NineDot Energy, a New York-based developer of community-scale clean energy projects, closed a $25 million revolving Credit Facility with NY Green Bank, a division of the New York State Energy Research and Development Authority (NYSERDA). This facility is the first purely energy storage transaction by NYGB.
Installs battery storage sites in New Work
With this financing, the startup has raised over $150 million to date to acquire, develop and operate battery storage sites across the New York City boroughs, Westchester County and Long Island. NineDot’s first battery storage site is in the Northeast Bronx, and many sites under construction will become operational in the next 12 months.
In addition to supporting New York’s transition to cleaner, more sustainable energy sources, it is also consistent with NineDot’s goal of installing 400 megawatts by the end of 2026. For NY Green Bank, this transaction represents another step in its innovative financial support of New York State’s Climate Leadership and Community Protection Act (CLCPA) goal to develop 3000 megawatts of storage by 2030.
Initially, 14 NineDot battery storage sites will be covered by this facility, but that number is projected to grow to 40 projects or more, each up to 5 megawatts, in the coming years. From a decarbonisation perspective, if one of NineDot’s 5-megawatt batteries operated for all of 2022, it would have reduced emissions in the community by nearly 420 tons of CO2e.
“We’re excited, proud and grateful that such a forward-looking institution saw the value in helping us achieve our vision,” said David Arfin, NineDot Energy CEO and Co-founder. “We believe that climate change is the most critical issue of our time, and innovators like NineDot and NY Green Bank can work together to make a positive impact on the environment and the society in which we live and work. As we learned when we engaged with them previously, NY Green Bank is a smart, creative, and diligent partner willing to work with young companies doing innovative and important things.”
Andrew Kessler, NY Green Bank’s President, said, “We are thrilled to complete this innovative financing transaction with NineDot Energy in support of community-scale battery storage that is critical to New York’s decarbonisation efforts. We look forward to seeing these projects operating in support of a resilient future for New York City.”
Transition towards cleaner and more resilient grid
The company was founded by David Arfin, Adam Cohen and Nalin Kulatilaka in 2015 in Brooklyn, New York, at the NYUTandon School of Engineering Urban Future Lab. NineDot Energy creates urban energy solutions. It currently focuses on developing battery energy storage sites in the New York City metropolitan area while enabling solar systems and vehicle-to-grid (V2G) capabilities at many of future locations.
In addition to making the local grid more robust and helping to integrate more clean energy onto the grid, a 5-megawatt battery site can provide enough energy to power approximately 5000 New York City households for four hours on a hot summer day.
