Deutsche Bank is contributing to the energy transition by providing letters of credit (L/Cs) to US clean energy company, Intersect Power, for the construction and operation of three standalone battery energy storage systems (BESS) in Texas.

The L/Cs contribute to two separate transactions closed this month by Intersect representing an aggregate of US$837 million of financing commitments that will fund the Lumina I, Lumina II, and Radian BESS projects.

Industry-leading partners

The transactions cover portfolio-level construction debt, tax equity, and term debt financing with industry-leading partners.

Deutsche Bank is partnering in the construction debt facility and providing the operational L/Cs to the projects.

Morgan Stanley was selected to provide tax equity, while funds and accounts managed by HPS Investment Partners will make construction debt and term debt investments.

Swift construction

The three sites will move from concept to commissioned in under 12 months and each will provide a capacity of 320 megawatts per hour of battery storage with a two-hour duration.

Deutsche Bank says it is pleased to support Intersect, "for the swift construction and deployment of three utility-scale standalone battery storage systems in Texas," according to the bank's managing director and head of infrastructure & energy financing, Jeremy Eisman.

"This financing will help facilitate Intersect's contributions to the reliability of the US power grid and validates Deutsche Bank's continued commitment to support the premier developers in the sector," he added.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.