Aypa Power, a Blackstone portfolio company and leading developer and operator of utility-scale energy storage and hybrid renewable energy projects, has announced the successful close of a $398 million financing package for the Pediment Battery Energy Storage System (BESS), a 250 MW/1,000 MWh project located in Mesa, Arizona. The milestone highlights Aypa's commitment to advancing Arizona's energy infrastructure as the state looks to more than double its energy capacity by 2035.
The financing package includes a construction-to-back-leverage loan, tax credit transfer bridge loan, and letters of credit. The financing group was led by Société Générale, ING Capital LLC (also serving as green loan coordinator), and Bank of America as the Coordinating Lead Arrangers, with Zions Bancorporation (also serving as Administrative Agent), Royal Bank of Canada, and Desjardins Group acting as Joint Lead Arrangers at financial close.
The Pediment BESS will play a key role in supporting the region's growing data center market and increasing renewable energy integration. Operating under a 20-year tolling agreement with Salt River Project (SRP), the project is expected to deliver over $16 million in direct economic impact, including $14 million in property tax revenue to Maricopa County during its first 20 years of operation.
"The closing of this significant financing reflects Aypa Power's ability to execute on large-scale energy storage projects and is a testament to the quality of projects we are bringing to market," said Bill Nguyen, Executive Vice President of Finance at Aypa Power. "The facility's innovative structure and backing from diverse, esteemed financial institutions reflect our capital partners' confidence and ensure the flexibility to advance Pediment's construction."
Trent Hazelwood, Director at Société Générale, said, "Société Générale is honored to partner with Aypa Power and fellow lenders on this important project. The Pediment BESS will play a pivotal role in strengthening the reliability and flexibility of renewable energy systems for Maricopa County and Arizona, advancing the region's clean energy future."
"Pediment represents a well-structured financing for a top-tier battery energy storage project," added Sven Wellock, Managing Director and Lead of Energy – Renewables & Power for ING Capital. "ING is proud to have played a leading role in supporting this effort and contributing to Aypa Power's continued growth and success."
"Amid rising power demand, energy storage is critical for ensuring reliability during the transition to a lower-emissions grid," said Omer Farooq, Managing Director in the Global Sustainable Finance Group at Bank of America. "This transaction supports Aypa Power's efforts to deliver much-needed capacity to Arizona's energy market."
With financing in place, the Pediment BESS is on track to meet key construction milestones, with operations expected to begin in 2026.
