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205 MW / 551.65 MWh DC Utility-Scale Battery Energy Storage System (BESS)
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- Renewable Energy - Solar PV & BESS
- 205 MW / 551.65 MWh DC Utility-Scale Battery Energy Storage System (BESS)
205 MW / 551.65 MWh DC Utility-Scale Battery Energy Storage System (BESS)
This is a 205 MW / 551.65 MWh DC utility-scale battery energy storage project located in Midland County, Texas, featuring a 2.7-hour discharge duration on DC nameplate. The system utilizes 110 Tier-1 U.S.-manufactured LFP battery containers (5.015 MWh each, produced in the Midwest) paired with utility-grade medium-voltage conversion stations, constructed under the supervision of a leading national balance-of-plant EPC contractor by discipline and specialized civil works partners. Capacity retention adheres strictly to the original equipment manufacturer’s technical-proposal degradation curve, reaching 66.6% of initial nameplate capacity in Year 20 with no mid-life augmentation.
The sponsor team’s experience spans C&I, distributed generation and utility-scale renewable projects, including EPC and project execution, development, commercialisation and asset management across US energy markets.
Capital Structure and Tax Credit
Total CapEx is $154.6 million, or $280 per kWh of DC nameplate, with the $12.8 million Oncor network upgrade carried outside CapEx as a separate project cost. Total uses at commercial operation are $197.9 million, funded by $63.3 million of senior term debt, a $49.4 million ITC bridge and $85.2 million of equity – a 42.6% / 57.4% debt-to-equity split of permanent capital. Senior debt is sized on the contracted Nephila floor case at a 1.20x minimum debt-service coverage ratio. During construction, equity funds the milestone draws in full for the first seven months before the senior facility is drawn. The 40% investment tax credit ($61.8 million gross) is monetised through a Section 6418 transfer at $0.92 per dollar of credit; the bridge is repaid from the $54.9 million of net proceeds 9 months after commercial operation, with the $8.4 million Nephila ECOD instalment paid from the bridge.
Returns
The three independent market cases show the following. In the P50 base case the project earns $503.4 million of revenue over 20 years, a 19.1% levered after-tax project IRR, a 23.5% investor IRR and a 2.08x multiple, with after-tax payback in year 6. In the P90 downside case revenue falls to $344.9 million; senior debt is unchanged because it is sized on the contracted floor, and the investor IRR is 7.7% with a 1.32x multiple and payback in year 9. In the P20 upside case revenue reaches $801.7 million and the levered after-tax project IRR is 38.3%.
Distributions and Revenue Floor
Distributions follow a 10% cumulative compounded preference, then a full return of the investor’s $85.2 million, then 70% to the investor and 30% to Bear Creek Energy Partners until the investor has received 2.0x its capital ($170.4 million), after which residual cash is split 49% to the investor and 51% to Bear Creek. The senior debt is supported by a 7-year contracted Nephila revenue floor of $56,170 per MW-year, and all 17 internal model checks and the five investor checks tie to zero.
| Metric | Model value |
| Power / energy (MW / MWh DC) | 205 / 551.65 |
| Total CapEx ($) | $154,566,973 |
| CapEx per kWh DC ($) | $280.19 |
| Total uses at COD ($) | $197,911,360 |
| Senior term debt ($) | $63,273,632 |
| ITC bridge ($) | $49,441,479 |
| Equity ($) | $85,196,249 |
| Debt / equity split of permanent capital | 42.6% / 57.4% |
| Minimum DSCR (floor case) | 1.20x |
| ITC rate / gross credit ($) | 40% / $61,826,789 |
| Levered after-tax project IRR P20 / P50 / P90 | 38.3% / 19.1% / 8.3% |
| Investor IRR / multiple P50 | 23.5% / 2.08x |
| Investor IRR / multiple P90 | 7.7% / 1.32x |
| Nephila floor ($/MW-year) / term (years) | $56,170 / 7 |
| Model checks passing | 17 of 17 |
| Year | Degradation Retention | Gross Revenue ($) | Total OpEx ($) | EBITDA ($) | EBITDA Margin |
| Y1 | 100.0% | $29,800,000 | ($3,440,000) | $26,360,000 | 88.5% |
| Y2 | 97.2% | $29,100,000 | ($3,508,800) | $25,591,200 | 87.9% |
| Y3 | 94.7% | $28,500,000 | ($3,578,976) | $24,921,024 | 87.4% |
| Y4 | 92.4% | $27,900,000 | ($3,650,556) | $24,249,444 | 86.9% |
| Y5 | 90.2% | $27,350,000 | ($3,723,567) | $23,626,433 | 86.4% |
| Y6 | 88.1% | $26,800,000 | ($3,798,038) | $23,001,962 | 85.8% |
| Y7 | 86.1% | $26,300,000 | ($3,873,999) | $22,426,001 | 85.3% |
