- $1.5 billion revolving warehouse facility, with a $0.5 billion accordion feature, becomes one of the largest dedicated financings for a storage-focused independent power producer.
- Structure provides flexible capital to accelerate construction ready battery storage projects across U.S. power markets through 2028.
- Financing highlights growing lender confidence in energy storage as critical infrastructure for grid stability, renewable integration, and decarbonization strategies.
Capital Markets Backing Expands U.S. Energy Storage Pipeline
Aypa Power has closed a $1.5 billion construction warehouse revolving credit facility designed to accelerate the deployment of utility-scale energy storage and hybrid renewable energy projects. The financing, which includes an additional $0.5 billion accordion feature, will act as the company’s primary funding engine for assets expected to reach commercial operation by 2028.
The deal stands out in a crowded clean energy finance market. Structured specifically around battery storage development rather than generation assets alone, it reflects a shift in investor appetite toward technologies that balance renewable intermittency and support grid resilience. Backed by a consortium of major global lenders, the facility positions Aypa Power, a Blackstone portfolio company, to expand its construction-ready pipeline across key U.S. electricity markets.
“This market leading financing marks a significant milestone for Aypa Power and reflects the scale, quality, and readiness of our development portfolio,” said Moe Hajabed, Chief Executive Officer of Aypa Power. “The warehouse facility positions us to advance a growing pipeline of utility-scale energy storage projects and continue delivering critical infrastructure that strengthens grid reliability across U.S. markets. We are appreciative of the confidence that this large group of lenders has placed in our ability to execute at this scale.”
Financing Structure Reflects Evolving Green Loan Market
The three-year warehouse facility introduces a flexible funding model increasingly used in renewable infrastructure. Instead of financing individual projects separately, the revolving structure allows developers to draw capital across multiple assets as they move through construction milestones. For lenders, the approach diversifies risk across a portfolio while aligning with green loan frameworks tied to climate objectives.
Canadian Imperial Bank of Commerce and Wells Fargo served as Lead Structuring Agents and Green Loan Coordinators, alongside a wide syndicate of international banks. The breadth of participation signals strong institutional demand for energy transition exposure, particularly in infrastructure that directly supports renewable power deployment.
“CIBC is proud to have led the structuring and execution of this important construction warehouse facility, supporting continued growth in the utility-scale energy storage sector,” said Ines Serrao, Managing Director and Co-Head of US Project Finance & Infrastructure, Canadian Imperial Bank of Commerce. “The facility is structured to support a portfolio of construction-ready, utility-scale assets and highlights the strength of Aypa Power’s development discipline.”
From a governance perspective, the transaction reflects how financial institutions are integrating climate-aligned lending into mainstream infrastructure finance. Energy storage projects increasingly qualify under green financing frameworks because of their role in reducing curtailment, enabling renewable penetration, and supporting electrification strategies tied to national decarbonization targets.
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Storage Emerges As Core Pillar Of U.S. Grid Strategy
The financing arrives at a moment when U.S. power markets face rising demand from data centers, electrified transport, and industrial decarbonization initiatives. Policymakers and regulators have pushed for rapid expansion of battery capacity to manage peak loads and stabilize grids as renewable generation scales.
“Wells Fargo is proud to support Aypa in bringing this facility to market. This financing demonstrates the growing importance of large-scale energy storage as a core component of the U.S. power system,” said Alok Garg, Head of Project and Asset Finance at Wells Fargo.
Industry analysts increasingly view storage as essential infrastructure rather than a complementary technology. For independent power producers, warehouse facilities offer a path to faster deployment timelines, reduced financing friction, and greater flexibility to respond to evolving market signals.
What Executives And Investors Should Watch
For C-suite leaders and investors, the deal highlights several emerging trends shaping ESG-aligned infrastructure finance. First, capital markets are moving toward portfolio-level financing models that support rapid scaling of climate technologies. Second, lenders are treating storage as a strategic asset class with long-term revenue stability tied to capacity markets, grid services, and renewable integration.
The structure also reinforces how private capital is filling gaps left by traditional project-by-project funding, particularly as energy transition timelines accelerate under federal and state policy incentives. Large warehouse facilities allow developers to move quickly when interconnection approvals or power purchase agreements advance, a critical advantage in competitive markets.
As electricity systems evolve toward higher shares of intermittent renewable generation, transactions like Aypa Power’s facility illustrate how financial engineering is becoming as important as technological innovation. The growing alignment between infrastructure finance, grid policy, and decarbonization targets suggests that energy storage will remain central to global climate investment strategies well beyond this decade.
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