SMT Energy secures US$135 million for 160MW/320MWh ERCOT BESS

April Bonner | Source: Energy Storage News | Posted 03/01/2025

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Macquarie Group and KeyBanc Capital Markets were joint lead arrangers in the US$100 million project financing. Macquarie’s Commodities and Global Markets business also provided a preferred equity investment and is mandated to sell the project’s investment tax credits (ITCs) of approximately US$62 million.

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SMT Energy has successfully secured $135 million in funding for its 160MW/320MWh battery energy storage system (BESS) in Houston, Texas, named SMT Houston IV. This facility will engage in the wholesale market and provide ancillary services within the Electric Reliability Council of Texas (ERCOT) market, with operations expected to commence in the second quarter of 2026. The project financing was jointly arranged by Macquarie Group and KeyBanc Capital Markets, with Macquarie also investing in preferred equity and managing the sale of approximately $62 million in investment tax credits.

FlexGen Power Systems will serve as the system integrator for the BESS, supplying equipment and utilizing its energy management system, HybridOS, for site integration and analytics. The energy storage market in Texas is expanding rapidly due to population growth and increasing energy demands from data centers and large companies. With the completion of SMT Houston IV, SMT Energy now operates or is constructing eighteen utility-scale BESS assets totaling around 500MWh, alongside a 2GWh pipeline of future projects aimed for commercial operation by 2030.

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SMT Energy secures US$135 million for 160MW/320MWh ERCOT BESS

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