SUSI Partners & SMT Energy to Double Size of Texas Battery Storage Portfolio

• • • SUSI Partners ("SUSI"), through the SUSI Energy Transition Fund ("SETF"), is expanding its partnership with U.S. clean energy developer SMT Energy ("SMT") by growing their Texas battery energy storage ("BESS") portfolio from 100 MW to at least 200 MW
    • The additional projects, which are mainly located in areas around Dallas and Houston, are expected to start construction in the first half of 2024 and complement an existing, fully operational South Texas BESS portfolio

DENVER, Dec. 5, 2023 /PRNewswire/ -- SUSI Partners, through SETF, and joint venture partner SMT Energy have agreed to significantly grow their Texas BESS portfolio, adding ten projects with a combined capacity of 100 MW to a fully operational 100 MW portfolio. The projects are primarily located around the cities of Dallas and Houston, thus complementing the existing assets, which are concentrated in Southern Texas, and creating a more sizeable and geographically diversified state-wide BESS portfolio.

SUSI and SMT started their joint venture in the summer of 2022, with the partnership constructing, commissioning, and operating a 100 MW South Texas BESS portfolio since. The recently agreed expansion of the partnership comes on the back of recent successes, with the seed portfolio entering commercial operations, and the two parties securing tax equity for said portfolio. All additional assets are expected to start construction in early 2024 with commercial operations expected to commence between late 2024 and the first half of 2025.

The Texas ERCOT electricity market in recent times experienced record-high load levels amid extreme summer temperatures and continuous population and economic growth – all trends that are not expected to subside and will continue to drive elevated volatility. With intermittent renewable energy generation playing an increasingly important role in meeting energy demand in the state, and the ageing thermal generation fleet increasingly prone to production disruptions, BESS have emerged as one of the most cost-effective dispatchable generation solutions in dealing with spiking power demand and electricity prices.

ABOUT SUSI PARTNERS

Founded in 2009, SUSI Partners is a Swiss fund manager specialised in sustainable energy infrastructure investments with EUR 1.9bn in capital commitments from institutional investors. The firm's investment strategy focuses on private equity and credit opportunities across the energy transition spectrum, including clean energy generation, energy efficiency measures, and solutions enabling clean energy use. With a successful track record of more than 140 transactions in over 20 countries to date, SUSI Partners seeks to achieve attractive risk-adjusted returns for its clients and their beneficiaries while contributing meaningfully to achieving global climate neutrality.

ABOUT SMT ENERGY

SMT Energy is a leading developer, owner, and operator of battery energy storage facilities throughout the United States. Founded in 2019, SMT Energy has successfully developed over USD 1.5bn worth of battery energy storage assets, and has commissioned, owns, and operates one of the largest portfolios of battery energy storage facilities in the United States.

SOURCE SMT Energy