The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Blackstone’s Aypa secures US$550 million debt and tax equity for 700MWh California and Texas projects


Aypa Power has secured a portfolio debt and tax equity financing package totalling US$550 million for two battery energy storage system (BESS) projects in California and Texas.

Aypa, part of the world’s largest private equity firm Blackstone, secured the debt from First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada and MUFG Bank, LTD. while U.S. Bancorp Impact Finance provided the tax equity investment.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The money will go towards the Cald project, a 100MW/400MWh standalone system in urban Los Angeles, and the Borden County project, a 150MW/300MWh project in Texas. Both are currently under construction and set to enter commercial operation in 2024.

The projects are likely to be those for which Aypa ordered BESS systems from the energy storage arm of Canadian Solar earlier this year: a 487MWh order for an unnamed California project in February and a 363MWh order for an unnamed project in Texas. The larger size is most likely because of the need to overbuild a project to account for energy losses from DC to AC conversion at the inverter.

BESS projects in California are mostly 4-hour systems in order to get the maximum payment under the grid operator CAISO’s Resource Adequacy framework, the basis of the business case for grid-scale storage there. Aypa’s Cald project has secured an agreement under it with utility San Diego Gas & Electric (SDG&E).

In Texas, BESS still mainly get revenues from the state’s large ancillary services market and so have not moved significantly past 1 or 2-hour duration yet. However, the ancillary service market is pegged to start to saturate next year while recent state-of-charge regulations from grid operator ERCOT mean virtually all new projects are at least 2-hour systems.

Aypa has been owned by Blackstone since 2020, before which it was called NRSTOR C&I when it focused on the commercial and industrial (C&I) segment, though it has since pivoted to the utility-scale market. Alongside being active in the US’ two biggest markets for storage (California and Texas) this year it acquired BESS projects in Indiana.

The size of the tax equity portion of the financing package was not disclosed but it represents the latest in a string of large tax equity investments into standalone storage seen in the past few months, including from developer-operators Spearmint Energy, Plus PowerSMT Energy and SUSIStrata Clean Energy and Eolian (earlier in the year).

22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
18 March 2025
Austin, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2025!

Read Next

May 24, 2024
The new tariffs on batteries from China will increase costs for US BESS integrators by 11-16%, consultancy Clean Energy Associates said, adding that new guidance around the domestic content ITC adder will make it easier to access.
May 24, 2024
Developer-operator Atlantic Green has enlisted system integrator Ameresco and clean energy manufacturer Envision Energy for a 300MW/624MWh BESS project in the UK.
May 23, 2024
The Kern County, California hybrid facility will have the capability to generate up to 2GW of solar power co-located with up to 2GW of battery energy storage system (BESS) capacity, spanning approximately 12,875 acres of privately owned land.
May 23, 2024
The Gore Street Energy Storage Fund’s international diversification helped it maintain average revenues across its portfolio, which spans the Great Britain (GB), Ireland, Germany and Texas, US.
May 22, 2024
We hear from developers, IPPs and upstream battery sources about the US’ decision to massively hike tariffs on batteries and battery components from China.

Most Popular

Email Newsletter