NineDot Energy Upsizes Revolving Credit Facility to $50 Million
July 17, 2024
Source: Businesswire
Commitment from NY Green Bank doubled based on NineDot’s demonstrated performance and advancement of New York’s energy storage deployment
NEW YORK--(BUSINESS WIRE)--NineDot Energy®, the leading developer of community-scale battery storage projects in the New York City metro area, today announced the closing of an additional $25 million revolving credit facility provided by NY Green Bank (NYGB), a division of the New York State Energy Research and Development Authority (NYSERDA). This facility extends and increases the early-stage standalone storage financing completed by NYGB — announced one year ago — to $50 million. For NineDot Energy, this financing will help fund the Company’s growing pipeline of battery storage projects being built which supports New York’s transition to cleaner, more sustainable energy sources, and is consistent with NineDot’s goal of having 400 megawatts (1600 megawatt hours) of battery storage in development or operation by the end of 2026. For NYGB, this transaction represents another step in its innovative financial support for clean energy infrastructure.
“It’s beenone year since we closed this first-of-its-kind storage transaction executed by NY Green Bank,” said David Arfin, NineDot Energy CEO and Co-founder. “Over the past year, NineDot’s initial battery site (in the Bronx) became fully operational, we’ve made substantial progress on the buildout of more sites that we expect to reach commercial operation this year, and our pipeline has continued to grow significantly. All of this work is to help make New York cleaner and more sustainable. Having the support of a dedicated public fund like NY Green Bank – which understands the importance of catalyzing a new market — has been critical in our ability to execute and grow.”
NineDot will use the proceeds of this upsized revolving credit facility to finance more grid interconnections of energy storage projects in the New York City region. The first NYGB facility with NineDot surpassed initial impact estimates. It funded projects totaling 113 megawatts (MW), compared to initial estimates of 55 MW. With this upsize, the facility is expected to support up to 180 MW of storage capacity, resulting in 1,520 MT CO2e (CO2 equivalents) in annual greenhouse gas (GHG) emission reductions and over $500 million in project costs, in addition to making the local grid more robust, accelerating the retirement of dirty peaker plants and helping to integrate more clean energy onto the grid.
A 5-megawatt battery site can provide enough energy to power approximately 5000 New York City households for four hours on a hot summer day, such as NineDot’s Bronx site recently did during New York City’s June and July 2024 heat waves, the first of many expected this summer.
“NY Green Bank is excited to continue to support NineDot’s growth through the upsize and extension of this interconnection deposit revolving credit facility,” said Kelsey Clair, Director at NY Green Bank, who co-led the transaction. “This catalytic financing at the pre-NTP phase, which covers essential activities like project planning, permitting, and contract finalization, is spurring multiples of invested capital on our contribution and driving significant impact in a key growth area of energy storage, while facilitating deployment of additional battery storage sites in New York City.”
With this financing, NineDot Energy has secured over $400 million to acquire, develop and operate battery storage sites across the New York City boroughs, Westchester County and Long Island. NineDot’s first battery storage site is in the Northeast Bronx, and many sites under construction will become operational in the next twelve months, supporting a cleaner and more resilient grid for the New York City community.
About NineDot Energy
NineDot Energy is the leading community-scale battery storage developer and operator in the New York City metropolitan region. We create innovative urban energy solutions that support a more resilient grid, deliver economic savings, reduce carbon emissions, and improve environmental equity. Many of our battery storage locations are designed to include solar systems and electric vehicle charging capabilities as well. NineDot Energy’s name derives from the classic mathematical puzzle for sparking out-of-the-box solutions. We are based in Brooklyn, New York at NYU’s Urban Future Lab. Learn more at nine.energy.
Contacts
Media Contact
Karen Alter, 650-383-8552, karen@nine.energy