Cypress Creek Closes $190m for Colorado Solar-Storage

• Cypress Creek secures $190M for Colorado 75‑MW solar + 50‑MW/200‑MWh storage, fast‑tracking hybrid power that boosts reliability beyond daylight as demand surges and states chase resilient, lower‑carbon grids.

Cypress Creek Renewables closed $190 million in financing for a 75‑MW solar project paired with a 50‑MW/200‑MWh battery energy storage system in Colorado, reaching financial close as it advances construction. The deal underscores investor appetite for hybrid renewable assets designed to deliver power and grid support beyond daylight hours amid rising demand in the region.

The project combines utility‑scale solar with four‑hour storage to shift generation and enhance reliability. Cypress Creek, a U.S. developer-operator, did not disclose lenders or a commissioning timeline. The Colorado installation is part of the company’s pipeline as states seek to cut emissions and bolster resilience.

How will Cypress Creek monetize and interconnect its 75‑MW solar‑plus‑storage in Colorado?

Monetization

• Long-term offtake: Secure a bundled PPA or tolling agreement with Xcel Energy (PSCo), Tri‑State G&T, or a Colorado muni/coop via recent all‑source RFPs, with capacity/ELCC payments for the solar‑plus‑storage configuration.
• Corporate hedge: Layer a virtual PPA for a slice of output/RECs to a corporate buyer seeking Colorado-located renewables, using a shaped or proxy generation structure to manage basis risk.
  
• Energy arbitrage: Charge off‑peak, discharge into Colorado’s late‑afternoon/evening peaks to capture on‑peak premiums and mitigate duck‑curve curtailments.
  
• Ancillary services: Bid bilateral agreements with the host utility for fast frequency response, regulation up/down, spinning reserve, voltage/VAR support, and ramping services using the 50‑MW/4‑hour battery.
  
• Capacity value: Earn accredited capacity via the utility’s ELCC methodology, with the battery qualifying for higher summer peak contribution than standalone solar.
  
• RECs: Deliver bundled RECs under the PPA to meet Colorado RPS/clean energy targets; sell excess or unbundled RECs if offtake only covers a portion of output.
• Tax incentives: Monetize a 30% ITC on solar and standalone storage (IRA), pursue bonus adders (energy community/domestic content if site/equipment qualify), and use transferability or a partnership‑flip tax equity to realize value; complement with depreciation (MACRS/bonus).
• Grid services/wires deferral: Offer non‑wires alternatives or peak‑shaving solutions to the utility if sited near constrained feeders/substations, with performance‑based payments.

Interconnection

• Queue entry: Apply in PSCo’s (Xcel Colorado) transmission interconnection queue under FERC’s LGIP for a single co‑located POI; undergo feasibility, system impact, and facilities studies (including affected‑system reviews with Tri‑State, WAPA, or Platte River if relevant).
• Agreement: Execute an LGIA detailing network upgrades, cost responsibility, milestone schedule, and deliverability tests to qualify for capacity accreditation.
• Configuration: Use AC‑coupled architecture with a shared step‑up transformer and one POI to allow the battery to provide grid services independent of PV output and to absorb PV clipping.
• Upgrades: Fund required network upgrades (e.g., relay/protection, breaker additions, potential 115‑kV/230‑kV substation work); seek transmission credits or reimbursement per LGIA terms.
• Metering/telemetry: Install revenue‑grade meters for PV and BESS, SCADA/EMS telemetry meeting PSCo/WECC standards, and implement ride‑through/volt‑VAR per utility settings.
• Deliverability: Complete deliverability and transient stability testing to secure capacity value and minimize curtailment risk; incorporate Remedial Action Schemes if required.
• Compliance/timeline: Coordinate EPC schedule with study milestones, outage windows for cut‑ins, and commissioning tests (NERC PRC/VAR, UFLS/UVLS settings) to achieve COD aligned with offtake start.