The Energy Storage Report 2024

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

Key Capture Energy sells investment tax credits for 120MW of New York and Texas BESS


US battery storage developer Key Capture Energy has sold investment tax credits (ITCs) for battery energy storage system (BESS) projects in New York and Texas, using new transferability rules.

The transaction comprises a transfer of ITCs from two operating projects in Texas – KCE TX 19 and KCE TX 21 in Williamson County – totalling 100 MW and a project in New York, the 20MW KCE NY 6 in Erie County, pictured above. The deal was concluded with Enhanced Capital, an impact investment firm.

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 Inflation Reduction Act (IRA) introduced both the ITC for standalone energy storage as well as a new way to sell ITCs to other investors through so-called ‘transferability’. Before the IRA, ITCs could only be used by setting up complicated tax equity joint ventures to invest directly in the project.

Transferability enables developers to more straightforwardly sell the ITCs associated with a clean energy project to another company in exchange for funds immediately, with an online portal created to track every project to avoid duplication.

This in theory should open up the market to investors less familiar with tax equity, since the tax equity joint venture entities were costly and complicated to set up. That should mean more capital available for the clean energy sector.

Ed Rossier, Enhanced Capital’s managing director and head of climate finance, commented on the deal with Key Capture Energy (KCE): “Tax credit financing for large-scale energy storage projects supports a more reliable and resilient grid and facilitates broader adoption of renewable energy generation across our country.”

Recent ITC transfer deals for large-scale energy storage include two projects in California, owned by W Power and Wellhead Electric, and Arevon.

CRC-IB was financial advisor to KCE for the deal KCE was represented by Stoel Rives LLP and Enhanced Capital by Greenberg Traurig, LLP.

Jeff Bishop, co-founder and former CEO (as of December) of Key Capture, contributed to our Year in Review series of articles looking back on 2023 and ahead to 2024, published this week, also discussing the Midwest market in an earlier interview (Premium access).’ publisher Solar Media will host the 5th Energy Storage Summit USA, 19-20 March 2024 in Austin, Texas. Featuring a packed programme of panels, presentations and fireside chats from industry leaders focusing on accelerating the market for energy storage across the country. For more information, go to the website.

Read Next

March 1, 2024
London Stock Exchange-listed battery storage investment firm Harmony Energy Income Trust (HEIT) has predicted that it can generate “attractive returns” despite the ongoing woes in battery energy storage revenues in the GB market.
February 29, 2024
EDF Renewables North America has signed a PPA with California utility Southern California Public Power Authority (SCPPA) for part of the offtake of a solar-plus-storage project in neighbouring Nevada with a 780MWh BESS.
February 29, 2024
We hear from industry sources about why we’ve seen a flurry of investors acquiring energy storage developer-operators in the UK and Germany, Europe’s two largest markets by BESS deployments.
February 28, 2024
Energy Storage Canada (ESC) is “thrilled” that the Canada Infrastructure Bank’s (CIB’s) investment into a large-scale battery storage portfolio will enable Indigenous communities to hold a stake in it.  
February 28, 2024
Spain and the Netherlands have launched subsidy schemes to support domestic manufacturing of clean energy technologies, including batteries and solar PV modules.

Most Popular

Email Newsletter