SUSI Partners, acting on behalf of the SUSI Energy Transition Fund (“SETF”), and U.S. clean energy developer SMT Energy have secured a tax equity investment from specialised tax equity investor Greenprint Capital for a co-owned 100 MW battery storage portfolio located in South Texas. With all assets expected to start commercial operations in the coming months, the investment signals a high level of confidence in the assets’ ability to operate successfully in the ERCOT electricity market.

The 100 MW battery storage portfolio was developed by SMT Energy, which managed the assets during construction and will continue overseeing commercial operations as minority owner. The portfolio consists of ten utility-scale standalone battery energy storage projects that will help stabilise strained power grids in the region by balancing mismatches of electricity supply and demand.

In the U.S., battery energy storage systems became eligible for investment tax credits (“ITC”) after passage of the 2022 Inflation Reduction Act, which takes account of the growing importance of battery storage technology in balancing electricity grids and enabling the shift to renewable energy supplies. The majority of projects in the SETF Texas battery storage portfolio furthermore qualify for a higher ITC rate due to their contribution to the economic transition of so-called Energy Communities, which historically have been disproportionately reliant on the fossil fuel industry and equally burdened by the resulting pollution.

For SETF, which has also invested in clean energy generation, energy efficiency, electric vehicle charging infrastructure, and integrated customer energy solutions, battery storage investments are an important pillar of its diversified energy transition portfolio. In addition to an Italian clean energy platform, which is a local leader in the development of battery storage projects with 650 MW currently in an advanced development stage, the Fund currently invests in battery storage assets in the U.S. through its partnerships with SMT Energy and Vermont-based Encore Renewable Energy.