ATLANTA, GA — Overlay Capital, a leading provider of interconnection capital for grid-connected energy assets, today announced the closing of an interconnection deposit financing facility supporting the development of an approximately 306 MW utility-scale battery energy storage project in Texas.
Overlay's financing will support interconnection deposit requirements as Headwater Energy advances the project through the ERCOT development process. The facility is designed to preserve sponsor liquidity, maintain the project's queue position, and provide Headwater with additional flexibility as it progresses the asset toward construction-ready status.
The transaction expands Overlay's activity in utility-scale energy storage and reflects the firm's continued focus on financing critical development-stage infrastructure. Headwater brings a growing operating portfolio of over 400 MW and a development pipeline of approximately 2.6GW, demonstrating meaningful experience advancing large-scale storage assets. Battery storage is increasingly important to grid reliability, renewable integration, and the ability of power markets to respond to rapidly growing electricity demand.
As access to the grid becomes one of the primary constraints on new power generation and storage, Overlay's non-dilutive financing structures help experienced developers secure and maintain valuable interconnection positions. By providing dedicated capital for these requirements, Overlay enables development teams to preserve balance-sheet capacity and remain focused on advancing high-quality projects.
"Headwater brings a unique blend of a well-seasoned team with a disciplined approach to utility-scale energy storage development," said Eric Rubinstein, Managing Partner, Energy at Overlay Capital. "We are pleased to support the team as it advances an approximately 306 MW Texas battery storage project and continues building a portfolio designed to strengthen the power grid."
About Overlay Capital
Overlay Capital is an Atlanta-based asset manager investing across the spectrum from innovation to infrastructure, with a focus on financing overlooked and hard-to-access opportunities. Overlay invests in secular tailwinds and opportunities that shape the future of essential infrastructure in the built environment, with a commitment to superior risk-adjusted returns. For more information, please visit us at www.overlaycapital.com.
About Headwater Energy
Headwater Energy develops and owns utility-scale solar and battery energy storage projects designed to improve grid reliability, support renewable integration, and meet growing electricity demand. The company has an operating portfolio of approximately 417 MW and a development pipeline of approximately 2.6 GW, and advances projects through site control, interconnection, permitting, commercialization, and construction across key U.S. power markets.