, taking into account the information currently available to us. These forward-looking statements are only predictions based upon our current expectations and projections about future events. These forward-looking statements involve significant risks and uncertainties that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the failure to execute definitive agreements or close previously contracted tax credit transfers, changes in our strategy, expansion plans, customer opportunities, future operations, future financial position, estimated revenues and losses, projected costs, prospects and plans; the quickly changing international tariffs applicable to our imports and exports; the uncertainly of our awards, bookings and backlogs and developed pipeline equating to future revenue; the lack of assurance that non-binding letters of intent and other indication of interest can result in binding orders or sales; the timing of permits; the possibility of our products to be or alleged to be defective or experience other failures; the implementation, market acceptance and success of our business model and growth strategy; our ability to develop and maintain our brand and reputation; developments and projections relating to our business, our competitors, and industry; the ability of our suppliers to deliver necessary components or raw materials for construction of our energy storage systems in a timely manner; the impact of health epidemics, on our business and the actions we may take in response thereto; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; expectations regarding the time during which we will be an emerging growth company under the JOBS Act; our future capital requirements and sources and uses of cash; the international nature of our operations and the impact of war or other hostilities on our business and global markets; our ability to obtain funding for our operations and future growth; our business, expansion plans and opportunities and other important factors discussed under the caption 'Risk Factors' in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 31 2025, as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC's website at New risks emerge from time to time, and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements.
Reuters
10-07-2025
- Business
- Reuters
Trump calls wind, solar bad for power grid. Texas shows otherwise
July 10, (Reuters) - President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy. But reliability has improved dramatically in the U.S. grid with the most renewable energy – in Texas - and electricity prices there are below the national average, according to regulatory filings and price data reviewed by Reuters. At the same time, some grids that rely primarily on fossil fuel generation have experienced reliability issues and surging prices. The Electric Reliability Council of Texas (ERCOT), the state's main grid operator, forecasts only a 0.30% chance of rolling blackouts during peak energy demand in August, according to its June 6 reliability assessment. That is a vast improvement from the 12% chance it predicted for August 2024. Electricity prices for Texas residential customers and businesses are about 10 cents per kilowatt hour, 24% below the national average, according to the latest monthly report by the U.S. Energy Information Administration. "ERCOT has done a good job of defining the products needed for energy and reliability," said Joshua Rhodes, a research scientist at the University of Texas in Austin. "It could be an example for other grids in how to create reliability at a low cost." The Texas grid's performance rebuts the assumptions driving Trump's sweeping tax-and-spending bill that Congress passed last week, which will end subsidies that boosted adoption of solar, wind and other clean energy technologies. U.S. Energy Secretary Chris Wright cheered the cuts in a social media post saying the bill "will help end wasteful subsidies and deliver more reliable energy for the American people!" On Monday Trump signed his latest executive order directing federal agencies to strengthen provisions in the One Big Beautiful Bill that repeal or modify tax credits for solar and wind projects. Trump called renewable energy unreliable and expensive. He said renewables displaced more dependable sources, relied on foreign-controlled supply chains and harmed the environment. Solar and wind power only work when the sun is shining or the wind is blowing. This intermittency can risk significant shortfalls during periods of high demand. Indeed, the Texas power grid has had major failures over the years, but not all were related to renewables. In February 2021, natural gas pipelines and well heads froze during a freak cold snap, interrupting supplies to gas-fired generators and causing blackouts that left millions in Texas without power for days. Texas has invested in large-scale battery storage facilities for surplus power from wind, solar or other generators. These release the power when it is needed, and they have helped to sharply reduce the chances of blackouts this year, according to ERCOT's resource adequacy reports reviewed by Reuters. Since summer 2024, ERCOT said it has added nearly 5 gigawatts of battery storage, lifting total capacity above 8 gigawatts. Another 174 gigawatts of storage await connection over the next five years, according to ERCOT. ERCOT declined to comment on Trump's assertions that renewables destabilize the grid. "Increasing capacity from solar and battery storage have been a winning combo for the Texas grid over the past two years," said Garrett Golding, an assistant vice president of energy programs at the Federal Reserve Bank of Dallas. "(It) can be a model for other states with similar climates, but I doubt it applies universally." The White House did not return a message seeking comment. Grids that depend on fossil fuels are not immune to reliability and price issues. The PJM Interconnection, the largest U.S. regional grid, relies heavily on fossil fuels and its electricity prices are soaring while reliability is falling. "The grid is a rusted old pickup truck and we're adding multiple pressures onto it," said Tom Bullock, executive director of The Citizens Utility Board of Ohio, a consumer watchdog group. In Ohio, a key market in PJM's territory, state regulators expect electricity prices to increase more than 20% this year. Last year, natural gas and coal plants accounted for nearly 60% of PJM's electricity generation output. Wind and solar were about 6%, according to PJM. Bullock and other consumer advocates said Trump's rejection of renewables could exacerbate electricity price inflation instead of controlling it, particularly as power demand escalates from data centers and electric vehicles. A U.S. Department of Energy analysis issued this week estimated substantial electricity blackouts in PJM's territory in the next five years, absent a massive amount of new generation. In a worst-case scenario, PJM could have more than 1,000 annual hours when electricity production does not meet demand, the DOE report said. PJM declined to comment on the DOE report. ERCOT's total was just 149 hours in the DOE's worst-case analysis. 'The report recognizes that ERCOT has improved in addressing grid vulnerabilities,' DOE spokesperson Ben Dietderich said. Frank Rambo, executive director of Horizon Climate Initiative, a non-profit that supports cutting fossil fuel generation, said he fears Trump's policies will upend years of planning by utilities, grid operators and state commissions seeking to add renewable energy sources. "It's got destabilization written all over it," Rambo said.
