Plus Power Secures $160 Million Tax Equity for New England's Largest Storage Projects

Plus Power Secures $160 Million Tax Equity for New England's Largest Storage Projects

Plus Power has closed a significant financing milestone with $160 million in tax equity investments from Morgan Stanley for two landmark battery energy storage systems in New England, marking a pivotal moment for the region's grid transformation. The financing includes $95 million for the 150 MW/300 MWh Cranberry Point facility in Carver, Massachusetts, which came online in May 2025, and $65 million for the 175 MW/350 MWh Cross Town facility in Gorham, Maine, expected to begin operations in late Q4 2025. These projects represent the largest standalone battery installations in the ISO New England territory and underscore the developer's expanding national footprint.

Financial Structure and Regional Significance

Combined with previously closed debt financing in 2024 from First Citizens Bank, Nord LB, Investec Bank, and Siemens Financial Services, Plus Power has raised over $290 million in total financing across both projects, including construction-to-term loans, tax equity bridge facilities, and letter of credit facilities. The scale of capital mobilization reflects growing investor confidence in standalone storage as a bankable asset class, particularly in markets with strong capacity obligations.

The Cranberry Point facility alone is helping Massachusetts reach roughly one-third of its goal to deploy 1,000 MWh of battery energy storage by 2025, demonstrating how individual projects can substantially advance state policy targets. Both facilities have secured Capacity Supply Obligations with ISO New England, providing revenue certainty through the region's forward capacity market—a critical element for project financing.

Strategic Context: ISO-NE's Storage Transformation

The Plus Power projects arrive at a crucial juncture for New England's energy transition. As of April 2025, energy storage represented 45% of the projects in ISO New England's interconnection request queue, with approximately 37,000 MW of total proposed capacity across the region. This overwhelming storage interest reflects both the retirement of conventional generation and aggressive state decarbonization mandates driving renewable integration needs.

ISO-NE recently launched its Transitional Cluster Study under FERC Order 2023, reviewing 26 interconnection requests including 21 battery energy storage projects, two solar, and three wind facilities—most located in Massachusetts. The new cluster-based approach aims to reduce queue backlogs while prioritizing projects with high development probability, creating a more efficient pathway for Plus Power and other developers to advance additional projects.

Plus Power's Expanding 2025 Portfolio

The New England financings cap a year of remarkable growth for Plus Power across multiple markets. In November 2024, the company announced that its 150 MW/600 MWh Corazon Energy Storage project secured a 20-year tolling agreement with Public Service Company of New Mexico (PNM), marking Plus Power's entry into its sixth state market. The project, located in Albuquerque with an anticipated late 2027 commercial operation date, will interconnect at PNM's centrally-located Pajarito Substation to store and dispatch renewable energy.

Plus Power's portfolio now includes 10 GW of projects across 28 states and Canada, with seven operating facilities in Arizona, Texas, and Hawaii totaling 1,650 MW/4,150 MWh. This geographic diversification strategy positions the developer across diverse market structures and revenue mechanisms—from capacity markets in ISO-NE to tolling agreements in the Southwest to energy arbitrage opportunities in ERCOT.

Notable operating assets include the 185 MW/565 MWh Kapolei Energy Storage facility in Hawaii, described as one of the world's most advanced grid-scale systems, which is helping Hawaiian Electric replace retired coal capacity. In Arizona, Plus Power operates the 250 MW/1,000 MWh Sierra Estrella Energy Storage facility—currently the state's largest standalone battery—under a 20-year contract with Salt River Project.

Supply Chain Advantage and Market Outlook

Plus Power's 2025 execution stems partly from strategic supply chain positioning. The company reportedly secured 6.5 GWh of battery supply for projects coming online through 2025, insulating itself from the supply constraints that have plagued competitors. This procurement foresight has enabled Plus Power to maintain construction timelines while other developers face delays.

Looking ahead, the regulatory environment in New England remains supportive despite transmission upgrade challenges. ISO-NE acknowledges that while significant investments are modernizing the transmission system to facilitate renewable integration, further upgrades will be necessary to handle the influx of diverse renewable resources. Recent NESCOE-directed transmission planning initiatives aim to increase transfer limits through Maine and accommodate 1,200 MW of new generation in northern Maine, creating additional opportunities for storage co-location and congestion relief services.

Market Implications

Plus Power's successful closure of tax equity financing for its flagship New England projects validates the standalone storage business model at scale. The company's ability to attract institutional capital from Morgan Stanley and leading European banks demonstrates that properly structured storage projects with capacity market revenues can compete for the same financing sources as traditional generation.

For developers eyeing New England's robust pipeline, Plus Power's approach offers a blueprint: secure strong capacity commitments early, diversify revenue streams through energy and ancillary services, and maintain rigorous project execution timelines. As ISO-NE's interconnection reforms take hold and state storage targets intensify, well-financed developers with proven operational track records will capture disproportionate market share in one of America's most ambitious decarbonization regions.