Aypa Power secures $550m financing for 700MWh of US storage

Utility-scale energy storage developer Aypa Power has successfully closed a $550 million portfolio debt and tax equity financing.

First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada and MUFG Bank, LTD. served as lenders, with US Bancorp Impact Finance serving as the portfolio's tax equity investor.

The portfolio financing supports both the Cald project, a 100 MW / 400 MWh standalone battery storage project in urban Los Angeles, California - which secured a long-term tolling agreement with San Diego Gas & Electric - and the Borden County project, a 150 MW / 300 MWh battery storage project in Texas. 

Both projects are under construction and set to commence commercial operations in 2024.

Marc Atlas, chief financial officer at Aypa Power, said: "Our financial partners are confident in Aypa Power's ability to deliver impactful energy solutions benefitting both the grid and Aypa's customers. We look forward to working with the investor community to bring more standalone battery and hybrid systems online, as customer demand continues to grow across North America."

Louise Pesce, managing director of project finance at MUFG, added:, "MUFG is proud to have partnered with Aypa Power, as well as our fellow lead lenders in Nomura, First Citizens Bank and National Bank of Canada, to lead the financing for these two standalone battery storage projects, which will be essential components in enhancing the reliability and effectiveness of renewable energy systems in California and Texas."

Adam Altenhofen, US Bancorp Impact Finance senior vice president, said: “Our financing helps facilitate the energy transition and it's exciting to consider the potential impact of these projects in California and Texas."