SMT Energy & SUSI Partners Secure Tax Equity Investment For Texas Battery Storage Portfolio

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Aug 08, 2023, 11:37 ET

SMT Energy and joint venture partner SUSI Partners ("SUSI"), acting on behalf of the SUSI Energy Transition Fund ("SETF) have signed a tax equity financing agreement with Greenprint Capital for a 100 MW battery energy storage portfolio located in Texas, U.S.
All ten battery storage projects in the portfolio are expected to start commercial operations in the coming months, contributing to grid stability and enabling the shift towards renewable energy supplies

DENVER, Aug. 8, 2023 /PRNewswire/ -- SUSI Partners, acting on behalf of SETF, and U.S. clean energy developer SMT Energy have secured a tax equity investment from specialised tax equity investor Greenprint Capital for a co-owned 100 MW battery storage portfolio located in South Texas. With all assets expected to start commercial operations in the coming months, the investment signals a high level of confidence in the assets' ability to operate successfully in the ERCOT electricity market.

The 100 MW battery storage portfolio was developed by SMT Energy, which managed the assets during construction and will continue overseeing commercial operations as minority owner. The portfolio consists of ten utility-scale standalone battery energy storage projects that will help stabilise strained power grids in the region by balancing mismatches of electricity supply and demand.

In the U.S., battery energy storage systems became eligible for investment tax credits ("ITC") after passage of the 2022 Inflation Reduction Act, which takes account of the growing importance of battery storage technology in balancing electricity grids and enabling the shift to renewable energy supplies. The majority of projects in the Texas battery storage portfolio furthermore qualify for a higher ITC rate due to their contribution to the economic transition of so-called Energy Communities, which historically have been disproportionately reliant on the fossil fuel industry and equally burdened by the resulting pollution.

ABOUT SUSI PARTNERS

Founded in 2009, SUSI Partners is a Swiss fund manager specialised in sustainable energy infrastructure investments with EUR 1.9bn in capital commitments from institutional investors. The firm's investment strategy focusses on private equity and credit opportunities across the energy transition spectrum, including clean energy generation, energy efficiency measures, and solutions enabling clean energy use. With a successful track record of more than 140 transactions in over 20 countries to date, SUSI Partners seeks to achieve attractive risk-adjusted returns for its clients and their beneficiaries while contributing meaningfully to achieving global climate neutrality.

ABOUT SMT ENERGY

SMT Energy is a leading developer, owner, and operator of battery energy storage facilities throughout the United States. Under the strategic leadership of two industry veterans, John Switzer and David Spotts, SMT Energy has developed over $1.5 Billion worth of battery energy storage deals since 2019. To facilitate SMT Energy's mission of accelerating the energy transition, SMT Energy was one of the early players in the market to focus on front-of-the-meter battery energy storage with full merchant exposure.

ABOUT GREENPRINT CAPITAL

Greenprint Capital is a professional advisory and consulting firm focused on structured tax credit and preferred equity investments in renewable energy projects. Having deployed over USD 300 million since 2020, Greenprint and its financial partners invest in and support infrastructure development activities and seek to serve all stakeholders involved.

SOURCE SMT Energy