power move

Houston company secures $837M for trio of Texas energy storage projects

All three of Intersect Power's storage systems — Lumina I, Lumina II, and Radian — are expected to be online this year. Photo courtesy of Intersect

Houston-based clean energy company Intersect Power has wrapped up $837 million in financing for the construction and operation of three standalone battery energy storage systems in Texas.

The money came in the form of debt financing, construction debt, and tax equity. The projects qualify for tax credits under the federal Inflation Reduction Act. Backers of the financing include Deutsche Bank, Morgan Stanley, and affiliates of HPS Investment Partners.

All three storage systems — Lumina I, Lumina II, and Radian — are expected to be online this year. Each system will be capable of storing 320 megawatts of solar power with a two-hour duration.

“Batteries will be a vital part of the energy transition and are the perfect complement to the billions of dollars of solar generation that we are building in California and Texas,” Sheldon Kimber, founder and CEO of Intersect, says in a news release.

Kimber says the storage systems will help Intersect Power triple the size of its portfolio over the next three years.

Intersect’s portfolio features 2.2 gigawatts of solar projects that are already operating, and 2.4 gigawatt hours of storage being operated or built. The company was founded in 2016.

Intersect recently signed a deal with Tesla Energy for 15.2 gigawatt hours of Megapack battery energy storage systems. The contract, which will deliver systems for Intersect projects in Texas and California, ends in 2030.

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A View From HETI

Blackstone Infrastructure, an affiliate of Blackstone Inc., will acquire a major Texas electricity provider. Photo via Shutterstock

Blackstone Infrastructure, an investment giant with $600 million in assets under management, has agreed to buy publicly traded TXNM Energy in a debt-and-stock deal valued at $11.5 billion.

TXNM Energy is the parent company of Lewisville-based Texas New Mexico Power (TNMP), which supplies electricity to more than 270,000 homes and businesses throughout Texas. Its Houston-area service territory includes Alvin, Angleton, Brazoria, Dickinson, Friendswood, La Marque, League City, Sweeny, Texas City and West Columbia.

Once Blackstone Infrastructure wraps up the deal in the second half of 2026, Albuquerque, New Mexico-based TXNM will no longer be a public company. But TNMP’s headquarters will remain in Texas and its rates will continue to be set by the Public Utility Commission of Texas. TNMP was founded in 1934.

Blackstone Infrastructure is affiliated with investment powerhouse Blackstone Inc., which has $1.2 trillion in assets under management and is the world’s largest investment manager.

“TNMP has done an excellent job of meeting its customers’ growing demand for electricity and supporting the communities it serves,” Sean Klimczak, Blackstone’s global head of infrastructure, said in a news release. “We look forward to utilizing our long-term investment commitments to support TNMP as they continue on this path of high-demand growth across Texas.”

During TXNM’s fourth-quarter earnings call in February, Chairwoman and CEO Patricia Vincent-Collawn said the company’s five-year Texas capital investment plan had grown by more than $1 billion.

“Our future is so bright with these increased investment levels that we are now targeting earnings growth of 7 percent to 9 percent through 2029,” Vincent-Collawn said.

“Our financial expectations are driven by the continued expansion of grid infrastructure supporting growth and reliability in our Texas service territory,” she added.

In 2024, TXNM reported revenue of $1.96 billion, up 1.7 percent from the previous year.

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