ATLANTA, GA — Overlay Capital, a leading provider of interconnection capital for grid-connected energy assets, today announced the closing of a $10 million interconnection deposit financing facility supporting a utility-scale battery energy storage system (BESS) project in the ERCOT market.
Overlay's investment will fund interconnection deposit needs for a 300 MW / 600 MWh BESS project that is currently under exclusivity pursuant to a Letter of Intent with an institutional buyer. The project is expected to support grid reliability in the Dallas-Fort Worth area by providing additional storage capacity that helps alleviate localized congestion within ERCOT. Overlay's financing is designed to help preserve targeted commercial operation timeline while removing pressure to divest the asset on a truncated timeline.
Upon funding, the project will be added to Overlay's portfolio of more than 1.8 GW of infrastructure assets financed within the ERCOT territory, spanning both generation and load-side projects. Overlay continues to support developers by easing cash flow constraints, increasing project throughput, and enabling teams to remain focused on value creation throughout the development process.
As access to the grid increasingly becomes the critical pathway to project success across both generation and load, Overlay's non-dilutive financing structures enable developers to compete more effectively with large, vertically integrated market participants. In markets where speed and access to capital often determine outcomes, Overlay helps developers secure valuable queue positions, advance projects through interconnection, and bring more assets to fruition than would otherwise be possible using their own balance sheets.
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.