SinoLoanHub: Expert Business Loan Solutions for North American CompaniesRenewable energy developer DESRI (D.E. Shaw Renewable Investments) has submitted an $80 million loan application to the North American Development Bank (NADBank) to finance its 150MW solar + 150MW/600MWh battery storage project in Doña Ana County, New Mexico. This marks DESRI’s latest strategic move to solidify its position as a leading developer of hybrid renewable energy systems across the U.S. Southwest.
Project Overview: Santa Teresa Solar+Storage
The Santa Teresa Solar+Storage Project, located just 5 miles west of El Paso, Texas, will occupy 970 acres and feature:
- 150MW photovoltaic solar array using next-generation bifacial modules
- 600MWh battery energy storage system (BESS) utilizing 156 lithium iron phosphate (LFP) battery units
- Grid interconnection through El Paso Electric’s (EPE) Verde substation
- Dual EPC contracts currently under negotiation (solar farm vs. BESS specialization)
- Targeted commercial operation date (COD): June 2026 (18-month construction timeline)
DESRI acquired the project in October 2024 from original developer Hecate Energy, which failed to meet contractual deadlines with EPE due to pandemic-era supply chain disruptions. The transfer included revised technical specifications—notably DESRI’s decision to upsize the storage capacity from the initially planned 260MWh to 600MWh, reflecting growing market demand for flexible capacity in the ERCOT-adjacent region.
Financing Structure & Risk Assessment
NADBank—the U.S.-Mexico bilateral institution established in 1994—has preliminarily assessed the loan as presenting “acceptable risk levels,” aligning with its $60 million financing of Recurrent Energy’s Texas BESS project in September 2024. Key financial mechanisms include:
- Non-Recourse/Limited-Recourse Loan: Covers funding gaps until COD, with repayment tied to:
- Energy sales via potential new offtake agreements (PPAs currently under negotiation)
- Renewable Energy Credit (REC) monetization
- Federal Investment Tax Credit (ITC) claims under IRA provisions
- Potential participation in ERCOT ancillary services markets
- Long-Term Service Agreement (LTSA): DESRI is finalizing third-party maintenance contracts to ensure BESS performance guarantees, a critical factor for lender confidence.
Regional Context & DESRI’s Growth Trajectory
The Santa Teresa project complements DESRI’s existing New Mexico portfolio, including the 130MW Carne Solar+Storage facility currently under construction. The developer is simultaneously advancing its 225MW Catclaw Solar + 250MW/1000MWh BESS project in Arizona (acquired from Avantus in Q4 2024), demonstrating a clear focus on the Southwest’s high-growth renewable markets.
Corporate Backing: DESRI’s expansion benefits from Macquarie Asset Management’s (MAM) $1.73 billion minority stake acquisition in September 2024, providing substantial capital for its 11GW+ U.S. portfolio across 24 states.
Challenges & Market Opportunities
While the Santa Teresa project inherits legacy delays from Hecate Energy’s tenure, DESRI’s track record in executing complex projects positions it favorably to meet the 2026 deadline. The enlarged storage capacity strategically addresses:
- EPE’s need for evening peak demand management
- ERCOT’s growing ancillary services requirements
- New Mexico’s 100% clean energy mandate by 2045
Industry analysts note that DESRI’s dual approach—acquiring stalled projects while securing NADBank’s border-region focused financing—creates a competitive edge in a crowded solar+storage market.