| Y8 | 84.2% | $25,500,000 | ($3,951,479) | $21,548,521 | 84.5% |
| Y9 | 82.3% | $25,000,000 | ($4,030,508) | $20,969,492 | 83.9% |
| Y10 | 80.5% | $24,500,000 | ($4,111,119) | $20,388,881 | 83.2% |
| Y11 | 78.7% | $24,100,000 | ($4,193,341) | $19,906,659 | 82.6% |
| Y12 | 77.0% | $23,700,000 | ($4,277,208) | $19,422,792 | 82.0% |
| Y13 | 75.3% | $23,300,000 | ($4,362,752) | $18,937,248 | 81.3% |
| Y14 | 73.7% | $22,900,000 | ($4,450,007) | $18,449,993 | 80.6% |
| Y15 | 72.2% | $22,500,000 | ($4,539,007) | $17,960,993 | 79.8% |
| Y16 | 70.7% | $22,150,000 | ($4,629,787) | $17,520,213 | 79.1% |
| Y17 | 69.3% | $21,800,000 | ($4,722,383) | $17,077,617 | 78.3% |
| Y18 | 68.0% | $21,500,000 | ($4,816,831) | $16,683,169 | 77.6% |
| Y19 | 67.4% | $21,400,000 | ($4,913,167) | $16,486,833 | 77.0% |
| Y20 | 66.6% | $21,300,000 | ($5,011,431) | $16,288,569 | 76.5% |
| Total | — | $503,400,000 | ($83,573,149) | $419,826,851 | 83.4% |
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Loss of profits, revenue, or business opportunities;
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Purchase price discrepancies, valuation overstatements, or impairment of goodwill;
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Business interruptions, operational downtime, or transaction termination costs;
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Inaccurate seller/buyer figures, bookkeeping errors, or omissions of material facts;
Description
This is a 205 MW / 551.65 MWh DC utility-scale battery energy storage project located in Midland County, Texas, featuring a 2.7-hour discharge duration on DC nameplate. The system utilizes 110 Tier-1 U.S.-manufactured LFP battery containers (5.015 MWh each, produced in the Midwest) paired with utility-grade medium-voltage conversion stations, constructed under the supervision of a leading national balance-of-plant EPC contractor by discipline and specialized civil works partners. Capacity retention adheres strictly to the original equipment manufacturer’s technical-proposal degradation curve, reaching 66.6% of initial nameplate capacity in Year 20 with no mid-life augmentation.
The sponsor team’s experience spans C&I, distributed generation and utility-scale renewable projects, including EPC and project execution, development, commercialisation and asset management across US energy markets.
Capital Structure and Tax Credit
Total CapEx is $154.6 million, or $280 per kWh of DC nameplate, with the $12.8 million Oncor network upgrade carried outside CapEx as a separate project cost. Total uses at commercial operation are $197.9 million, funded by $63.3 million of senior term debt, a $49.4 million ITC bridge and $85.2 million of equity – a 42.6% / 57.4% debt-to-equity split of permanent capital. Senior debt is sized on the contracted Nephila floor case at a 1.20x minimum debt-service coverage ratio. During construction, equity funds the milestone draws in full for the first seven months before the senior facility is drawn. The 40% investment tax credit ($61.8 million gross) is monetised through a Section 6418 transfer at $0.92 per dollar of credit; the bridge is repaid from the $54.9 million of net proceeds 9 months after commercial operation, with the $8.4 million Nephila ECOD instalment paid from the bridge.
Returns
The three independent market cases show the following. In the P50 base case the project earns $503.4 million of revenue over 20 years, a 19.1% levered after-tax project IRR, a 23.5% investor IRR and a 2.08x multiple, with after-tax payback in year 6. In the P90 downside case revenue falls to $344.9 million; senior debt is unchanged because it is sized on the contracted floor, and the investor IRR is 7.7% with a 1.32x multiple and payback in year 9. In the P20 upside case revenue reaches $801.7 million and the levered after-tax project IRR is 38.3%.
Distributions and Revenue Floor
Distributions follow a 10% cumulative compounded preference, then a full return of the investor’s $85.2 million, then 70% to the investor and 30% to Bear Creek Energy Partners until the investor has received 2.0x its capital ($170.4 million), after which residual cash is split 49% to the investor and 51% to Bear Creek. The senior debt is supported by a 7-year contracted Nephila revenue floor of $56,170 per MW-year, and all 17 internal model checks and the five investor checks tie to zero.
Basic Details
Target Price:
$ 0
Gross Revenue
$29,800,000
EBITDA
$26,360,000
Business ID:
L#20261155
Country
United States
Detail
Published on September 11, 2026 at 10:36 pm. Updated on September 12, 2026 at 9:19 am