esVolta Secures 139.6 Million for 150 MW / 300 MWh Boxcar Energy

esVolta secured $139.6 million in project financing from MUFG Bank on March 24, 2026, for the Boxcar Energy Storage project. The facility, located in Wylie, Texas, will deliver 150 MW and 300 MWh of battery storage capacity to the ERCOT market, with a target commercial operation date in 2027.

What Is Being Built

The Boxcar Energy Storage project will comprise a battery energy storage system (BESS) with a power capacity of 150 MW and an energy capacity of 300 MWh. The financing package from MUFG Bank includes a construction loan, a tax equity bridge loan, letters of credit, and term loan facilities. These funds will support both the construction phase and the long-term operation of the facility. esVolta has secured a long-term offtake agreement with an unnamed major corporate customer for the project’s output.

Why It Matters

The addition of the Boxcar project will expand esVolta’s operational portfolio in Texas to five projects, totaling 1.56 GWh of storage capacity by 2027. This expansion aligns with the increasing demand for grid reliability and dispatchable energy in the ERCOT market, which is experiencing rapid load growth and volatility, according to esVolta’s Chief Financial Officer, Justin Johns. Battery storage is critical for balancing supply and demand, integrating renewable energy sources, and enhancing grid resilience in Texas. MUFG Bank, a leading project finance lender, stated its intent to strategically support projects in key markets like ERCOT, recognizing the importance of energy storage infrastructure for clean energy growth.

Critical Perspective

While esVolta highlights the growing demand from corporate customers and the need for grid stability, the long-term offtake agreement is with an unnamed entity. What are the specific terms of this agreement, and how does it guarantee revenue streams for the Boxcar project beyond the initial construction and operational phases? Without this information, it is difficult to fully assess the project’s long-term financial viability and its true impact on market dynamics.

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