Lydian Energy Secures $689M for 3 US Solar, Battery Storage
- Energy Storage News Solar + Storage Integration
Marin Holt
- 0
- 4 minutes read
- Financing Amount: $689 Million
- Utah BESS Capacity: 150 MW / 733 MWh
- Solar Projects: 245 MWac (NM + TX)
- Lead Lenders: CIBC & MUFG Bank
Lydian Energy announced in February 2026 the closure of $689 million in full-stack project financing for three renewable energy projects across New Mexico, Texas, and Utah. The financing package covers construction-to-term loans, tax credit bridge loans, co-investment bridge loans, and a letter of credit facility, supported by Canadian Imperial Bank of Commerce (CIBC) and MUFG Bank.
Three Projects Spanning Three States
The financing covers three distinct projects at different stages of development. Faraday BESS Phase 1 in Utah delivers 150 MW and 733 MWh of battery energy storage, backed by a long-term power purchase agreement with PacifiCorp, a Berkshire Hathaway Energy subsidiary. AC Ranch 1 in New Mexico adds 75 megawatts-AC of solar generation under a fully contracted, investment-grade off-taker PPA that ensures steady cash flows from the start of operations. Yellow Viking in Texas brings 170 megawatts-AC of solar capacity into the ERCOT market within the Oncor utility territory, with 100 MW already under a PPA with an investment-grade counterparty.
Why It Matters
The multi-project financing structure reflects how independent power producers are managing the capital stack for mixed portfolios of solar and storage simultaneously. Rather than financing each project in isolation, Lydian secured a single multi-instrument facility across all three assets — a model that reduces transaction costs and speeds deployment timelines. The Utah BESS project’s tie to PacifiCorp, one of the largest utilities in the western United States, signals growing utility demand for four-hour-plus storage contracts in markets where wind and solar penetration are creating mid-day curtailment and evening ramp challenges. Lydian’s broader portfolio now spans 18 projects and 4.4 gigawatts of capacity, positioning the company as a significant developer in the next wave of US grid buildout.
Critical Perspective
Lydian Energy secured $689 million for three projects. This financing is comparable to other large-scale solar and storage developments, yet the article omits the specific cost per MW for the solar and per MWh for the storage. The 2017 SunEdison bankruptcy demonstrated how complex financing structures can mask underlying project economics. What is the projected internal rate of return for these projects under the stated PPAs and tax equity assumptions?