Zawya
10-07-2025
- Business
- Zawya
Trump calls wind, solar bad for power grid. Texas shows otherwise
President Donald Trump claims that rapid adoption of solar and wind power has made U.S. electricity unstable and expensive, justifying his bid to end most subsidies for renewable energy. But reliability has improved dramatically in the U.S. grid with the most renewable energy – in Texas - and electricity prices there are below the national average, according to regulatory filings and price data reviewed by Reuters. At the same time, some grids that rely primarily on fossil fuel generation have experienced reliability issues and surging prices. The Electric Reliability Council of Texas (ERCOT), the state's main grid operator, forecasts only a 0.30% chance of rolling blackouts during peak energy demand in August, according to its June 6 reliability assessment. That is a vast improvement from the 12% chance it predicted for August 2024. Electricity prices for Texas residential customers and businesses are about 10 cents per kilowatt hour, 24% below the national average, according to the latest monthly report by the U.S. Energy Information Administration. "ERCOT has done a good job of defining the products needed for energy and reliability," said Joshua Rhodes, a research scientist at the University of Texas in Austin. "It could be an example for other grids in how to create reliability at a low cost." The Texas grid's performance rebuts the assumptions driving Trump's sweeping tax-and-spending bill that Congress passed last week, which will end subsidies that boosted adoption of solar, wind and other clean energy technologies. U.S. Energy Secretary Chris Wright cheered the cuts in a social media post saying the bill "will help end wasteful subsidies and deliver more reliable energy for the American people!" On Monday Trump signed his latest executive order directing federal agencies to strengthen provisions in the One Big Beautiful Bill that repeal or modify tax credits for solar and wind projects. Trump called renewable energy unreliable and expensive. He said renewables displaced more dependable sources, relied on foreign-controlled supply chains and harmed the environment. Solar and wind power only work when the sun is shining or the wind is blowing. This intermittency can risk significant shortfalls during periods of high demand. Indeed, the Texas power grid has had major failures over the years, but not all were related to renewables. In February 2021, natural gas pipelines and well heads froze during a freak cold snap, interrupting supplies to gas-fired generators and causing blackouts that left millions in Texas without power for days. Texas has invested in large-scale battery storage facilities for surplus power from wind, solar or other generators. These release the power when it is needed, and they have helped to sharply reduce the chances of blackouts this year, according to ERCOT's resource adequacy reports reviewed by Reuters. Since summer 2024, ERCOT said it has added nearly 5 gigawatts of battery storage, lifting total capacity above 8 gigawatts. Another 174 gigawatts of storage await connection over the next five years, according to ERCOT. ERCOT declined to comment on Trump's assertions that renewables destabilize the grid. "Increasing capacity from solar and battery storage have been a winning combo for the Texas grid over the past two years," said Garrett Golding, an assistant vice president of energy programs at the Federal Reserve Bank of Dallas. "(It) can be a model for other states with similar climates, but I doubt it applies universally." The White House did not return a message seeking comment. BETTER THAN OTHERS Grids that depend on fossil fuels are not immune to reliability and price issues. The PJM Interconnection, the largest U.S. regional grid, relies heavily on fossil fuels and its electricity prices are soaring while reliability is falling. "The grid is a rusted old pickup truck and we're adding multiple pressures onto it," said Tom Bullock, executive director of The Citizens Utility Board of Ohio, a consumer watchdog group. In Ohio, a key market in PJM's territory, state regulators expect electricity prices to increase more than 20% this year. Last year, natural gas and coal plants accounted for nearly 60% of PJM's electricity generation output. Wind and solar were about 6%, according to PJM. Bullock and other consumer advocates said Trump's rejection of renewables could exacerbate electricity price inflation instead of controlling it, particularly as power demand escalates from data centers and electric vehicles. A U.S. Department of Energy analysis issued this week estimated substantial electricity blackouts in PJM's territory in the next five years, absent a massive amount of new generation. In a worst-case scenario, PJM could have more than 1,000 annual hours when electricity production does not meet demand, the DOE report said. PJM declined to comment on the DOE report. ERCOT's total was just 149 hours in the DOE's worst-case analysis. 'The report recognizes that ERCOT has improved in addressing grid vulnerabilities,' DOE spokesperson Ben Dietderich said. Frank Rambo, executive director of Horizon Climate Initiative, a non-profit that supports cutting fossil fuel generation, said he fears Trump's policies will upend years of planning by utilities, grid operators and state commissions seeking to add renewable energy sources. "It's got destabilization written all over it," Rambo said.
