Crux Arranges Construction-to-Term Financing For 40 MWh Battery Storage Project At UC San Diego

Crux, a capital platform focused on the clean energy sector, has facilitated construction-to-term loan financing for EnerSmart’s 8 MW / 40 MWh battery energy storage system (BESS) project at the University of California, San Diego (UC San Diego) campus in the United States. The financing will support the development of the battery storage facility, which is expected to strengthen the university’s energy resilience and help reduce electricity costs during peak-demand periods.

The project is supported by a 10-year resource adequacy contract and will connect directly to UC San Diego’s advanced microgrid. The integration of battery storage into the university’s existing energy infrastructure is expected to improve the reliability of campus electricity supply while providing additional flexibility in managing energy demand. The project will also contribute to broader efforts to strengthen regional grid resilience.

Crux arranged the senior secured construction-to-term loan facility through a targeted capital-raising process. The company secured competitive debt and preferred equity proposals within three weeks. The transaction was subsequently closed six weeks after the signing of the term sheet. During the financing process, Crux worked closely with EnerSmart, the lender and legal advisers to structure the funding according to the project’s requirements.

The financing facility was also increased to address evolving project requirements. This included bridging an equity grant and accommodating higher equipment costs resulting from tariff-related increases. The flexible financing structure helped address these changes while supporting the project’s development.

Drew Venkatraman, Managing Director of Debt Capital Markets at Crux, said the company was pleased to support EnerSmart’s partnership with UC San Diego. He highlighted the importance of battery storage in strengthening campus energy resilience amid increasing demand for reliable electricity. He also noted that the transaction demonstrated how flexible financing solutions could help bring critical energy infrastructure projects to market.

Skyler Tennis, Chief Operating Officer of EnerSmart, said the project required collaboration among multiple public- and private-sector partners. These included UC San Diego, the California Energy Commission and other stakeholders involved in financing, grant support and energy-market programmes. He added that the combined efforts would help deliver meaningful energy savings to the university while improving campus and regional grid resilience.

The transaction highlights Crux’s growing role in arranging customised financing solutions for clean energy developers and manufacturers. Its services cover different parts of the capital structure, including debt, preferred equity, tax equity and transferable tax credits.

Through its financing platform, Crux connects project developers and manufacturers with lenders and investors, using market intelligence and pricing data to structure transactions. The company also supports due diligence, financing adjustments and transaction execution.

The EnerSmart project demonstrates how tailored financing arrangements can help advance battery storage development and support the deployment of energy infrastructure needed for a more reliable and resilient electricity system.