Macquarie’s Green Investment Group (GIG) is investing in EsVolta, a developer and owner of utility-scale energy storage projects across North America.
The investment will support the continued North American expansion of EsVolta and finance its portfolio of over 600 megawatt-hour (MWh) of contracted energy storage projects, mainly in California, and an additional development pipeline of more than two gigawatt-hours (GWh).
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.
GIG global head of energy technology Greg Callman said: “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.
“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, the investor said.
EsVolta founder and CEO Randolph Mann said: “With this agreement and support from the Green Investment Group, we are positioned to rapidly grow our energy storage business across North America.
“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.”
RBP Partners will remain a substantial shareholder in the business post transaction.