NineDot Energy, a prominent developer of community-scale battery energy storage systems (BESS) in the New York City metro area, has finalized a $175 million revolving debt financing through Deutsche Bank, known for its expertise in energy infrastructure finance. This financial move underscores the growing importance of battery energy storage in enhancing the sustainability and cleanliness of the New York electric grid. Additionally, it reaffirms NineDot’s position as a leader in the regional energy sector.
The funds from this debt financing will be utilized to support a variety of essential activities across the development timeline. These activities include making grid interconnection deposits, procuring necessary equipment, and overseeing project construction. NineDot’s ambitious vision aims to establish widespread, distributed energy storage throughout New York City, in direct support of New York State’s target of achieving 6,000 megawatts of battery storage in operation by the year 2030.
At present, NineDot Energy operates seven projects at four different locations in The Bronx and Staten Island. These projects recently played a crucial role in supporting approximately 26,000 households in New York City during particularly hot summer days, illustrating the immediate impact of their energy solutions.
NineDot is making significant strides in its development efforts, with more than 60 additional projects in various stages of development or construction. The company remains firmly on track to reach its goal of having 400 megawatts in some form of development, construction, or operation by the end of 2026.
This financing arrangement has also enabled NineDot to repay its existing revolving credit facility, which was previously utilized to fund grid interconnection deposits with NY Green Bank. This strategic move positions NineDot Energy for continued growth and development in the critical area of battery energy storage, further enhancing its commitment to supporting New York’s energy goals.
KEY QUOTES:
“NineDot’s mission is to create innovative urban energy solutions for a cleaner and more sustainable future, and battery storage is a key part of that for New York City. With seven projects operating during this past hot summer, we’ve proven that we can deliver safe and reliable energy solutions in a dense urban area. Our next step is to accelerate our growth and scale our business, and Deutsche Bank recognized the importance of and opportunity in our approach.”
David Arfin, NineDot Energy CEO and Co-founder
“NineDot Energy is a clear leader in bringing critical energy storage infrastructure to the New York region. Deutsche Bank is pleased to continue expanding our distributed development financing offering and to support a premier community storage developer right here in New York City. We look forward to partnering with Carlyle, Manulife and NineDot as they continue their vital work enhancing energy resilience for local communities.”
Jeremy Eisman, Head of Infrastructure and Energy Financing, Deutsche Bank
“This milestone reflects how targeted financing can unlock private capital and accelerate the growth of New York’s clean energy markets. We commend NineDot for advancing community-scale battery storage and look forward to building on this momentum statewide.”
Kelsey Clair, Managing Director, NY Green Bank
