Crux and EnerSmart Storage have arranged a senior secured construction-to-term loan facility for an 8 MW/40 MWh battery energy storage system (BESS) project at the University of California, San Diego (UC San Diego) campus in the United States. The project is designed to strengthen campus energy resilience, improve electricity supply reliability and reduce peak-demand costs.
The battery storage system will connect directly to UC San Diego’s advanced microgrid and is supported by a 10-year resource adequacy contract. The project is intended to help the university manage electricity demand more efficiently while supporting grid reliability.
Financing Structure and Project Development
Crux, a capital platform serving the clean energy and infrastructure sectors, arranged the debt financing through a targeted capital-raising process. The company secured debt and preferred equity proposals within three weeks, with the transaction closing six weeks after the term sheet was signed.
The financing facility was increased to accommodate an equity grant and cover equipment cost increases associated with tariffs. Crux worked with EnerSmart, the lender and legal advisers to adjust the financing structure to meet the project’s changing requirements.
The transaction combines debt financing with grant support and energy-market programmes to support the development of the battery storage facility.
Battery Storage to Support Campus Energy Resilience
The 8 MW/40 MWh battery energy storage system will be integrated into UC San Diego’s microgrid, enabling stored electricity to be used during periods of higher demand. The system is expected to help reduce peak electricity costs and improve the campus’s ability to manage fluctuations in power supply and demand.
The project involves collaboration among EnerSmart, UC San Diego, the California Energy Commission and other public- and private-sector partners. Financing, grant support and participation in energy-market programmes form part of the project’s development framework.
Crux provides capital-raising and financing services for clean energy and critical infrastructure projects. Its offerings include debt advisory, investments, technology and market intelligence, as well as support for tax equity, preferred equity and transferable tax credits.
EnerSmart Storage, founded in 2019 and headquartered in San Diego County, California, develops, owns and operates utility-scale and behind-the-meter battery energy storage systems. Its projects are designed to support grid stability, balance electricity supply and demand, integrate renewable energy and reduce electricity costs.
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