SAN FRANCISCO — Clearway Energy Group announced it has closed financing and commenced construction on the Spindle Energy Center, a 199-megawatt (MW) battery storage project in Weld County, Colorado.
Valued at $261 million, the project will deploy American-made two-hour battery systems supplied by Tesla, enabling storage of up to 398 megawatt-hours (MWh) of dispatchable electricity. The facility is designed to enhance grid flexibility and reliability, particularly during peak demand periods or renewable generation fluctuations.
“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.”
Long-Term Contract Strengthens Grid Reliability
The Spindle Energy Center is backed by a long-term agreement with Public Service Company of Colorado, a subsidiary of Xcel Energy. The agreement provides dispatchable, on-demand power capacity, supporting grid stability during extreme weather events and high-load periods.
As utilities across the West integrate more renewable generation, battery storage projects like Spindle play a critical role in balancing supply and demand. By storing excess energy produced during periods of low demand and releasing it during peak hours, the facility will help reduce strain on transmission systems and limit reliance on fossil-fuel peaker plants.
Spindle is expected to achieve commercial operations in late 2026.
Financing Structure and Construction Partnership
To finance the project, Clearway assembled a consortium of major lenders including U.S. Bank National Association, BBVA, KeyBanc Capital Markets, National Australia Bank Limited and Norddeutsche Landesbank Girozentrale. The structured financing package reflects continued institutional appetite for grid-scale battery storage investments.
Construction is being led by Blattner Energy and is expected to create nearly 80 local jobs during the build phase. Workforce demand includes electrical technicians, engineers, equipment operators and project management professionals.
The buildout will involve site preparation, battery installation, inverter integration and interconnection to the regional transmission system.
Economic and Community Impact
Beyond grid benefits, Clearway projects significant economic contributions to Weld County. The facility is expected to generate more than $12 million in tax revenue over its operational lifetime, supporting hospitals, schools, emergency responders and other public services.
The company has already allocated $125,000 in community donations to support local events, youth programs and the Weld Food Bank. Once operational, Spindle will provide $20,000 annually to community organizations.
These commitments align with Clearway’s broader strategy of pairing clean energy deployment with local economic development.
Expanding Clean Energy Portfolio
Clearway Energy Group, alongside its public affiliate Clearway Energy Inc., operates more than 13 gigawatts (GW) of gross generating capacity across 27 states. Its portfolio includes over 2.8 GW of flexible dispatchable power generation and 10.3 GW of battery storage, solar and wind assets.
As electrification accelerates and demand for reliable power grows, projects like the Spindle Energy Center reflect a broader industry shift toward grid-enhancing storage infrastructure that complements renewable energy expansion.
With construction now underway, the Colorado facility marks another milestone in large-scale battery storage deployment across the United States, reinforcing the state’s role in advancing energy transition and grid modernization efforts.
Originally reported by Clearway Energy Group in Utility Dive.
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