The investment will support the continued North American expansion of esVolta and finance its portfolio of over 600 MWh of contracted energy storage projects, primarily in California, and an additional development pipeline of more than 2 GWh.
The relationship brings together esVolta’s project origination, development and delivery capabilities with GIG’s financial, technical and structuring expertise. The investment will initially take the form of a bridge loan but will convert to equity upon receipt of regulatory approvals, including the approval of The Committee on Foreign Investment in the United States and the Federal Energy Regulatory Commission.
Utility-scale energy storage for more flexibility
“esVolta is a leading storage developer with an outstanding management team and significant growth potential across new markets. GIG is perfectly positioned to accelerate that growth and help deliver esVolta’s substantial development pipeline,” said Greg Callman, Global Head of Energy Technology at GIG. “Energy storage is critical to enabling increased renewables deployment, and we’re looking forward to leveraging our capabilities with esVolta to accelerate the energy transition across California and beyond.
With the 100 Percent Clean Energy Act, California is aiming to meet targets of 60% renewable power by 2030 and 100% by 2045. The expected addition of more solar on the system will lead to overproduction and curtailment during the day, while requiring ramping and peaking capacity in the evening when solar power is not available. GIG’s investment in esVolta and its pipeline of utility-scale energy storage projects will help add the flexibility required to achieve its renewable energy targets.
Rapid growth in North America
“With this agreement and support from the Green Investment Group, we are positioned to rapidly grow our energy storage business across North America,” said Randolph Mann, founder and chief executive officer of esVolta. “Demand for energy storage in our home state of California remains strong, and we see vast opportunities for geographic expansion as well as additional product and service offerings. Our relationship with GIG will further broaden our expertise and unlock additional growth opportunities.”
See also: Spain: 247,5 kWh Sonnen battery installed
RBP Partners will remain a substantial shareholder in the business post transaction. “This investment from GIG is a significant endorsement of the high-quality team, portfolio and pipeline esVolta has assembled,” said Digby Beaumont, Managing Director at RBP Partners. “We are looking forward to working closely with GIG and the esVolta team in coming years to take maximum advantage of the opportunities ahead for the business.” (mfo)
