$689 million financing package supports three U.S. solar and battery storage projects across New Mexico, Texas, and Utah.
Backing from MUFG and CIBC reflects strong lender confidence in contracted renewable assets and tax credit structures.
Projects strengthen grid reliability and advance U.S. clean energy deployment aligned with state and federal decarbonization goals.
Lydian Energy has secured $689 million in financing to develop two utility scale solar projects and a major battery storage facility across the U.S. Southwest and Texas, expanding grid resilience and dispatchable clean power in regions facing rising electricity demand.
The financing, supported by MUFG and CIBC, includes a Construction-to-Term Loan, Tax Credit Bridge Loan, Co-Investment Bridge Loan, and Letter of Credit Facility. The capital stack enables construction and long-term operation of AC Ranch 1 in New Mexico, Yellow Viking in Texas, and the Faraday BESS battery storage project in Utah.
The transaction represents Lydian’s first full-stack financing structure, providing a template for future project funding as institutional lenders deepen exposure to contracted renewable infrastructure.
“This transaction marks a major milestone for Lydian Energy, as it is the first full-stack financing we’ve closed, and it’s especially notable to do so with industry-leading lenders MUFG and CIBC,” said Emre Ersenkal, CEO at Lydian Energy. “We are excited about this significant financing, which creates a strong precedent for future investments across Lydian Energy’s pipeline and unlocks capital to support continued growth.”
Solar assets anchored by long-term contracts
AC Ranch 1, located in New Mexico, is a 75 MWac / 100 MWdc solar photovoltaic project backed by a busbar power purchase agreement with an investment-grade offtaker. The region’s strong solar resource supports predictable generation and stable quarterly cash flows.
Yellow Viking in Texas will add 170 MWac / 210 MWdc of solar capacity within ERCOT’s Oncor territory, one of the fastest-growing electricity markets in the United States. A 100 MW portion of output is contracted under a long-term PPA with an investment-grade buyer, reducing merchant exposure while retaining upside potential.
Contracted structures continue to attract lenders seeking stable returns, particularly as tax credit transferability and inflation-linked power pricing improve project economics.
Battery storage strengthens grid reliability
The Faraday BESS Phase 1 project in Utah will deploy a 150 MW / 733 MWh battery energy storage system designed to support grid stability and peak demand management. Backed by a long-term PPA with an investment-grade offtaker, the facility will provide dispatchable capacity to complement variable renewable generation.
Battery storage is becoming central to grid modernization strategies across Western states, where renewable penetration is rising and extreme weather events are increasing system stress.
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“We are proud that these financings are helping meet the need for reliable, sustainable, and affordable domestic energy and very grateful for the commitment of MUFG, CIBC, and other participating lenders,” said Chris Moakley, Co-Founder and Managing Partner, Excelsior Energy Capital and Chair of the Board at Lydian Energy. “We’re pleased to support Lydian’s talented team as they build these much-needed solar and battery storage projects.”
Policy alignment and investor implications
The projects advance U.S. decarbonization targets while supporting state-level reliability mandates and grid resilience priorities. Federal tax incentives under the Inflation Reduction Act continue to enhance project bankability, while battery storage is increasingly recognized as essential infrastructure rather than a supplementary technology.
For investors and lenders, the financing demonstrates sustained appetite for renewable assets backed by creditworthy offtakers and diversified revenue structures. The integration of storage alongside solar also reflects a shift toward dispatchable clean power solutions that can compete with conventional generation.
Scaling a 4.4 GW development pipeline
Lydian Energy’s portfolio now includes 18 solar and storage projects totaling 4.4 GW of capacity. The company continues to work with financial institutions, regulators, and local communities to deliver infrastructure aligned with regional energy needs and policy objectives.
As U.S. power demand rises due to electrification, industrial growth, and data center expansion, projects combining solar generation with battery storage are expected to play a critical role in stabilizing grids while accelerating emissions reductions.
The latest financing signals continued momentum for utility-scale clean energy investment, reinforcing the role of structured finance and long-term contracts in scaling the next generation of resilient power infrastructure.
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