Jupiter Power closes $174.6 Million Portfolio Debt Financing on Six Texas Battery Energy Storage Projects
AUSTIN – Jupiter Power LLC
(“Jupiter”), a leading developer and operator of utility-scale, battery energy storage systems, today announced the closing of a $174.6 million portfolio debt financing for six battery energy storage projects in the ERCOT market in Texas. KeyBank National Association(“KeyBank”) provided the financing. Jupiter is backed by EnCap Investments L.P., Yorktown Partners, and Mercuria Energy.
The six projects included in the financing are all stand-alone, front-of-meter battery energy storage systems and are supported by Jupiter’s optimization strategies to maximize revenues. Four of the battery energy storage projects are operating, including the recently announced Flower Valley II 200MWh project. The remaining two projects, each 200MWh, are currently in commissioning. At over 650MWh, Jupiter has the leading stand-alone energy storage portfolio in ERCOT. Jupiter’s market operations team uses the company’s unparalleled forecasting expertise, analytics, and intellectual properties to optimize day ahead and real-time revenues.
“When we started developing these projects in 2018, nothing like them had been built. The financing of these complex assets provides third-party validation of Jupiter’s strategy. We greatly appreciate KeyBank’s support and trust as we execute on our growing pipeline of energy storage assets,” said Bruce Thompson, Chief Financial Officer of Jupiter Power.
“This financing demonstrates that carefully sited, well executed battery projects managed by innovative trading and forecasting teams have recognized value and represent an enormous opportunity for growth,” said Kellie Metcalf, Managing Partner, EnCap Investments L.P.
“As a part of our continuing support for renewable energy, we are pleased to underwrite and serve as Lead Arranger and to provide capital for Jupiter’s stand-alone battery energy storage facilities” said Aaron Klein, Managing Director, Utilities Power & Renewables at KeyBanc Capital Markets. “This represents a first of its kind financing, and we look forward to continuing the relationship with Jupiter to deploy new technologies and energy solutions.”
Jupiter was advised by Norton Rose Fulbright & Husch Blackwell on this financing transaction for the Term Loan and LC Facility with KeyBank.
About Jupiter Power, LLC
Jupiter is a leading energy storage independent power producer with deep trading, analytics, development, finance, operations, and construction capabilities, and unparalleled intellectual property in dispatch optimization. Jupiter is backed by EnCap Investments L.P., Yorktown Partners, and Mercuria Energy, and has offices in Austin, Texas, and Chicago, Illinois. For more information on Jupiter Power LLC, please visit our Twitter
, or Facebook
pages or visit www.jupiterpower.io
About KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $40 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 700 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.
Jupiter Power’s largest utility-scale battery storage facility to date, Flower Valley II enters commercial operations in Reeves County, Texas
The new 200MWh storage facility is among the largest energy storage projects in commercial operation in Texas. Flower Valley I and Flower Valley II represent a combined investment of more than $70 million in Reeves County. Jupiter expects a total of more than 650MWh of dispatchable energy storage capacity to be operational before the 2022 summer peak season in ERCOT.
AUSTIN, TEXAS – March 30, 2022- Jupiter Power LLC
(“Jupiter”) today announced that its Flower Valley II LLC(“Flower Valley II”), a battery energy storage facility located in Reeves County, Texas, has commenced commercial operations. Flower Valley II, Jupiter’s first transmission connected project, is a 100-megawatt(MW) energy storage facility, consisting of 200-megawatt hours (MWh) of duration capacity. Flower Valley II is among the largest energy storage projects in commercial operation in Texas, providing power to the ERCOT grid for use by Texas consumers of all types and sizes, both through energy capacity and grid-firming ancillary services. The 100MW Flower Valley II facility translates to enough power to meet the electricity needs of 20,000 homes at peak demand in Texas.
Flower Valley II adjoins Flower Valley I, an existing distribution-connected Jupiter battery energy storage facility. Together, Flower Valley I and Flower Valley II represent a combined investment of more than $70 million in Reeves County. Jupiter has two other transmission-connected projects, each 200MWh, currently in commissioning in West Texas, with all capacity expected to be operational before the 2022 summer peak season in ERCOT.
The commencement of Flower Valley II’s commercial operations is a significant milestone in Jupiter’s previously announced plan to build and operate more than 650MWh of energy storage capacity in ERCOT.
“We are thrilled to announce the commencement of commercial operations at our largest battery to date,” said Andy Bowman, Chief Executive Officer, Jupiter Power. “Our utility-scale energy storage projects provide fast-responding, dispatchable energy that is essential for allowing the grid to better match renewable resources with customer demand. Jupiter Power is committed to pioneering strategies that both make the grid more resilient and bring the most affordable energy to customers when and where they need it, not just in the ERCOT market but also across the country.”
