Pathward and NADBank Finance Energy Storage Facility to Support ERCOT Battery Growth
Pathward®, N.A. has acted as agent for $146.5 million in construction loans to support the acquisition and construction of six battery energy storage system (BESS) projects in Cameron County, Texas. The North American Development Bank (NADBank) provided $73.25 million in funding as a participant. The projects will have a total capacity of 154 megawatt-hours, increasing energy storage for the Texas grid, and are expected to be fully operational by Summer 2025.
The BESS projects will participate in the Electric Reliability Council of Texas (ERCOT) market, selling electricity and grid stabilizing services. They are projected to cycle 54,925 MWh of electricity annually, equivalent to the consumption of about 4,000 U.S. households. This marks Pathward's second closed construction facility with the sponsor, following a $72.35 million construction loan for three BESS projects in Bexar County, Texas in late 2023.
Pathward®, N.A. ha agito come agente per 146,5 milioni di dollari in prestiti per la costruzione a sostegno dell'acquisizione e della costruzione di sei progetti di sistemi di stoccaggio energetico a batteria (BESS) nella contea di Cameron, in Texas. La North American Development Bank (NADBank) ha fornito 73,25 milioni di dollari come partecipante al finanziamento. I progetti avranno una capacità totale di 154 megawattora, aumentando lo stoccaggio energetico per la rete elettrica del Texas e si prevede che siano completamente operativi entro l'estate del 2025.
I progetti BESS parteciperanno al mercato dell'Electric Reliability Council of Texas (ERCOT), vendendo elettricità e servizi di stabilizzazione della rete. Si prevede che cicleranno 54.925 MWh di elettricità all'anno, equivalente al consumo di circa 4.000 famiglie statunitensi. Questo segna la seconda struttura di costruzione chiusa di Pathward con il patrocinatore, dopo un prestito di costruzione di 72,35 milioni di dollari per tre progetti BESS nella contea di Bexar, in Texas, alla fine del 2023.
Pathward®, N.A. ha actuado como agente para 146,5 millones de dólares en préstamos de construcción para apoyar la adquisición y construcción de seis proyectos de sistemas de almacenamiento de energía de batería (BESS) en el condado de Cameron, Texas. El Banco de Desarrollo de América del Norte (NADBank) proporcionó 73,25 millones de dólares en financiamiento como participante. Los proyectos tendrán una capacidad total de 154 megavatios-hora, aumentando el almacenamiento de energía para la red eléctrica de Texas, y se espera que estén totalmente operativos para el verano de 2025.
Los proyectos BESS participarán en el mercado del Electric Reliability Council of Texas (ERCOT), vendiendo electricidad y servicios de estabilización de la red. Se proyecta que ciclarán 54.925 MWh de electricidad anualmente, equivalente al consumo de aproximadamente 4.000 hogares en EE. UU. Esto marca la segunda instalación de construcción cerrada de Pathward con el patrocinador, después de un préstamo de construcción de 72,35 millones de dólares para tres proyectos BESS en el condado de Bexar, Texas, a finales de 2023.
Pathward®, N.A.는 텍사스 카메론 카운티에 있는 여섯 개 배터리 에너지 저장 시스템(BESS) 프로젝트의 인수 및 건설을 지원하기 위해 1억 4천650만 달러 규모의 건설 대출의 에이전트로 활동했습니다. 북미 개발은행(NADBank)은 참여자로서 7천325만 달러를 지원했습니다. 이 프로젝트는 텍사스 전력망의 에너지 저장을 증가시키는 총 용량 154 메가와트시를 가지며, 2025년 여름까지 완전 가동될 것으로 예상됩니다.
BESS 프로젝트는 텍사스 전력 신뢰성 위원회(ERCOT) 시장에 참여하여 전기와 그리드 안정화 서비스를 판매할 것입니다. 이들은 연간 54,925 MWh의 전기를 순환할 것으로 예상되며, 이는 약 4,000 가구의 소비량에 해당합니다. 이는 Pathward가 후원자와 함께한 두 번째 건설 시설로, 2023년 말 텍사스 베사르 카운티에서 세 개의 BESS 프로젝트를 위한 7천235만 달러 건설 대출 이후의 일입니다.
Pathward®, N.A. a agi en tant qu'agent pour 146,5 millions de dollars de prêts à la construction afin de soutenir l'acquisition et la construction de six projets de systèmes de stockage d'énergie par batterie (BESS) dans le comté de Cameron, au Texas. La North American Development Bank (NADBank) a fourni 73,25 millions de dollars de financement en tant que participant. Les projets disposeront d'une capacité totale de 154 mégawattheures, augmentant le stockage d'énergie pour le réseau texan, et devraient être entièrement opérationnels d'ici l'été 2025.
Les projets BESS participeront au marché du Electric Reliability Council of Texas (ERCOT), en vendant de l'électricité et des services de stabilisation du réseau. Ils devraient cycler 54 925 MWh d'électricité par an, équivalent à la consommation d'environ 4 000 foyers américains. Cela marque le deuxième projet de construction fermé de Pathward avec le sponsor, après un prêt de construction de 72,35 millions de dollars pour trois projets BESS dans le comté de Bexar, au Texas, à la fin de 2023.
