MicroGrid Networks (MGN) has secured an investment from Palisade Infrastructure that it will use to install battery energy storage systems (BESS) throughout the New York City area.
The funding, in partnership with SER Capital Partners, will allow MGN to advance current projects and expand its growth in the region.
MGN currently has over 250 megawatt hours (MWh) of BESS projects under construction and has established a large development pipeline across its sites.
Under the transaction, Palisade will invest in MGN’s operating and construction-stage projects and in the platform company. SER will retain a majority ownership stake and continue to actively support MGN along Palisade and the MGN management team.
“With Palisade’s added strategic capital, MGN can further leverage its deep local market expertise to scale the buildout of battery energy storage for added reliability throughout NYC and adjacent markets,” said MGN CEO Tim Dumbleton, in a statement.
The BESS facilities will help alleviate transmission congestion and enhance grid reliability by delivering localized and cost-effective energy capacity. The projects also support New York State and New York City’s clean energy and greenhouse gas reduction goals.
MGN continues to seek complementary acquisition opportunities, in addition to expanding its existing development pipeline.
Mike Reynolds, Partner and Head of Americas at Palisade, added, “New York City faces structural supply and reliability challenges that require flexible, localized energy infrastructure solutions. MGN’s technical expertise and proven development and operating capabilities position the company exceptionally well to address these needs.”
Guggenheim Securities served as financial advisor to MGN and SER, with Jones Day as legal counsel; A&O Shearman LLP provided legal counsel to Palisade.
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