esVolta – a leading developer, owner, and operator of utility-scale battery energy storage projects across North America – recently completed a preferred equity transaction structured by Captona, an established energy transition investment firm. This funding and the sale of ITC transfer proceeds are expected to provide $243 million.
This funding will provide financing for three of esVolta’s projects in the Electric Reliability Council of Texas (ERCOT) market, totaling nearly 1 GWh of capacity across the sites, including Anole, Desert Willow, and Burksol. And all projects are currently in construction and are expected to reach commercial operations in the first half of 2025.
Analysts project that the cumulative U.S. energy storage capacity could increase more than tenfold by 2030, driven by state decarbonization targets, expanding corporate demand, and declining costs. And these investments in grid modernization and energy storage are critical to ensuring the reliability, resilience, and sustainability of the U.S. electric grid in the face of evolving energy demands and climate challenges.
Including this deal, esVolta raised nearly $900 million for its energy storage business in 2024, demonstrating the company’s platform’s strength as it rapidly deploy energy storage in key U.S. states. And this deal unlocks efficient capital to continue to deliver much-needed fast-responding clean energy resources to the ERCOT power grid.
Having successfully built and operated standalone battery energy storage assets since 2017, esVolta has an active development pipeline with 30+ projects totaling nearly 25 GWh of capacity. And balancing the intermittent nature of renewable resources like solar and wind and reducing reliance on legacy fossil fuel plants, these projects will improve power quality and reliability for utilities and system operators, ensuring availability when it’s needed most to meet the nation’s growing demand for power.
esVolta was represented in the transaction by Morgan Lewis & Bockius, and Captona and its equity partner was represented by Kirkland & Ellis.
KEY QUOTES:
“Having such a well-known and established company partner with esVolta is a testament to the team’s experience, ability, and track record in bringing high-value, safe, and reliable battery energy storage to the Texas grid.”
– esVolta’s Chief Executive officer, Randolph Mann
“esVolta is leading the transformation of the electric grid. Focused on sustainability and innovation, we appreciate Captona’s partnership in this transaction, enabling us to continue delivering value for utilities, energy users, and investors alike.”
– esVolta’s Chief Financial Officer, Justin Johns
