TransGrid Energy LLC, a key player in utility-scale renewable energy under Hanwha FutureProof, has successfully secured over $1.4 billion in financing to support the development of two major battery storage projects. The funding package includes $705 million in debt financing, a $270 million tax equity financing commitment, and a tax credit transfer transaction worth up to $490 million, finalized in December 2024.
The capital will be used to finance the construction of the Atlas VII and Atlas IX battery storage projects, located in La Paz County, Arizona. These stand-alone facilities, with a combined capacity of 450 megawatts/1,800 megawatt-hours (MWh), are designed to enhance grid stability and reliability for California’s energy consumers. The projects, currently under construction by Qcells USA, are expected to be operational later this year.
Both projects will play a crucial role in California’s energy infrastructure through 15-year Resource Adequacy contracts with Southern California Edison, ensuring resilience within the California Independent System Operator (CAISO) market.
Financing Consortium and Investment Structure
TransGrid secured the $705 million in project loans through a bank consortium led by Société Générale and Santander as lead arrangers. Other financial institutions involved in the loan package include:
BNP Paribas
Banco Bilbao Vizcaya Argentaria (BBVA)
East West Bank
Shinhan Bank
Siemens Financial Services
Associated Bank
Additionally, the financing package includes a $270 million hybrid tax equity commitment from an affiliate of a major financial institution, along with a tax credit transfer transaction of up to $490 million from an investment tax credit purchaser.
Industry Reactions
Sean Park, President of TransGrid Energy LLC, emphasized the significance of this financing deal, stating:
“This successful closing of $1.4 billion in portfolio financing highlights TransGrid’s commitment to delivering 1,800 MWh of battery storage facilities that will bolster reliability in the CAISO market. We are grateful for the strong support from our financial partners and look forward to further expanding our energy infrastructure initiatives.”
Sang Joon Lee, representative of Société Générale’s Energy Plus Group, reinforced the firm’s dedication to the green energy transition:
“Société Générale is committed to advancing the global green energy transition and supporting the U.S. in achieving net-zero carbon emissions. The battery market is among the fastest-growing power sources in CAISO, and we are thrilled to collaborate with leading developers like TransGrid.”
Andrew Platt, Head of Structured Finance and Advisory at Santander Corporate & Investment Banking, acknowledged the strategic importance of the Atlas VII and Atlas IX projects:
“Santander congratulates the TransGrid team on achieving financial close for these critical projects in a growing energy market. We remain committed to partnering with companies that drive clean energy adoption and look forward to supporting TransGrid’s continued success.”
Strengthening Renewable Energy Infrastructure
The National Energy Transition Roadmap (NETR) has identified battery storage as a key component of the clean energy transition. As California moves towards a more sustainable energy mix, investments like TransGrid’s Atlas VII and Atlas IX projects mark a significant step in strengthening grid resilience and reducing carbon emissions.
