Lydian Energy has joined with Excelsior Energy Capital. Collectively, they are currently co-developing three BESSs, or Battery Energy Storage System projects located in ERCOT, Texas’ deregulated ERCOT power market. These projects, sited in Pintail, Crane, and Headcamp, will contribute to improving the performance of the grid by injecting renewable energy that we can count on. Excelsior’s Fund II, for example, just closed on over a billion dollars of financing. With a combined $139 million investment, these facilities are instrumental to that success.
Each of the three BESS projects has a capacity of 200 megawatts (MW) and 400 megawatt hours (MWh). The Headcamp project, located in Pecos County, has a capacity of 150MW/300MWh. It recently finalized a $94 million financing package with KeyBank, comprised of both taxable and tax-exempt bonds. Construction of these facilities is now literally taking place with operations planned to begin in the fourth quarter of 2025.
Strategic Vision for Renewable Energy
Lydian Energy’s effort is consistent with its overall mission to provide the most affordable, cleanest energy solutions to Texans. The company remains in aggressive pursuit of other funding opportunities to grow its pipeline. It only intends to advance new projects as far as 2025. This strategic expansion is indicative of strong demand for proven, dependable energy infrastructure in some of the fastest growing markets in the United States.
“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve.” – Lydian Energy CEO Emre Ersenkal
Our resulting partnership with Excelsior Energy Capital has supercharged our ability to do that and expand the scope of those objectives. Guided by Excelsior’s deep expertise and robust resources, Lydian seeks to create inclusive and sustainable energy solutions that align with the needs of communities.
Commitment to Energy Storage
With hundreds of BESS projects currently moving forward, the scale of this transformation cannot be underestimated. Texas is all in on battery storage. In December 2024, Excelsior Energy Capital executed a multi-year reservation agreement with LG Energy Solution Vertech for 7.5 gigawatt-hours (GWh). This action underscores their substantial commitment to accelerating energy storage technological maturity and market uptake.
“We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic and affordable energy.” – [Source not specified]
This emphasis on battery storage is increasing grid reliability in Texas. Retrofitting ERCOT coal plants with natural gas serves a number of purposes including enabling an easier transition to renewables in the ERCOT market.
Looking Ahead
As Lydian Energy pursues its ambitious growth trajectory, the company looks forward to helping drive breakthrough innovation in energy storage solutions. This collaboration with Excelsior Energy Capital is a tremendous mark of progress and reflects our commitment to realizing a more sustainable energy future.
“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth US markets.” – Excelsior Energy Capital co-founding partner and Lydian Energy chair of the board Anne Marie Denman