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Leyline JV provides financing support for 400MW / 1,400MWh of Virginia and Texas battery projects

By Andy Colthorpe
Texas Waves (pictured), commissioned in 2018 was one of the early deployments in the ERCOT market which has rapidly gone on to embrace energy storage. Image: Wärtsilä.

Funding has been raised towards the execution of two battery energy storage projects in Virginia and Texas with a total capacity of 400MW / 1,400MWh, from a partnership of two investment groups and a power project development company.

Sector-focused investment group Leyline Renewable Capital, which provides debt and equity capital, has formed a joint venture (JV) with energy infrastructure investment company Starwood Energy Group, which will provide access to development capital, support and permanent financing for renewables projects.

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The JV has formed a partnership with American Power Ventures for the development and financing of the battery storage capacity, which will be in the two key regional wholesale markets operated by PJM Interconnection in Virginia and the Electricity Reliability Council of Texas (ERCOT). Leyline said in a press release today that the JV is also seeking other developers to work with that need financing for their renewables projects.

At the Energy Storage Summit USA, hosted earlier this year by our publisher Solar Media, Leyline director of project finance Rebecca Chilton said that the winter storm Texas experienced in February, which caused huge outages was a stark reminder of the “evolving use of batteries and the evolving importance of batteries in all parts of the grid and reformation of the grid”.

In Virginia meanwhile, the state has committed to going 100% emissions-free in its energy sector by 2040 and enacted a 3.1GW by 2035 energy storage target. PJM Interconnection’s service area spanned all of – or portions of – 11 different US states, and was one of the earliest of the US’ transmission network and wholesale market operators to recognise the role batteries can play in balancing the grid as higher shares of renewable energy are reached.

American Power Ventures (APV) has a track record of executing over 5GW of large power projects, including several natural gas power plants and is now seeking to gain further involvement in the fast-rising clean energy space. Starwood Energy Group intends to buy the 400MW of projects APV is developing once they are completed.

Leyline Capital also formed a partnership with recently-launched renewable energy and battery storage developer Momentum Energy Storage Partners, a company founded by Davion Hill, former energy storage lead at accreditation group DNV GL for its North Americas operations. Momentum also has projects under development in Texas and in the PJM service area and Leyline agreed in February to lend the capital needed to support 2GW of standalone battery storage and solar-plus-storage.

See Rebecca Chilton from Leyline Renewable Capital and other clean energy financiers discuss investment in the US market at the Energy Storage Summit USA 2021 in the video below. 

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