AUSTIN, Texas, Dec. 31, 2024 – Aypa Power, a Blackstone portfolio company and a leading developer and operator of utility-scale energy storage and hybrid renewable energy projects, completed a $190 million funding round for its Bypass Battery Energy Storage System (BESS) project. Located in Fort Bend County, Texas, near Houston, this 200 MW / 400 MWh project will bolster the region’s energy capacity and solidify Texas’ leading role in the nation’s energy storage market.
This funding comprises a $68 million Construction-to-Term Loan and a $91 million Tax Equity Bridge Loan (TEBL), totaling $159 million in construction financing. An additional $31 million in Letters of Credit were secured, with $26 million allocated for project-specific requirements. Morgan Stanley Renewables Inc. contributed $94 million in tax equity financing via a hybrid partnership flip structure.
SMBC (also acting as Administrative Agent and Green Loan Coordinator) and Santander served as Coordinating Lead Arrangers, with Siemens Financial Services as Joint Lead Arranger. This financing structure exemplifies the strong collaboration between Aypa Power and its financial partners, reflecting a shared commitment to large-scale energy projects. The Bypass BESS project benefits from a long-term power purchase agreement, resulting in a strong revenue stream.
“This financing achievement underscores Aypa Power’s capacity to deliver market-leading projects,” stated Bill Nguyen, Executive Vice President of Finance at Aypa Power. “As one of the first fully contracted energy storage projects in ERCOT, Bypass BESS showcases how innovative financing and strong partnerships can deliver crucial infrastructure to meet the region’s increasing energy demands.”
“We are pleased to collaborate with Aypa Power and Blackstone on this innovative ERCOT BESS project and continue developing grid infrastructure to meet the U.S.’s growing electricity needs,” said Jorge Iragorri, Head of Renewable Energy Investments at Morgan Stanley.
The Bypass BESS project will generate significant economic benefits for Fort Bend County, including creating numerous construction jobs and generating approximately $20 million in tax revenue throughout its operational lifespan.
About Aypa Power
Aypa Power, a Blackstone portfolio company, develops, owns, and operates large-scale energy storage and hybrid renewable energy projects across North America. With 30 projects operational or under development, and a project pipeline exceeding 22 gigawatts, Aypa provides solutions that enhance grid reliability, integrate renewable energy sources, and reduce fossil fuel dependence. Aypa has been a leader in energy storage development since its first project in 2018. For more information, follow Aypa Power on or visit .
SOURCE Aypa Power