AUSTIN, Texas, Dec. 31, 2024 /PRNewswire/ – Aypa Power, a Blackstone portfolio company and a leading developer and operator of utility-scale energy storage and hybrid renewable energy projects, successfully closed a $190 million financing package for the Bypass Battery Energy Storage System (BESS) project. Located in Fort Bend County, Texas, near Houston, the 200 MW / 400 MWh project will help address the region’s growing capacity needs and reinforce Texas’ position as the nation’s fastest growing and most dynamic market for grid storage.
The financing package includes a $68 million Construction-to-Term Loan and a $91 million Tax Equity Bridge Loan (TEBL), bringing total construction financing to $159 million. Additionally, $31 million in Letters of Credit were issued, with $26 million designated for project-specific needs. Morgan Stanley Renewables Inc. committed $94 million in tax equity financing through a hybrid partnership flip structure.
The financing was provided by SMBC (also serving as Administrative Agent and Green Loan Coordinator) and Santander as Coordinating Lead Arrangers, with Siemens Financial Services as Joint Lead Arranger. The financing structure highlights the strong collaboration between Aypa Power and its financial partners, reflecting a shared commitment to deliver large-scale, high-impact energy projects. Supported by a long-term offtake arrangement, the Bypass BESS project boasts an attractive revenue profile.
“This financing milestone highlights Aypa Power’s ability to deliver projects that set new standards in the market,” said Bill Nguyen, Executive Vice President of Finance at Aypa Power. “As one of the first fully contracted energy storage projects in ERCOT, Bypass BESS demonstrates how innovative financing structures and strong partnerships can deliver critical infrastructure to meet the region’s growing power needs.”
“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.” said Jorge Iragorri, Head of Renewable Energy Investments at Morgan Stanley.
The Bypass BESS project will generate lasting economic benefits for Fort Bend County, including creating hundreds of jobs during peak construction and contributing roughly $20 million in tax revenue over the operational life of the project.
About Aypa Power
Aypa Power, a Blackstone portfolio company, develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects across North America. With 30 projects currently in operation or under construction, and a development pipeline exceeding 22 gigawatts, Aypa delivers solutions that strengthen grid reliability, integrate renewable energy, and reduce dependence on fossil fuels. Aypa has been at the forefront of energy storage development since its first energy storage project came online in 2018. For more information, follow Aypa Power on LinkedIn or visit www.aypa.com.
SOURCE Aypa Power