“Jupiter’s innovative approach to energy storage focuses on finding locations on the grid where dispatchable electricity resources may be called upon to relieve areas of congestion and increase resiliency for consumers,” said Kellie Metcalf, Managing Partner, EnCap Investments.
“Projections show that Texas will continue to lead the U.S. in the addition of wind and solar generation,” said Bill Flores, former U.S. Congressmen, Energy & Commerce Committee. “Renewable resources, however, add increasing complexity and reliability challenges to grid management, but the addition of significant energy storage and related technologies will help mitigate these challenges to help improve grid resilience and reliability as part of an ‘All of the Above’ energy solution to provide power while reducing emissions.”
About Jupiter Power LLC
Jupiter is a leading energy storage independent power producer with deep trading, analytics, development, finance, operations, and construction capabilities and unparalleled intellectual property in dispatch optimization. Jupiter is backed by EnCap Investments L.P., Yorktown Partners and Mercuria Energy, and has offices in Austin, Texas, and Chicago, Illinois. Jupiter has invested over $250million to date in a portfolio of utility-scale energy storage projects operating or in construction in the U.S., with a leading pipeline of over 12,000 MW in active development. For more information on Jupiter Power LLC, please visit our Twitter
, or Facebook
pages or visit www.jupiterpower.io
About EnCap Investments L.P.
Since 1988, EnCap Investments has been the leading provider of growth capital to the independent sector of the U.S. energy industry. The firm has raised 22 institutional funds totaling approximately $38 billion and currently manages capital on behalf of more than 350 U.S. and international investors. For more information, please visit www.encapinvestments.com
Jupiter Power’s Crossett Power Battery system in construction—the largest in Texas—builds on the state’s leadership in renewables and historic growth in grid storage development.
PV Magazine's Ryan Kennedy reports that data from ERCOT shows that more than 6,147 MW of solar and 1,506 MW of battery storage are in line to enter service in 2021. Read the article here.
Jupiter Power Announces 652 Megawatt Hours of Battery Storage Projects
Utility-scale energy storage company Jupiter Power LLC
(“Jupiter”) today announced it will build six stand-alone, utility-scale battery storage projects this year, totaling 652 megawatt-hours of energy storage capacity. The projects consist of three 200-megawatt-hour projects and three smaller projects, each strategically sited and configured at optimized locations. The projects are all expected to be online by Q3 2021.
Formed in 2017, Jupiter is a developer, owner and operator of energy storage projects in select U.S. markets. “Jupiter was founded on the idea that the rapid growth of renewables means not just cleaner energy, more jobs and a stronger tax base for local communities, but also that we must find ways to make intermittent wind and solar power fit better into the power grid, and storage is the way to do this,” said Jupiter Chief Executive Officer Andy Bowman, whose company is primarily backed by leading energy investor EnCap Investments L.P. “The projects we are announcing today will not only strengthen the grid and provide backup power when needed, they will also help ensure that the cheapest power available – increasingly wind and solar – can get to market regardless of when and where it is generated.”
While most storage companies today build projects only after putting contracts in place for capacity or ancillary services, Jupiter focuses on innovative new structures for contracted projects and putting revenue optimization strategies to work on uncontracted projects sited to help address price volatility and transmission bottlenecks. The company believes its unique ability to strategically site projects and to maximize revenue via contracting and real-time sales allows it to maximize the huge emerging market opportunity for energy storage technologies.
Chief Operating Officer Audrey Fogarty leads Jupiter’s work implementing its novel approaches to storage. “Storage has a unique ability to enhance grid reliability by making power flows more stable during times of rapid supply increases and decreases from wind and solar projects or transmission constraints,” Ms. Fogarty said. “We have spent a considerable amount of time developing proprietary data-driven approaches around how best to site and operate highly flexible, rapidly acting storage projects within today’s power markets. By deciding when to charge and discharge as needed to optimize performance of the system and grid support requirements, Jupiter is leading the way toward much more dynamic utilization of energy storage than we have seen to date.”About Jupiter Power LLC
Jupiter Power is a utility-scale energy storage company that uses novel applications of cutting-edge energy storage technologies to better serve today’s electricity business. Jupiter is backed by leading energy investors EnCap Investments L.P., Yorktown Partners and Mercuria Energy and has offices in Austin, Texas and Chicago, Illinois. The company is currently developing more than 10GW of storage projects for construction over 2022-2026 in the most promising United States markets, with a particular focus on Texas, the eastern seaboard, California and the midcontinent. For more information, please visit www.jupiterpower.io
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