Texas Microgrid, a company operated by Enchanted Rock (ERock), today announced an equity investment from Balfour Beatty Infrastructure Partners (BBIP) to build microgrids in Texas.
The financing will help fund the construction of 50 MW of microgrids already under contract with commercial and industrial (C&I) customers.
Founded in 2006, ERock is an engineering, procurement and construction company that builds and operates microgrids and helps customers manage physical and financial risk associated with electricity. The microgrids, which will use natural gas, will sell electricity and ancillary services into ERCOT, the Texas wholesale market.Texas #Microgrid Wins Equity Financing for 50 MW of microgrids in TexasClick To Tweet
ERock offers a product where customers pay only a small fraction of the installation cost of a standard reliability system. The company says that the structure shifts the performance and market risk to the operator and owner of the assets, allowing customers to focus time and capital on core business activities.
The company is responsible for the design, installation, and commissioning of projects totalling 225 MW, and field and market operations of 167 MWs for reliability sites, which ERock says represents the largest dispatchable distributed generation fleet in Texas.
Rob Gregor, BBIP managing partner, said that ERock offers a strong fit for its investment strategy.
“We were attracted by Enchanted Rock’s unique approach to providing reliable backup power while building long-term customer relationships,” he said. “We believe Texas Microgrid, with ERock’s innovative expertise in backup power and energy management, provides an attractive solution to customers who place a high value on electrical reliability.”
Texas Microgrid is BBIP’s second investment in North America, and fifth investment overall. Other investments by BBIP include Upper Peninsula Power Company in the U.S., along with McEwan Power, Wightlink Ferries and Alkane Energy in the U.K. The infrastructure equity investment fund focuses on investments in utilities, energy and transport infrastructure in the U.S., Canada and Europe.
“The BBIP team has shown a dedication to the space and an ability to think creatively to develop long term infrastructure projects with attractive returns,” said Thomas McAndrew, founding partner and managing director of Enchanted Rock. “We are proud to have them as partners and look forward to building out Texas Microgrid together.”
Bracewell acted as BBIP’s legal advisor for this transaction and Elder Bray & Bankler acted as Enchanted Rock’s legal advisor.
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