IPP Linea Energy has closed a debt financing and preferred equity commitment for its 250MW/500MWh Mesa View energy storage project in Upton County, Texas, US.
Announced 1 October, the battery energy storage system (BESS) project debt financing consists of a construction-to-term loan, a tax equity bridge loan, and a letter of credit facility.
German commercial bank Norddeutsche Landesbank Girozentrale (NORD/LB) served as coordinating lead arranger, with Texas Capital participating as a syndicate lender. D.E. Shaw Renewable Investments (DESRI) provided the preferred equity commitment for the project.
The Mesa View BESS project is expected to reach commercial operations in 2027.
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Early this year, DESRI signed a preferred equity investment in Linea’s 235MW/470MWh Duffy BESS in Matagorda County, Texas.
SOLV Energy will act as the engineering, procurement and construction (EPC) contractor for the Duffy BESS project, while LG Energy Solution’s system integrator subsidiary LG Energy Solution Vertech will supply US-made BESS systems and its AEROS software suite under a long-term service agreement (LTSA).
Last month in Texas, developer SMT Energy and Software-focused energy storage system integrator FlexGen announced the start of operations of a 160MW/320MWh BESS facility in Houston.
Recently, Energy-Storage.news highlighted Ashish Verma, co-founder and chief business officer at engineering and technical advisory Sunstripe’s words on LinkedIn, concerning Texas. Verma noted that oversupply is eroding margins in both ancillary services and arbitrage markets, a stark contrast to the robust performance recorded between 2021 and 2023. According to Verma, the core issue is duration.
