Pathway Power announced that it has finalized a $150 million senior-secured financing facility from funds managed by AB CarVal, providing capital to support the late-stage development of the company’s growing portfolio of battery storage and hybrid renewable energy projects across the United States.
The financing will be used to fund key development and pre-construction activities, including interconnection costs, power purchase agreement (PPA) requirements, equipment deposits, and other construction equity expenses. The transaction closed alongside a separate equity investment in Pathway Power, further strengthening the company’s capital position as it advances multiple projects toward construction.
Founded in 2022 and headquartered in San Diego, California, Pathway Power focuses on developing utility-scale hybrid solar and battery energy storage projects across major U.S. regional transmission organization (RTO) markets. The company currently has a development pipeline of 13 hybrid and battery energy storage system (BESS) projects representing approximately 3.2 GWac of capacity nationwide.
Pathway Power’s management team brings significant industry experience, having completed more than 70 mergers and acquisitions transactions and developed approximately 40 GW of energy projects over the past two decades. The company positions its projects to serve utilities, grid operators, and large-load customers while supporting grid reliability and the broader energy transition.
AB CarVal said the financing reflects confidence in Pathway Power’s development strategy and project portfolio. The firm’s investment is expected to accelerate the deployment of projects in key energy markets, including the Southwest Power Pool (SPP) and Midcontinent Independent System Operator (MISO) regions, where demand for reliable power continues to grow due to data center expansion and industrial reshoring initiatives.
AB CarVal is a global alternative investment manager and part of AllianceBernstein’s Private Alternatives business. Since 2017, the firm has deployed more than $4.5 billion into energy transition investments. Across its broader investment platform, AB CarVal has invested approximately $161 billion through nearly 5,900 transactions spanning 82 countries and currently manages approximately $22 billion in assets.
Norton Rose Fulbright served as legal counsel to AB CarVal on the financing transaction.
KEY QUOTES:
“We are excited to collaborate with AB CarVal as our facility lender. Their deep expertise in renewable energy finance and confidence in our pipeline are meaningful validation of our project fundamentals and approach to building clean energy capacity. We look forward to putting that capital to work.”
Jam Attari, CEO, Pathway Power
“We believe Pathway’s strong pipeline of hybrid solar and energy-storage assets are set to provide generation and grid stability in critical RTO’s including SPP and MISO. We are pleased to work with Pathway Power to finance a mix of advanced stage assets that are expected to help address load growth in these markets including from data centers and reshoring. We look forward to seeing these projects break ground in the coming months.”
Alex Flamm, Managing Director, AB CarVal
