09 Nov 2023
esVolta, LP, a leading developer, owner and operator of utility-scale battery storage projects in North America, announced that it has closed a tax equity investment with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, to finance its Santa Paula Energy Storage project.
The new tax equity financing will support the completion of a 30 MW / 60 MWh battery project currently under construction about 60 miles northwest of Los Angeles. The project is expected to enter commercial operations later this year to deliver reliable electric capacity, energy, and other ancillary services to the California electric grid, including long-term contracts with a major energy commodity firm and several California electric community choice aggregators.
esVolta and Impact Finance are among the first partners to structure tax equity taking advantage of the tax credits for standalone energy storage enabled by the passage of the Inflation Reduction Act in 2022.
"The Santa Paula transaction constitutes esVolta’s first tax equity transaction. We are grateful for U.S. Bank’s leadership and innovation displayed in executing this milestone financing for our company," said Randolph Mann, President of esVolta, LP.
“Generate acquired esVolta in July of 2022 to help scale utility-scale storage as a critical enabler of the infrastructure transition. Our tax equity team is excited to partner with U.S. Bank to finance standalone battery storage systems, support grid resilience and deliver clean energy in California,” said Scott Jacobs, CEO and Co-founder of Generate Capital.
"We are deeply dedicated to our work in supporting sustainability and green infrastructure,” said U.S. Bancorp Impact Finance Director of Renewable Energy Investments Darren Van’t Hof. “Because we combine purpose and profitability, intentionally considering social and environmental impact, we are glad to be a part of this project.”
The transaction was facilitated by Orrick Herrington & Sutcliffe LLP as legal adviser for esVolta and Leverage Law Group, LLC as legal adviser for U.S. Bank.
esVolta | www.esvolta.com
Generate Capital | http://www.generatecapital.com
U.S. Bancorp | usbank.com