esVolta, LP, a leading developer and operator of utility-scale battery energy storage projects across North America, has successfully completed a preferred equity transaction with Captona LLC, a well-established energy transition investment firm. The deal, combined with the sale of ITC transfer proceeds, is expected to raise $243 million in investment.
These funds will be used to finance three of esVolta’s projects in the Electric Reliability Council of Texas (ERCOT) market, which will collectively provide nearly 1 GWh of capacity. The projects—Anole, Desert Willow, and Burksol—are currently under construction and are expected to begin commercial operations in the first half of 2025.
esVolta’s Chief Executive officer, Randolph Mann, “Having such a well-known and established company partner with esVolta is a testament to the team’s experience, ability, and track record in bringing high-value, safe, and reliable battery energy storage to the Texas grid.”
Justin Johns, esVolta’s Chief Financial Officer, said, “esVolta is leading the transformation of the electric grid. Focused on sustainability and innovation, we appreciate Captona’s partnership in this transaction, enabling us to continue delivering value for utilities, energy users, and investors alike.”
Analysts predict that U.S. energy storage capacity could grow more than ten times by 2030, driven by state decarbonization goals, increased corporate demand, and falling costs. Investments in modernizing the grid and expanding energy storage are essential to maintaining the reliability, resilience, and sustainability of the U.S. electric grid as energy needs evolve and climate challenges grow.
With this transaction, esVolta raised nearly $900 million for its energy storage business in 2024, highlighting the strength of its platform as it rapidly expands energy storage across key U.S. states. This deal provides the necessary capital to continue supplying fast-responding, clean energy resources to the ERCOT power grid.
esVolta was represented in the transaction by the law firm Morgan Lewis & Bockius, while Captona and its equity partner were represented by Kirkland & Ellis LLP. Since 2017, esVolta has been successfully developing and managing standalone battery energy storage projects. The company has a robust pipeline with over 30 projects, totaling nearly 25 GWh of storage capacity.
These projects are designed to address the challenges of renewable energy sources like solar and wind, which can be intermittent. By providing reliable energy storage, esVolta’s projects will help reduce dependence on traditional fossil fuel plants, enhance power quality, and ensure reliable energy availability for utilities and system operators, meeting the increasing demand for electricity.
