NineDot Raises $225 Million Equity Financing for Battery Storage Projects

NineDot battery storage unit being installed

(Credit: NineDot)

by | Jan 11, 2024

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NineDot Energy has secured a $225 million equity capital commitment from Manulife Investment Management and Carlyle, expected to allow the company to advance battery storage projects in New York City, expand to new geographic locations, and explore potential acquisitions.

The funding round was led by Manulife Investment Management, with a $135 million commitment along with an equity interest. Through the new investment, combined with earlier commitments from CIT, SMBC, NY Green Bank, and others, the company has secured a capital base of about $400 million.

NineDot specializes in urban energy storage as a solution for a resilient power grid and to reduce reliance on emissions-heavy peaker plants, commonly used during high energy demand. The company has supported New York City as it works to meet 6 gigawatts of energy storage capacity by 2030, and it is on track to meet its own goal of 400 megawatts of storage projects in development by the end of 2026.

“We have been believers in community-scale battery storage for a long time and are pleased to form a long-term equity partnership with NineDot Energy,” said Recep Kendircioglu, global head of infrastructure for Manulife Investment Management. “We view NineDot as the leading BESS developer in a complex but attractive market. We look forward to supporting the team at NineDot as it executes on its growth pipeline in New York and scales its business.”

First NineDot Project Becomes Operational, Specifically Designed to Support Urban Grid

NineDot’s first battery storage site in a neighborhood of the Northeast Bronx became operational last summer, and the company has about 30 projects under construction throughout the New York Metro Area. Most projects are about 5 MW capacity and are designed to provide energy to 5,000 New York City households for four hours on a peak-demand summer day.

Carlyle, a long-term investor in NineDot, first backed the company in 2021, citing the company’s unique commitment to supporting New York’s energy transition.

As the city works to rapidly integrate renewable energy sources, its grid has reportedly become increasingly strained. The state’s clean energy supply is expected to triple in order to meet New York City’s goal of having an emissions-free electric system by 2040, and energy storage can offer energy security and backup power throughout the process.

NineDot said that its energy services may also reduce costs for its subscribers and the surrounding community by optimizing supply around timing, incentives, and technologies.

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