Plus Power Closes $219M Non-recourse Project Finance and Credit Facilities for 185 MW/565 MWh Kapolei Energy Storage Project

Plus Power, an independent developer of transmission-connected battery energy storage projects, today announced it closed a landmark credit facility for its 185 MW/565 MWh Kapolei Energy Storage (KES) project in Hawai'i. Plus Power's contract with Hawaiian Electric supports the largest standalone energy storage project financing including $188 million in non-recourse construction debt and $31 million in letters of credit for a total commitment of $219 million.  Mizuho Securities USA LLC and KeyBank led the financing and were joined by Silicon Valley Bank and CoBank.

Plus Power's success completing KES' financing serves as a strong signal of capital market support for high-quality, standalone energy storage projects.  Across more than 20 states, Plus Power's pipeline of more than 7 GW of projects has been sited using its proprietary algorithms to enable a more efficient and reliable electric grid. Plus Power's transmission-scale standalone energy storage systems provide capacity, energy, and ancillary services, shifting low-cost renewable energy delivery to match demand. Standalone energy storage can be sited precisely to deliver services that enable accelerated decarbonization by integrating onshore and offshore utility-scale renewable energy as well as distributed renewable resources.

"This landmark financing highlights Plus Power's ability to execute on projects that deliver energy, capacity and grid services for our customers and attract capital from top tier financiers like Mizuho and KeyBank," said Plus Power General Manager Brandon Keefe.  "Very rapid growth in standalone battery storage projects will be needed to transition the grid to 100% renewable energy. Should standalone energy storage become eligible for the federal production tax credit, matching access by hybrid energy storage, we will be able to expedite gigawatts of Plus Power projects to support wholesale markets."

"We are excited to work with Plus Power to enable accelerated deployment of renewable energy in wholesale energy markets," said Andy Redinger, head of KeyBanc Capital Markets Utilities, Power & Renewable Energy Group. "We commend Plus Power for driving the standalone energy storage market to large-scale financeable projects, and are pleased to act as Coordinating Lead Arranger, Joint Bookrunner, and Syndication Agent."

Plus Power's KES project is located in Kapolei on the island of Oahu and is the largest energy storage project selected by Hawaiian Electric. It will provide capacity and shifting of low-cost renewable energy to periods of high demand, and deliver 50 MW of fast-frequency response services, as well as virtual inertia and black-start capabilities to the Hawaiian Electric Companies. In so doing, it will support the closing of Hawai'i's coal plant, reduce curtailment of renewable generation, and enable the procurement and integration of new renewable resources aligned with the state's transition to 100 percent renewable energy generation.