GridStor Secures $50 Million Letter of Credit Facility from NORD/LB to Advance Utility-Scale Battery Energy Storage Development
GridStor, a leading developer and operator of utility-scale battery energy storage systems (BESS), has announced the successful closing of a $50 million letter of credit (LC) facility with Norddeutsche Landesbank Girozentrale (NORD/LB). This financing arrangement represents a significant milestone in GridStor’s ongoing mission to expand its development pipeline, accelerate large-scale energy storage deployment, and strengthen the reliability of the U.S. electric grid.
The $50 million facility is designed to support GridStor’s growing development activities across North America, particularly in markets experiencing rising electricity demand from utilities, data centers, and other energy-intensive industries. By securing this financing, GridStor gains the flexibility to continue advancing projects through key development stages, ensuring that critical energy infrastructure is brought online more rapidly and efficiently.
Expanding GridStor’s Project Pipeline
GridStor’s development pipeline currently exceeds 3 gigawatts (GW) of utility-scale energy storage projects across the western and central United States. A substantial portion of these projects are already in late-stage development or under construction, positioning the company as a major player in addressing grid reliability and renewable energy integration challenges.
In 2025 alone, GridStor has executed 450 megawatts (MW) of late-stage project acquisitions in Texas, Oklahoma, and Arizona—states that are experiencing accelerated growth in electricity consumption due to both population expansion and the proliferation of large-scale data center operations. These acquisitions build on the company’s strategy of combining greenfield development with selective acquisitions to assemble a diversified portfolio of high-value energy storage projects.
Backed by Goldman Sachs Asset Management (GSAM), GridStor has demonstrated its ability to leverage financial strength and industry expertise in rapidly scaling operations. This support has allowed the company to pursue ambitious development goals, while simultaneously ensuring disciplined financial management and alignment with long-term sustainability objectives.
Strategic Importance of Battery Energy Storage
Battery storage systems are increasingly recognized as an essential component of the modern energy landscape. As intermittent renewable generation from wind and solar resources continues to rise, grid operators require reliable, dispatchable storage solutions to balance supply and demand.
GridStor’s utility-scale storage projects are designed to address precisely these challenges by:
- Stabilizing the grid during peak demand periods
- Providing backup power and resiliency services for critical infrastructure
- Reducing reliance on fossil-fueled peaker plants
- Supporting renewable energy integration by capturing excess solar and wind output and deploying it when needed most
The need for such systems has become particularly urgent as the rapid expansion of data centers—driven by cloud computing, artificial intelligence, and digital services—places unprecedented strain on the U.S. power system. Data centers require consistent, large-scale electricity supply, and energy storage is emerging as a key enabler of reliability and cost-effectiveness for these customers.
As Chris Taylor, CEO of GridStor, emphasized:
“We are proud to continue our partnership with NORD/LB as we develop battery energy storage projects across North America. We appreciate their commitment, which enables us to unlock the capital we need to accelerate projects to meet the urgent needs of utility and data center customers.”
NORD/LB’s Role as a Financing Partner
NORD/LB, one of Germany’s largest commercial banks, has a long-standing reputation as a global leader in renewable energy and infrastructure financing. With deep expertise in structured project finance, NORD/LB has increasingly expanded its role in supporting energy transition technologies, including wind, solar, and storage assets, across North America, Europe, and Asia-Pacific.
The newly established $50 million letter of credit facility with GridStor reflects NORD/LB’s continued commitment to enabling the next generation of grid solutions. Sondra Martinez, Head of Project Finance-Origination at NORD/LB, underscored the importance of this partnership:
“NORD/LB is pleased to continue our work with GridStor through leading the financing of a development LC Facility. We are excited to support GridStor’s growth as they continue to develop their pipeline of battery storage projects, bringing greater energy reliability to markets with high energy demand.”
This transaction builds upon an earlier collaboration between the two companies. In 2024, NORD/LB successfully closed a $55 million debt financing agreement with GridStor to complete development of the Goleta Energy Storage project, a 60 MW / 160 MWh stand-alone battery facility located in Santa Barbara County, California. That project remains a model for how strategic financing can accelerate the development of critical energy storage capacity.
Financial Strategy and Long-Term Growth
For GridStor, access to innovative and flexible financing tools is essential to achieving rapid project execution. Letters of credit, in particular, are critical in the development process, as they provide assurance to counterparties, utilities, and regulators that developers can fulfill their obligations during permitting, interconnection, and construction phases.
Frank Burkhartsmeyer, CFO of GridStor, highlighted how this facility aligns with the company’s financial strategy:
“We have taken proactive steps to ensure tax credit eligibility for our project pipeline, and we anticipate more later-stage project acquisitions to provide cost-effective solutions to utility and data center customers. Partnering with NORD/LB increases our agility to execute rapidly when we see new opportunities that align with our strategic goals.”
The company’s emphasis on tax credit eligibility reflects its careful alignment with federal incentives, particularly the Investment Tax Credit (ITC) provisions under the Inflation Reduction Act (IRA). By structuring projects to qualify for these incentives, GridStor enhances the financial viability of its portfolio while supporting broader policy goals to decarbonize the U.S. power sector.
Positioning in the Energy Transition
GridStor’s approach demonstrates the growing convergence between financial innovation and clean energy infrastructure. With more utilities, corporations, and large-scale energy users demanding reliable access to carbon-free electricity, companies like GridStor are positioned at the forefront of the energy transition.
The combination of:
- A robust project pipeline exceeding 3 GW
- Strategic backing from Goldman Sachs Asset Management
- Proven execution capabilities through acquisitions and greenfield development
- Strong financial partnerships with institutions such as NORD/LB
creates a powerful platform for continued growth. This alignment not only benefits GridStor’s stakeholders but also supports broader energy system resilience and decarbonization objectives across North America.
