#United States #Austin #Blackstone #Aypa Power #Bypass BESS

Aypa Power Secures $190 Million for Bypass Battery Storage Project in Texas

Aypa Power, a prominent player in the energy sector and a part of the Blackstone portfolio, has recently reached a financial milestone by securing $190 million in funding for its Bypass Battery Energy Storage System (BESS) project. This significant financing will enable the development of a 200 MW / 400 MWh energy storage facility located in Fort Bend County, Texas, just outside of Houston.

Project Details and Impact

The Bypass BESS project aims to address the increasing energy demands in the region, thereby reinforcing Texas' standing as a leading market for grid storage solutions. The funding package includes an intriguing mix of $68 million dedicated to Construction-to-Term financing and $91 million allocated to a Tax Equity Bridge Loan (TEBL), yielding a total of $159 million in construction financing alone. Furthermore, $31 million in Letters of Credit have been issued, of which $26 million is earmarked for project-specific expenditures.

Morgan Stanley Renewables Inc. has committed $94 million through a novel hybrid partnership flip structure, signaling the financial community's robust backing for this initiative. Aypa Power’s partnership with leading financial institutions such as SMBC, which acts as the Administrative Agent and Green Loan Coordinator, and Santander as Coordinating Lead Arrangers, signals a strong collaborative effort to advance this essential energy project.

Significance of the Financing

Bill Nguyen, Executive Vice President of Finance at Aypa Power, emphasized the importance of this financing, stating, "This financing milestone highlights Aypa Power's ability to deliver projects that set new standards in the market... Bypass BESS demonstrates how innovative financing structures and strong partnerships can deliver critical infrastructure." The project is touted as one of the first fully contracted energy storage solutions in the Electric Reliability Council of Texas (ERCOT), showcasing an innovative approach to meet the power demands of the region.

Jorge Iragorri, Head of Renewable Energy Investments at Morgan Stanley, further reiterated the significance of this partnership, noting, "We are excited to partner with Aypa Power and Blackstone on this innovative ERCOT BESS project and continue building grid infrastructure for the growing electrification needs of the U.S."

Economic Benefits to Local Communities

In addition to elevating Texas's energy capacity, the Bypass BESS project is poised to deliver lasting economic contributions to Fort Bend County. It is expected to create hundreds of jobs during peak construction phases and generate approximately $20 million in tax revenue over the lifespan of its operation. These benefits will not only bolster the local economy but will also support the region's transition to more sustainable energy sources.

About Aypa Power

Founded under the aegis of Blackstone, Aypa Power is at the forefront of renewable energy development. With 30 projects either completed or in progress, and a robust development pipeline exceeding 22 gigawatts, Aypa Power is committed to enhancing grid reliability, promoting renewable energy integration, and reducing reliance on fossil fuels. Since launching its first energy storage project in 2018, Aypa Power has continued to set the pace for innovation in the energy storage sector.

For further details, follow Aypa Power on LinkedIn or visit their official website at www.aypa.com.