esVolta, LP, a developer and operator of utility-scale battery energy storage projects in North America, has completed a preferred equity transaction with Captona LLC, an energy transition investment firm. Combined with the sale of ITC transfer proceeds, the deal is expected to generate $243 million in investment, marking a significant step in esVolta’s expansion of energy storage capacity.
The funds will be used to finance three major projects in Texas within the Electric Reliability Council of Texas (ERCOT) market—Anole, Desert Willow, and Burksol. These projects, currently under construction, will collectively provide nearly 1 GWh of energy storage capacity and are anticipated to begin commercial operations in the first half of 2025.
Randolph Mann, Chief Executive Officer of esVolta said, “Having such a well-known and established company partner with esVolta is a testament to the team’s experience, ability, and track record in bringing high-value, safe, and reliable battery energy storage to the Texas grid.”
Justin Johns, Chief Financial Officer at esVolta added, “esVolta is leading the transformation of the electric grid. Focused on sustainability and innovation, we appreciate Captona’s partnership in this transaction, enabling us to continue delivering value for utilities, energy users, and investors alike.”
The transaction is part of esVolta’s broader efforts to modernise the US electric grid, with investments in energy storage aimed at enhancing grid reliability, resilience, and sustainability. Analysts project that U.S. energy storage capacity could grow more than tenfold by 2030, driven by state decarbonisation targets, rising corporate demand for renewable energy, and declining storage costs.
With this latest deal, esVolta has raised nearly $900 million for its energy storage business in 2024, reinforcing its position as a leader in the energy transition. These funds will support the deployment of fast-responding, clean energy resources, ensuring reliable energy availability in key markets like ERCOT.
The transaction was facilitated by leading law firms, with Morgan Lewis & Bockius representing esVolta and Kirkland & Ellis LLP representing Captona and its equity partner.
