Aypa Power secures $190m for Texas battery storage project
Author: PPD Team Date: January 3, 2025
Aypa Power, a Blackstone portfolio company, has obtained $190m in financing for its Bypass battery energy storage system (BESS) project in Fort Bend County, Texas. The 200MW/400MWh facility will address the region’s growing energy storage needs.
The financing includes a $68m construction-to-term loan, a $91m tax equity bridge loan, and $31m in letters of credit, with $26m allocated for project-specific requirements. Morgan Stanley Renewables committed $94m in tax equity financing through a hybrid partnership flip structure.
SMBC acted as administrative agent and green loan coordinator, with Santander and Siemens Financial Services serving as lead arrangers. The project also benefits from a long-term offtake agreement, ensuring its financial stability.
Aypa Power EVP Bill Nguyen highlighted Bypass BESS as a key milestone, being one of the first fully contracted energy storage projects in ERCOT (Electric Reliability Council of Texas). The project is expected to create hundreds of construction jobs and generate $20m in tax revenue over its lifespan.
In 2024, Aypa Power also secured $323m for the Kuna BESS project in Idaho, which will become the state’s largest battery storage facility by mid-2025.