Lydian Energy Secures Major $233M Investment To Strengthen Texas Energy Grid With Battery Storage

Lydian Energy, an independent power producer focused on utility-scale solar and battery energy storage projects across North America, has announced the successful financial close of its first institutional project financing worth $233 million. The funding supports the development of three battery energy storage system (BESS) projects in Texas, within the Electric Reliability Council of Texas (ERCOT) power market.

Two of the projects—Pintail and Crane—are located in San Patricio and Crane Counties, respectively. Each will have a capacity of 200 MW/400 MWh, and together they account for approximately $139 million in financing provided by ING. The third project, Headcamp, a 150 MW/300 MWh facility in Pecos County, has received $94 million in financing from KeyBank, with KeyBanc Capital Markets structuring the financial package.

Emre Ersenkal, CEO at Lydian Energy, stated, “This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve.”

Basilio Guerrero, CFO at Lydian Energy, mentioned, “We are happy to have the support of ING and KeyBank, which recognize both the value of battery storage in today’s grid and the capabilities of our development and delivery platform. We are proud to partner with these leading financial institutions to help deliver the next generation of clean and reliable power in Texas.”

Sven Wellock, Managing Director and Head of Energy – Renewables & Power at ING, said, “Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power. Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

Tyler Nielsen, Managing Director, Utilities Power and Renewables Group at KeyBanc Capital Markets, remarked, “Lydian Energy’s development of Headcamp reflects the type of forward-looking energy infrastructure we aim to support through strategic financing. Our team is thrilled to support Excelsior Energy Capital as they continue to deliver strategic, future-ready investments and projects that are increasingly vital as energy demand and system complexity continue to rise.”

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets. We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy,” stated Anne Marie Denman, Co-Founding Partner at Excelsior Energy Capital and Chair of the Board at Lydian Energy.

All three projects fall under Excelsior Energy Capital’s Fund II, which recently closed with over $1 billion in capital commitments. The fund’s backing reflects a shared vision of building reliable and affordable renewable energy infrastructure that can enhance grid resilience in high-demand areas like Texas. Construction is underway for all three sites, with operations expected to begin by the fourth quarter of 2025.

In addition to the debt financing, the projects are supported by tax credit bridge financing from ING and KeyBank, along with co-investment capital from Excelsior’s limited partners. These investments highlight growing institutional support for battery storage as a critical asset for the energy transition.

Lydian Energy is also actively seeking financing for a wider portfolio of solar and storage projects, with several expected to enter construction later this year. The company’s current development pipeline includes 20 projects totaling 4.7 gigawatts (GW) of capacity. Working in collaboration with financial institutions, regulatory bodies, and community partners, Lydian aims to deliver scalable, policy-aligned energy infrastructure that meets the evolving needs of regional power markets.