Lydian Energy has successfully secured $689 million in project financing to develop two major solar facilities and a battery energy storage system (BESS). This marks a significant financial milestone for the Washington, D.C.-based independent power producer as it advances its footprint in the renewable energy landscape across the United States.
The financing, described as a "full-stack" package, was led by global lenders CIBC and MUFG. It includes a Construction-to-Term Loan, Tax Credit Bridge Loan, Co-Investment Bridge Loan, and a Letter of Credit Facility. With this financial backing, Lydian plans to advance three utility-scale projects: AC Ranch 1 in New Mexico, Yellow Viking in Texas, and Faraday BESS in Utah. Notably, this is Lydian’s first full-stack financing effort, setting a precedent for future expansions in its development pipeline.
"Partnering with established global lenders establishes a precedent for future financings across Lydian’s development pipeline", said Emre Ersenkal, CEO of Lydian Energy.
The funding is set to fuel two pivotal solar projects that will enhance Lydian’s presence in renewable energy corridors in the Southwest and Texas.
The AC Ranch 1 project in New Mexico is designed to be a 75 MWac / 100 MWdc solar photovoltaic facility. It is underpinned by a busbar power purchase agreement (PPA) with an investment-grade offtaker, ensuring predictable and stable revenue streams. Its strategic location in a region with strong solar resources will contribute to reliable energy generation over the long term.
In Texas, the Yellow Viking project will bring a 170 MWac / 210 MWdc solar PV facility to the ERCOT market’s Oncor territory. Of this, 100 MW is already secured under a PPA with an investment-grade offtaker. Texas continues to offer significant opportunities for renewable development due to rising energy demand and competitive market structures, making Yellow Viking a key project in Lydian’s expansion strategy.
Together, these solar developments reinforce Lydian’s focus on securing contracted revenues with creditworthy counterparties while expanding its operational presence in some of the country’s most active renewable energy markets.
In addition to solar energy, the financing also supports Faraday BESS Phase 1, a utility-scale battery energy storage system in Utah. This facility will have a capacity of 150 MW / 733 MWh and is backed by a long-term PPA with an investment-grade offtaker. Designed to store excess renewable energy and provide dispatchable power during peak demand, the Faraday BESS project is a critical step in strengthening grid reliability in a region with increasing renewable energy penetration.
"Utility-scale battery storage continues to play an increasingly central role in balancing intermittent renewable generation", the announcement noted. This project complements ongoing renewable energy buildouts in the Western United States while addressing long-term grid flexibility needs.
Lydian Energy’s latest projects are part of its broader development portfolio, which currently includes 18 solar and storage projects totaling 4.4 GW of capacity across North America. Backed by clean energy infrastructure investor Excelsior Energy Capital, the company focuses on mid- to late-stage renewable energy assets.
Chris Moakley, Co-Founder and Managing Partner at Excelsior Energy Capital, highlighted the importance of these initiatives, stating, "The projects are delivering reliable, affordable domestic energy and supporting continued growth in the clean energy sector."
With this new financing in place, Lydian Energy is poised to advance construction on these significant projects, further contributing to the United States’ transition to renewable energy.