Yahoo
09-07-2025
- Business
- Yahoo
Lydian Energy Secures $233M in Project Financing to Advance Battery Storage Projects Across Texas
ING and KeyBank provide Lydian's first institutional financing for Pintail, Crane, and Headcamp BESS projects under Excelsior Energy Capital's Fund II WASHINGTON & HOUSTON, July 09, 2025--(BUSINESS WIRE)--Lydian Energy, an independent power producer specializing in the development, construction, and operation of utility-scale solar and battery energy storage projects across North America, today announced the successful financial close of its first institutional project financing totaling $233 million. The financing, backed by ING and KeyBank, supports three battery energy storage system (BESS) projects in Texas' fast-growing ERCOT power market. ING served as the lender for the Pintail and Crane projects, located in San Patricio and Crane Counties, Texas, respectively. The two systems, each sized at 200 MW/400 MWh, represent a combined investment of approximately $139 million. KeyBank provided a $94 million financing package for Headcamp, a 150 MW/300 MWh project in Pecos County. KeyBanc Capital Markets also structured the financing package for Headcamp. All three projects are developed under Excelsior Energy Capital's Fund II, which recently closed at more than $1 billion, and advance Lydian's strategy to deliver reliable, affordable renewable energy that strengthens grid performance in key power markets, such as Texas. The facilities are currently under construction and expected to be placed in service in Q4 2025. "This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve," said Emre Ersenkal, CEO at Lydian Energy. "We are happy to have the support of ING and KeyBank, which recognize both the value of battery storage in today's grid and the capabilities of our development and delivery platform. We are proud to partner with these leading financial institutions to help deliver the next generation of clean and reliable power in Texas," said Basilio Guerrero, CFO at Lydian Energy. The commitments of ING and KeyBank underscore growing institutional confidence in battery storage as a strategic asset class leading the energy transition. "Our support of Lydian's portfolio reflects ING's focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power," said Sven Wellock, Managing Director and Head of Energy – Renewables & Power at ING. "Battery storage plays a central role in supporting grid resilience, and we're pleased to back a platform with strong fundamentals and a clear execution path." "Lydian Energy's development of Headcamp reflects the type of forward-looking energy infrastructure we aim to support through strategic financing," said Tyler Nielsen, Managing Director, Utilities Power and Renewables Group at KeyBanc Capital Markets. "Our team is thrilled to support Excelsior Energy Capital as they continue to deliver strategic, future-ready investments and projects that are increasingly vital as energy demand and system complexity continue to rise." The tax credit bridge financings from ING and KeyBank are being complemented by co-investment capital from Excelsior's Fund II limited partners. Lydian is actively pursuing additional financing for a broader pipeline of projects expected to start construction later this year. "These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets," said Anne Marie Denman, Co-Founding Partner at Excelsior Energy Capital and Chair of the Board at Lydian Energy. "We're proud to stand behind Lydian's talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy." Lydian's current portfolio includes 20 solar and storage projects totaling 4.7 GW of capacity. The company continues to work alongside banking, regulatory, and community stakeholders to deliver scalable infrastructure aligned with regional needs and policy objectives. About Lydian Energy Lydian Energy, based in Washington, D.C., is an independent power producer specializing in the development, construction, and operation of utility-scale solar and battery energy storage projects. With the backing of Excelsior Energy Capital, Lydian's experienced team of renewable energy professionals focuses on developing high-potential mid- to late-stage renewable energy assets across North America. For more information, please visit Follow Lydian Energy on LinkedIn. About Excelsior Energy Capital Excelsior Energy Capital is a renewable energy infrastructure fund focused on middle-market investments in wind, solar and battery storage plants, and businesses across North America. The highly specialized team brings over 100 years of combined experience and a comprehensive set of strategic, financial, legal and operational expertise; making Excelsior Energy Capital a valuable partner for developers and operators, and a trusted manager for investors. Based in Minneapolis, Minnesota, the firm was founded in 2017 with two active funds totaling over $1.5 billion of equity capital. For more information, visit View source version on Contacts Media Contact Adam Redlingaredling@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
