Takeaways

• Lydian Energy secures $689 million financing to expand U.S. solar and battery storage capacity.
• The funding supports three major projects across New Mexico, Texas, and Utah.
• The transaction reflects growing investor confidence in contracted renewable infrastructure and grid resilience.

Lydian Energy secures $689 million financing to develop two large-scale solar projects and a major battery storage facility across the U.S. Southwest and Texas, strengthening grid reliability and expanding dispatchable clean power in high-demand regions.

The financing package, backed by MUFG and CIBC, includes a Construction-to-Term Loan, Tax Credit Bridge Loan, Co-Investment Bridge Loan, and a Letter of Credit Facility. This capital stack will fund construction and long-term operations for AC Ranch 1 in New Mexico, Yellow Viking in Texas, and the Faraday BESS battery storage project in Utah.

The deal marks Lydian Energy’s first full-stack financing structure, creating a framework for future funding as institutional lenders expand exposure to contracted renewable infrastructure.

“This transaction marks a major milestone for Lydian Energy, as it is the first full-stack financing we’ve closed, and it’s especially notable to do so with industry-leading lenders MUFG and CIBC,” said CEO Emre Ersenkal. “We are excited about this significant financing, which creates a strong precedent for future investments across Lydian Energy’s pipeline and unlocks capital to support continued growth.”

Read More: Sunsave Raises £100m in Debt, £13m in Equity to Power UK’s Solar Future

Solar Projects Backed by Long-Term Power Purchase Agreements

AC Ranch 1, located in New Mexico, is a 75 MWac / 100 MWdc solar photovoltaic project backed by a busbar power purchase agreement (PPA) with an investment-grade offtaker. The region’s strong solar resources are expected to deliver stable generation and predictable cash flows.

In Texas, Yellow Viking will add 170 MWac / 210 MWdc of solar capacity within ERCOT’s Oncor territory, one of the fastest-growing electricity markets in the United States. A 100 MW portion of its output is secured under a long-term PPA with an investment-grade buyer, reducing merchant risk while allowing some market upside.

Such contracted structures are increasingly attractive to lenders, especially as tax credit transferability and inflation-linked pricing improve project economics.

Battery Storage Enhances Grid Stability and Reliability

The Faraday BESS Phase 1 project in Utah will deploy a 150 MW / 733 MWh battery energy storage system. Backed by a long-term PPA, the facility will provide dispatchable capacity to support peak demand and grid stability.

Battery storage is becoming central to grid modernization strategies across Western states, where renewable penetration is rising, and extreme weather events are putting pressure on electricity systems.

Chris Moakley, Co-Founder and Managing Partner at Excelsior Energy Capital and Chair of Lydian Energy’s Board, said the financing supports reliable, sustainable, and affordable domestic energy while advancing much-needed solar and battery storage projects.

Policy Support Reinforces Strong Investor Confidence

The projects align with U.S. decarbonization goals and state-level reliability mandates. Federal incentives under the Inflation Reduction Act continue to strengthen renewable project bankability, while battery storage is increasingly viewed as essential infrastructure.

For investors, the transaction highlights a strong appetite for renewable energy financing backed by creditworthy offtakers and diversified revenue streams. The integration of storage with solar reflects a broader shift toward dispatchable clean power that can compete with conventional generation.

Expanding a 4.4 GW Renewable Energy Pipeline

With 18 solar and storage projects totaling 4.4 GW, Lydian Energy continues to expand its development footprint. As U.S. electricity demand rises due to electrification, industrial growth, and data center expansion, projects combining solar and battery storage are expected to play a key role in stabilizing grids and accelerating emissions reductions.

Also Read: Terabase Raises $130M to Expand Solar Digitization and Automation

The $689 million financing signals continued momentum in utility-scale renewable investment, reinforcing the importance of structured finance and long-term contracts in scaling resilient energy infrastructure.

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Source: ESG NEWS