2 minute read | November.15.2023
Energy-storage company esVolta has closed a tax equity financing with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, to finance its Santa Paula Energy Storage project about 60 miles northwest of Los Angeles.
Orrick advised esVolta.
The transaction marks a significant milestone for esVolta, constituting its first tax equity financing. It represents one of the first tax equity financings structured to capitalize on the tax credits associated with standalone energy storage under the Inflation Reduction Act of 2022.
"The Santa Paula transaction constitutes esVolta’s first tax equity transaction. We are grateful for U.S. Bank’s leadership and innovation displayed in executing this milestone financing for our company," said Randolph Mann, President of esVolta, LP.
esVolta develops, owns and operates utility-scale energy storage projects across North America. Its portfolio of operational plus contracted projects totals more than 1,600 megawatt hours of storage capacity.
The 30 MW / 60 MWh Santa Paula Energy Storage project is expected to enter commercial operation this year to deliver reliable electric capacity, energy and other ancillary services to the California electric grid.
Generate Capital, a leading sustainable infrastructure company driving the infrastructure transition, acquired esVolta last year “to help scale utility-scale storage as a critical enabler of the infrastructure transition,” said Scott Jacobs, CEO and Co-founder of Generate Capital.
“Our tax equity team is excited to partner with U.S. Bank to finance standalone battery storage systems, support grid resilience and deliver clean energy in California.”
Darren Van’t Hof, U.S. Bancorp Impact Finance Director of Renewable Energy Investments, hailed the deal.
"We are deeply dedicated to our work in supporting sustainability and green infrastructure,” he said. “Because we combine purpose and profitability, intentionally considering social and environmental impact, we are glad to be a part of this project.”
It will support the scale-up of utility-scale storage as a critical enabler of energy transition and grid resilience.
Louise Gibbons led the Orrick team advising esVolta. The team also included Wolf Pohl, Helen Aki and Trudie Makens.