Average reading time for this story is 2 minutes
SMT Energy LLC is an experienced developer and operator of renewable energy and energy storage projects in America. It has signed an agreement with SUSI Partners AG (“SUSI”) a leading Swiss sustainable energy infrastructure fund manager to develop, own, and operate multiple battery storage systems (“BESS”) in the United States.
SUSI-SMT is a partnership that consists of a portfolio of ten (10) standalone BESS projects in South Texas. The combined capacity of the 10 projects is 100 MW. These assets will be commercially available in the first half 2023. They will help alleviate power grid pressure by balancing electricity demand and supply. The partnership also includes a capital commitment to further BESS projects.
David Spotts (Co-Founder of SMT) noted that this portfolio and partnership with SUSI is a key part of SMT’s efforts to lead U.S. energy transition in battery storage development. This portfolio will be put into service to support SMT Energy’s commitment to the development of clean energy infrastructure in the ERCOT. It also signals our continued expansion into BESS markets.
The electricity grid in Texas has been subject to intense scrutiny due to both extreme summer temperatures and winter storms. These challenges are only going to get more frequent as climate change advances. Despite the fact that renewable energy generation has been a valuable resource in recent spikes of power demand, the integration of this energy has outpaced the building of energy storage capacity. This is critical to counteract intermittent power supply. Further increasing the need for storage are the pending retirements in thermal generation plants. These plants will likely keep volatility high through 2020.
John Switzer, co-founder of SMT stated that the company was able to turn this portfolio from ideation into shovel-ready in just over a year. The goal was to have and manage a fully-merchantable, front-of-the-meter energy storage portfolio in Texas. It took the right partner for us to realize our vision. SMT thanks the SUSI team and looks forward to the partnership as a springboard to further BESS projects in the U.S.
Richard Braakenburg is Head of Equity Investments for SUSI Partners. He stated, “SUSI Partners has an extensive track record of investing across all aspects of the energy transition spectrum. After deploying our dedicated energy storage fund last summer, this equity fund investment continues our commitment to battery storage. It is an important enabler for renewables integration. We see great potential in the U.S. and we look forward to working with SMT Energy to provide clean energy solutions for the world’s biggest economy.”
Piper Sandler & Co. was the exclusive financial advisor for SMT in this transaction.