growth ahead

Energy storage company secures $77.6 million to continue Texas expansion

On.Energy's new Texas battery storage portfolio will triple the company’s installed and in-construction asset base in the U.S. Photo via On.Energy

Energy storage developer On.Energy announced it closed $77.6 million in construction credit facilities provided by Pathward N.A. and BridgePeak Energy Capital to build its 160 Megawatt-hour Palo de Agua battery storage portfolio across the state of Texas.

The new financing will allow the Miami-based company with project development offices in Houston to continue its expansion, which already includes 80 MWh of operational assets in Houston.

“In less than 12 months, we have managed to structure project finance credit solutions for more than 240 MWh, deploying critical infrastructure to one of the country’s most volatile power markets,” On.Energy CEO Alan Cooper said in a news release.

Cooper added that the Texas project triples the company’s installed and in-construction asset base in the U.S.

On.Energy uses its proprietary On.Command energy management system to implement customized, AI-driven solutions that support grid-scale projects and peak-shaving solutions that use energy storage to reduce electricity demand during peak hours.

By 2028, the company aims to have more than 2 GWh of battery energy storage scheduled for activation across California, Texas and Mexico.

“As Texas continues its prolific energy transition, On.Energy is providing the solutions to ensure grid reliance and resilience,” Christopher Soupal, Pathward divisional president and revenue lending officer, said in a news release.

“Pathward’s multi-project construction facility with On.Energy is another example of our commitment to the U.S. renewable energy sector, and we are proud to be their lending partner.”

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A View From HETI

Nightpeak Energy's Bocanova Power project in Brazoria County has reached commercial operation. Photo courtesy Nightpeak Energy.

Oakland, California-based Nightpeak Energy announced earlier this month that its 150-megawatt battery storage project in Brazoria County, known as Bocanova Power, is now operating to address Houston’s peak capacity needs.

“This battery storage project will enhance grid reliability in the Alvin area while continuing to support integrating renewable energy,” Cary Perrin, president and CEO of the Northern Brazoria County Chamber of Commerce, said in a news release. “I believe we need energy storage now more than ever for its pivotal role in reducing strain on the grid while meeting fast-growing power demand in Texas and Brazoria County."

The project reached commercial operation in August, according to the release. The project utilizes Tesla's Megapack 2 XL battery storage system, and the facility operates under a long-term power purchase agreement with an undisclosed “investment-grade power purchaser.”

“Bocanova Power demonstrates the speed at which Nightpeak Energy is overcoming complex challenges to energize projects that support America's growing need for affordable, reliable, and secure energy,” Paris Hays, co-founder and CEO/CDO of Nightpeak Energy, added in the news release. “Unprecedented AI data center and manufacturing growth has only accelerated the need for these resources.”

Hays added in the release that the company has plans for more energy infrastructure projects in Texas and in the Western U.S.

Nightpeak Energy develops, owns and operates power plants that support the growing capacity needs of a decarbonized grid. It also owns and operates 240 MW of battery storage and natural gas generation facilities.

The company was founded in 2022 and backed by equity funding of up to $200 million from Dallas-based investment firm Energy Spectrum Capital.

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