Pathward®, N.A. hat als Agent für 146,5 Millionen Dollar an Baukrediten gehandelt, um den Erwerb und Bau von sechs Projekten für Batteriespeichersysteme (BESS) im Cameron County, Texas, zu unterstützen. Die North American Development Bank (NADBank) stellte 73,25 Millionen Dollar als Teilnehmer an der Finanzierung bereit. Die Projekte werden eine Gesamtleistung von 154 Megawattstunden haben, was die Energiespeicherung für das texanische Stromnetz erhöht, und es wird erwartet, dass sie bis zum Sommer 2025 vollständig betriebsbereit sind.
Die BESS-Projekte werden am Markt des Electric Reliability Council of Texas (ERCOT) teilnehmen und Elektrizität sowie Netzdienstleistungen anbieten. Es wird geschätzt, dass sie 54.925 MWh Strom jährlich umsetzen, was dem Verbrauch von etwa 4.000 US-Haushalten entspricht. Dies markiert die zweite abgeschlossene Baufinanzierung von Pathward mit dem Sponsor, nach einem Baukredit von 72,35 Millionen Dollar für drei BESS-Projekte im Bexar County, Texas, Ende 2023.
- Pathward secured $146.5 million in construction loans for six BESS projects
- Projects will add 154 megawatt-hours of energy storage capacity to the Texas grid
- Annual electricity cycling of 54,925 MWh, equivalent to 4,000 U.S. households' consumption
- Pathward has closed over $2.14 billion in renewable energy generation financing since 2018
- None.
Insights
The
The project's 154 megawatt-hours capacity is substantial, potentially serving about 4,000 households. This expansion aligns with the growing demand for energy storage solutions in ERCOT's market, which is important for grid stability and renewable energy integration. The expected operational date of Summer 2025 provides a clear timeline for investors to monitor progress and potential revenue generation.
Pathward's total renewable energy financing of over
The BESS projects in Texas represent a strategic move in the rapidly evolving ERCOT market. With the ability to cycle 54,925 MWh of electricity annually, these facilities will play a important role in grid stabilization and energy arbitrage. The millisecond response time for charging and discharging is particularly valuable for frequency regulation services, which command premium prices in the ERCOT market.
ERCOT's financial incentives for reserve energy provision make this investment potentially lucrative. As Texas continues to integrate more renewable energy, the demand for flexible storage solutions is likely to increase, potentially boosting the value of these assets. The projects' ability to complement both renewable and conventional generation positions them as versatile grid assets.
The partnership between Pathward, NADBank and Palmetto Energy Capital creates a robust financing structure that could serve as a model for future energy storage developments. This collaboration may accelerate the deployment of battery storage in Texas, potentially reshaping the state's energy landscape and creating new investment opportunities in the sector.
Funding will support a dramatic expansion of the sponsor’s battery storage strategy in
Pathward®, N.A. has served as agent for
According to the sponsor, together, the BESS projects will have a total capacity of 154 megawatt-hours that will increase energy storage capacity for the
The standalone battery storage projects will participate in the Electric Reliability Council of
This is Pathward’s second closed construction facility with the sponsor. In late 2023, Pathward also provided
“Financing the renewable energy economy is an important component of our sustainability strategy, and battery storage is an exciting segment of the market that we’re passionate to support,” said Christopher Soupal, Divisional President of Pathward’s Commercial Finance strategic business line. “We appreciate the ongoing trust placed with our team and the opportunity to continue partnering on future projects in
“NADBank is very pleased to be backing the transition to a greener economy by supporting a more reliable
Pathward is a dedicated financing partner for renewable energy and battery storage, specializing in USDA lending programs. Through its partnership with Palmetto, Pathward provides streamlined access to development capital, construction loans and USDA and conventional term loans. Pathward has closed over
About Pathward®
Pathward®, N.A., a national bank, is a subsidiary of Pathward Financial, Inc. (Nasdaq: CASH). Pathward is a
About NADBank
NADBank is a financial institution established and capitalized in equal parts by
About Palmetto Energy Capital
Palmetto Energy Capital is the country’s leading renewables loan service provider to banks and private credit funds. PEC provides comprehensive loan origination, underwriting, closing, servicing and portfolio management solutions designed to maximize value for all stakeholders. As of August 2024, Palmetto manages a portfolio of more than
View source version on businesswire.com: https://www.businesswire.com/news/home/20241008605760/en/
Pathward
Courtney Heidelberg
605.291.7044
mediarelations@pathward.com
NADBank
Oscar Durán
210.231.8000
oduran@nadb.org
Palmetto Energy Capital
info@PalmettoEnergyCapital.com
Source: Pathward, N.A.
FAQ
What is the total value of the construction loans provided by Pathward for the BESS projects in Cameron County, Texas?
How much funding did NADBank provide for the BESS projects in Texas?
What is the total capacity of the BESS projects and when are they expected to be operational?
How much electricity are the BESS projects projected to cycle annually?
