Clearway Energy Group has reached a major milestone in its expansion of grid-scale storage, announcing the close of financing and the start of construction on a $261 million energy storage facility in Colorado. The Spindle Energy Center, located in Weld County, will provide 199 megawatts of capacity and help strengthen reliability for the region’s power grid.
The project will deploy American-made two-hour Tesla batteries capable of storing up to 398 megawatt-hours of dispatchable electricity. Company leaders say the facility will play a key role in balancing renewable generation and meeting growing demand across the state.
Long-Term Power Deal Drives Development
“Spindle represents a significant investment in Weld County’s energy future, delivering reliable storage and economic benefits to the region,” said John Woody, Chief Development Officer. “We are deeply grateful to our partners for their collaboration and look forward to continuing our work with the local community, our customer, and lenders.”
Spindle is contracted with Xcel Energy’s subsidiary in Colorado, Public Service Company of Colorado under a long-term agreement that provides the energy company with dispatchable, reliable power. The contract ensures that stored electricity can be deployed when demand peaks or when renewable output fluctuates, supporting Colorado’s broader clean-energy transition.
To finance the $261 million energy center, Clearway assembled a bank consortium consisting of U.S. Bank National Association, BBVA, KeyBanc Capital Markets, National Australia Bank Limited, and Norddeutsche Landesbank Girozentrale. The diverse lending group underscores growing investor confidence in large-scale battery infrastructure as a core component of modern power systems.
Clearway partnered with Blattner Energy on construction, which will create nearly 80 jobs. Local officials have highlighted the employment boost as an important benefit for Weld County, where energy development remains a major economic driver.
Community Investment and Grid Reliability
Spindle is expected to generate more than $12 million in tax revenue over the life of the project, supporting area hospitals, schools, emergency responders, and other public services. The project has allocated $125,000 in community donations to date, including support for numerous local events, youth programs and the Weld Food Bank. Once operational, the Spindle Energy Center will provide $20,000 in donations to community organizations each year.
Spindle is expected to reach commercial operations in late 2026. Once online, the facility will help integrate additional wind and solar resources across the Front Range by storing excess generation and releasing it during evening hours when demand typically rises.
Energy analysts note that Colorado has become one of the fastest-growing markets for battery storage as utilities seek alternatives to natural gas peaker plants. Projects like Spindle are designed to respond within seconds to grid needs, providing frequency regulation and backup power during extreme weather events.
About Clearway Energy Group
Clearway Energy Group’s vision is a world powered by clean energy. Along with our public affiliate Clearway Energy, Inc., our portfolio comprises over 13 GW of gross generating capacity in 27 states, including over 2.8 GW of flexible dispatchable power generation, 10.3 GW of battery energy storage, solar, and wind assets providing critical grid reliability services. As we develop a nationwide pipeline of new energy projects for the future, Clearway’s operating fleet generates enough reliable electricity to power more than 2 million homes today. Clearway Energy Group is headquartered in San Francisco with offices in Denver, Houston, Phoenix, Princeton, and San Diego.
Originally reported by CLEARWAY ENERGY GROUP.
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