Lightshift Energy, a developer and operator of battery storage projects, has closed a $75mn financing agreement with KeyBanc Capital Markets, the investment banking subsidiary of KeyCorp. The credit facility aims to support the rapid expansion of the company’s project portfolio across the East Coast, covering both existing and new developments.
A modular financial structure to match growth
The financing includes several components, such as a term loan, a construction-to-term loan, and a tax equity bridge loan. This structure provides Lightshift Energy with flexible liquidity suited for the rapid deployment of large-scale projects.
The transaction initially targets six operational installations while enabling the launch of ten additional projects that are either under construction or nearing execution. This strategy aims to strengthen storage capacity in a region experiencing growing energy demand and stress on traditional power grids.
A strategic project in the semiconductor sector
Among the supported projects is Lightshift’s collaboration with GlobalFoundries in Vermont. This initiative is designed to power a semiconductor manufacturing plant while reducing capacity and transmission costs. Once commissioned in 2026, it will become the largest battery storage project in the state.
The project aims to demonstrate the effectiveness of co-located storage with industrial users. This configuration helps alleviate grid constraints while ensuring a reliable energy supply for high-demand sites.
Towards expanding the distributed storage portfolio
KeyBanc Capital Markets is the sole lender for this operation. The financing structure enables a rapid rollout of Lightshift’s projects, particularly in areas where data centres and large infrastructures require substantial energy.
Lightshift plans to significantly scale its distribution-level storage portfolio, working with utilities and industrial customers. The goal is to address current grid limitations with practical solutions amid rising load and flexibility requirements.
