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NYGB’s First Purely Energy Storage Transaction is Backed by NineDot’s Grid Interconnection Portfolio
NineDot Energy, a leading developer of community-scale clean energy projects, announced the closing of a new $25 million revolving credit debt facility provided by NY Green Bank (NYGB), a division of the New York State Energy Research and Development Authority (NYSERDA). This facility is the first purely energy storage transaction completed by NYGB. For NineDot Energy, this financing will help fund the Company’s growing pipeline of battery storage projects being built in support of New York’s transition to cleaner, more sustainable energy sources, and is consistent with NineDot’s goal of installing 400 megawatts (1600 megawatt hours) by the end of 2026. For NY Green Bank, this transaction represents another step in its innovative financial support of New York State’s Climate Leadership and Community Protection Act(CLCPA) goal to develop 3000 megawatts of storage by 2030 (on the path to developing a nation-leading 6000 megawatts of energy storage).
“We’re excited, proud and grateful that such a forward-looking institution saw the value in helping us achieve our vision,” said David Arfin, NineDot Energy CEO and Co-founder. “We believe that climate change is the most critical issue of our time, and innovators like NineDot and NY Green Bank can work together to make a positive impact on the environment and the society in which we live and work. As we learned when we engaged with them previously, NY Green Bank is a smart, creative, and diligent partner willing to work with young companies doing innovative and important things.”
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NineDot will use the proceeds of this revolving credit facility to finance the grid interconnection of energy storage projects in the New York City metro area. In the initial draws, fourteen (14) NineDot battery storage sites will be covered by this facility, but that number is projected to grow to approximately forty (40) projects or more, each up to five (5) megawatts, in the coming years. In addition to making the local grid more robust 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. From a decarbonization perspective, using the NYC Department of Building’s (DOB’s) emissions methodology, if one of NineDot’s 5-megawatt batteries operated for all of 2022, it would have reduced emissions in the community by approximately 420 tons of CO2e (carbon dioxide equivalents).
Andrew Kessler, NY Green Bank’s President, said, “We are thrilled to complete this innovative financing transaction with NineDot Energy in support of community-scale battery storage that is critical to New York’s decarbonization efforts. We look forward to seeing these projects operating in support of a resilient future for New York City.”
With this financing, NineDot Energy has secured more than $150 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 metro region.