Energy company Nightpeak Energy has announced the commercial operation of Bocanova Power, a 150 MW battery energy storage facility located in Brazoria County, Texas. Operational since August, the facility aims to strengthen grid reliability in the Houston area, where capacity demand is sharply increasing.
Located approximately 40 kilometres south of downtown Houston, the project is based on Tesla Inc.’s Megapack 2 XL technology, manufactured in California. The two-hour duration facility operates under a long-term power purchase agreement with an investment-grade off-taker, ensuring stable long-term revenue.
Structured financing to accelerate deployment
The project’s financing was led by Norddeutsche Landesbank Girozentrale (Nord/LB) and MUFG Bank, acting as co-lead arrangers. The structure includes a tax equity bridge loan, construction-to-term loan, and letters of credit. A traditional tax equity partnership was also used, reflecting a combination of debt and federal incentive structures to speed up the facility’s deployment.
Nightpeak Energy submitted Bocanova Power’s interconnection request in mid-2023. Two years later, the facility is operational, demonstrating the company’s ability to quickly deliver complex energy infrastructure.
Strategy focused on dispatchable capacity expansion
Founded in 2022, Nightpeak Energy currently operates 240 MW of combined energy storage and natural gas generation capacity. The company is focused on Texas and the Western United States, where the growth of intermittent renewable energy has created a critical need for flexible assets capable of responding to grid fluctuations.
This focus also addresses rising electricity demand driven by the expansion of data centres and industrial sites. Nightpeak Energy executives highlight the urgency of deploying dispatchable resources to meet growing demand and ensure grid stability across key U.S. markets.
Financial partners’ role in project development
MUFG Bank, administrative agent for the financing, stated that the project demonstrates how international banks can support local energy infrastructure while contributing to regional economic growth. Nord/LB also played a key role in structuring the financing, enabling the rapid deployment of battery storage capacity in a strategic Texas location.
Nightpeak Energy is continuing to expand its portfolio of storage and generation projects, with additional infrastructure planned to meet grid needs in Texas and the Western U.S.
