On December 20, 2023, On.Energy, an end-to-end integrator of battery energy storage and Independent Power Producer (IPP), announced it has closed both construction facility totaling more than $40 million and permanent debt facilities for an 80 megawatt-hour (MWh) portfolio in Texas (the Palo Verde Projects) with financing provided by Live Oak Bank. Wilson Sonsini Goodrich and Rosati represented On.Energy on the transaction.

The project also integrates an investment tax credit (ITC) transfer—among the first of its kind for merchant battery storage projects. The portfolio includes both greenfield development sites as well as projects acquired through M&A in mid-2023. The company continues to advance a pipeline of over 1GWh of utility-scale energy storage systems across ERCOT, CAISO, and beyond, with a follow-on portfolio of projects of 160MWh expected to begin operation by Q3 2025.

The projects, set to come online in Q3 of 2024, will support the balancing of the ERCOT grid by providing both ancillary services as well as arbitrage.

The Wilson Sonsini team that advised On.Energy on the transaction includes Scott Zimmermann, Nicole Gambino, Jason Slagle, and Nadia Senter.

For more information, please see On.Energy’s press release.