NEW YORK, March 26, 2019 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that it has completed a third round of financing for an innovative battery-based energy storage project that helps facilitate greater use of renewable energy in Southern California.
This latest round of financing for Macquarie's Green Investment Group follows two earlier rounds led by CIT's Power and Energy business, bringing combined CIT-led financings for the project to more than $160 million.
The loans support behind-the-meter battery storage throughout the West Los Angeles Basin region. All told, the project comprises a total of about 63 megawatts / 340 megawatt-hours of battery storage across 89 different sites for 28 different host customers.
Taken together, the battery storage installed under this project constitutes one of the largest "virtual power plants" of its kind in operation. Energy stored in the batteries is dispatched during periods of high demand, avoiding the need to use fossil fuel-generated peaking power.
"One of the biggest challenges facing renewable power is the lack of capacity to store clean energy until it's needed most," said Mike Lorusso, managing director and group head of CIT's Power and Energy unit. "We were pleased to serve as lead arranger on financing that significantly advances the grid-connected battery storage infrastructure in Southern California.
"Businesses in the Southern California area increasingly depend on renewable power for their electricity. Battery projects like these also support the reliability of the grid," Lorusso added. "CIT's financing of this landmark project is another example of our ongoing commitment to supporting innovation and sustainable solutions in the energy sector."
The battery-storage projects were implemented by Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group, in collaboration with AMS.
CIT's Power and Energy unit is among the leading arrangers of secured loans for U.S.-based renewable energy projects. According to data compiled by Infamation, which closely tracks the energy project and infrastructure sector, CIT last year ranked second in the number of U.S. renewable energy projects financed.
Power and Energy, a part of the Commercial Finance division, leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience, approximately $50 billion in assets as of Dec. 31, 2018, and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, real estate financing, equipment financing, factoring and railcar financing. CIT's consumer banking segment includes its national online bank, CIT Bank, and a Southern California branch bank, OneWest Bank. Discover more at cit.com/about.
SOURCE CIT Group Inc.