The Energy Storage Report 2024

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

Broad Reach Power gets US$160 million financing for battery storage projects

LinkedIn
Twitter
Reddit
Facebook
Email

Broad Reach Power has joined the ranks of companies active in the US battery storage industry to announce financing raises in excess of US$100 million in the past few weeks.

The clean energy project developer and independent power producer (IPP) said yesterday that it has secured US$160 million towards a portfolio of 18 operating battery energy storage system (BESS) projects.

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

Of those 18, 17 are in Texas and one is in California, both markets where Broad Reach Power is already active. They total 390MWh capacity, are all front-of-meter grid-scale assets in development and are equipped with lithium-ion batteries, which the company said come from a “diverse pool of manufacturers”.

Big names in mainstream finance Deutsche Bank, via its New York branch, and MUFG acted as Coordinating Lead Arrangers and Joint Bookrunners on the financing round. Broad Reach Power’s senior VP for financing and M&A Nitin Gupta described it as a “marquee debt financing transaction in the battery storage sector”.

It comes shortly on the heels of system integrator FlexGen raising US$100 million investment led by Dutch energy trading company Vitol and another system integrator, Powin Energy, raising US$135 million. Interestingly, Broach Reach Power CFO Josh Prueher was a founder of FlexGen and formerly its CEO, while Broad Reach Power’s CTO, Doug Moorhead, was previously FlexGen’s CTO and president.

Other recent big moves in US energy storage financing include the acquisitions of front-of-the-meter energy storage developers East Point Energy and esVolta by Norwegian state-owned energy company Equinor and US sustainable infrastructure investment group Generate Capital respectively, both for undisclosed sums.

Energy-Storage.news first reported on Broad Reach Power in June 2020, as the company embarked on building a fleet of 10MW/10MWh battery energy storage system (BESS) projects in Texas. At the time, Broad Reach said it was also developing two 100MW/100MWh projects in the state to participate in the ERCOT wholesale market. It’s a fairly common strategy in the US to build projects of increasing size once roots are laid down in a particular state or regional transmission area’s wholesale market.

The company made good on that promise quickly, beginning construction of that 100MW pair in September of that year, before bringing them online just over a year later.

It expanded into California with a 100MWh project acquisition from Enel in November 2020, while supplier contracts it has publicly announced include a 118MWh supply deal from SYL Battery for its California project as well as a 900MWh deal with CATL for batteries for its Texas projects and a deal with Sungrow for power converters for the same Texas portfolio.

Broad Reach Power was valued at more than US$600 million late last year as asset management group Apollo’s affiliate Apollo Funds bought a 50% stake in the company. Apollo is also an investor into FlexGen.

Read Next

July 19, 2024
Peak Energy, a startup claiming to be the ‘first American venture to advance globally proven sodium-ion battery systems,’ has raised US$55 million in a Series A funding round.
July 19, 2024
Developer Harmony Energy is set to build a 100MW/200MWh battery energy storage system (BESS) project in France, the country’s largest.
July 19, 2024
Tesla has agreed to supply US solar PV and energy storage developer Intersect Power with 15.3GWh of its Megapack battery storage solution.
July 18, 2024
EDP Renewables North America has inaugurated the 200MW/40MW Scarlet I solar-plus-storage project in Fresno County, California.
Premium
July 18, 2024
Toronto, Ontario-headquartered Hydrostor is proposing to deploy one of its advanced compressed air energy storage (A-CAES) facilities in Greater Napanee, Ontario.

Most Popular

Email Newsletter