Broad Reach Power closes $160M financing round for Battery Storage projects in Texas, California

Aug. 1, 2022
Those projects altogether total about 390 MWh in generation capacity. They are front of the meter systems utilizing various lithium-ion technologies

Broad Reach Power’s latest round of project financing seems to indicate global investment enthusiasm for a high level of utility-scale battery storage in the Lone Star state.

The Houston-based energy storage group has successfully closed $160 million in project financing for 17 utility-scale battery systems in Texas and one in California. Those projects altogether total about 390 MWh in generation capacity.

They are front of the meter systems utilizing various lithium-ion technologies, according to Broad Reach Power.

Deutsche Bank AG, New York Branch and MUFG Bank Ltd. acted as Coordinating Lead Arrangers and Joint Bookrunners for the financing.

“Battery storage projects are an important pillar in ensuring a reliable and clean electric grid,” said Jeremy Eisman, head of Infrastructure & Energy Financing and Structuring at Deutsche Bank, in a statement. “We are happy to have collaborated with Broad Reach on this landmark battery storage financing and look forward to supporting their continued growth.”

Texas and California are leading the U.S. in utility-scale wind and solar energy installations, respectively. However, the intermittency of weather-based renewables calls out for backup or balancing power in the form of flexible generation and/or energy storage projects.

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The U.S. utility-scale energy storage sector achieved another milestone in 2021’s fourth quarter with record installation of 4,727 MWh in newly installed capacity. The full-year deployment was close to 3 GW/9.2 GWh, according to a report from Wood Mackenzie and the American Clean Power Association.

Texas was in the top grouping of states for those installations. State leaders have expressed pride in their  preeminent ranking with wind power, but hot summers and low wind are taxing the Texas grid during periods of historic peak demand.

Record Heat putting strain on Texas Grid resiliency

Broad Reach power owns a 21 GW portfolio of utility-scale battery storage and renewable power projects across the U.S. Earlier this year, the Houston company announced it was acquiring more than 900 MWh of battery systems from Contemporary Amperex Technology Co. (CATL).

Broad Reach plans to install those previously announced systems in six Texas projects next year.

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(Rod Walton, senior editor for EnergyTech, is a 14-year veteran of covering the energy industry both as a newspaper and trade journalist. He can be reached at [email protected]).

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