CIT Group has completed a third round of financing for an innovative battery-based energy storage project to boost renewable energy use in Southern California.
This latest financing agreement for Macquarie's Green Investment Group follows two earlier rounds led by CIT’s power and energy business, bringing combined CIT-led funding for the project to more than $160 million.
The loans support battery storage throughout the West Los Angeles Basin region, which totals about 63 megawatts across 89 different sites for 28 different host customers.
The combined battery storage is one of the largest ‘virtual power plants’ of its kind in operation. Energy stored in the batteries is released during periods of high demand, avoiding the need to use fossil fuel-generated power.
Mike Lorusso, managing director and group head of CIT's power and energy unit, said: “One of the biggest challenges facing renewable power is the lack of capacity to store clean energy until it's needed most.
“We were pleased to serve as lead arranger on financing that significantly advances the grid-connected battery storage infrastructure in Southern California.
“Businesses in the Southern California area increasingly depend on renewable power for their electricity.”