Crux has facilitated construction-to-term loan financing for an 8 MW/40 MWh battery energy storage project being developed by EnerSmart Storage at the University of California, San Diego (UC San Diego), in a move aimed at strengthening campus energy resilience and reducing electricity costs.
Announced on October 29, 2026, the financing involves a senior secured construction-to-term loan facility arranged by Crux. Crux is a capital platform specializing in clean energy and critical infrastructure. The battery energy storage system (BESS) will connect directly to the UC San Diego’s microgrid and is supported by a 10-year resource adequacy contract.
The project is designed to improve the UC San Diego’s ability to manage electricity demand. It will also support reliable power supply and reduce peak-demand costs. Its 40 MWh storage capacity will also allow it to store electricity and discharge it when needed. This will help balance campus demand and supporting the wider electricity grid.
UC San Diego battery storage project: Financing structure and development
Crux arranged the financing through a targeted capital-raising process. The capital platform secured then competitive debt and preferred equity proposals within three weeks. Transaction closed six weeks after the term sheet was signed. This goes to demonstrate how tailored financing arrangements can help move energy infrastructure projects towards construction.
The financing structure was also adjusted to accommodate changing project requirements. Crux worked with EnerSmart, the lender and legal counsel to increase the facility size and help bridge an equity grant. They also worked to absorb equipment cost increases associated with tariffs.
The arrangement also highlights the importance of flexible project financing in the battery storage sector. This is because equipment prices, grant funding and project requirements often change during battery storage development. Combining construction financing with longer-term debt arrangements can also help developers manage the transition from construction into operations.
According to Drew Venkatraman, Managing Director of Debt Capital Markets at Crux, the transaction demonstrates the value of flexible financing in bringing critical energy infrastructure to market.
EnerSmart Chief Operating Officer Skyler Tennis also highlighted the contributions of UC San Diego. The California Energy Commission and other public- and private-sector partners were also noted for bringing together financing, grant support and energy-market programs.
UC San Diego’s investment in campus energy resilience
The battery storage project in UC San Diego also builds on long-standing efforts to strengthen the campus’ microgrid and advance energy storage deployment. In September 2024, the university announced a California Energy Commission award of approximately US$7.15 million to support a major campus battery installation planned at 10 MW/40 MWh. The initiative was set to improve energy reliability and support renewable energy integration. It was also intended to contribute to California’s electricity grid stability.
However, the financing and ownership arrangements for the EnerSmart project have evolved. A California Energy Commission meeting transcript from February 2026 describes revisions to the earlier funding agreement. Some of the revisions include a third-party ownership arrangement for the first 10 years. According to the transcript, UC San Diego shares operational responsibilities before subsequently assuming ownership and operation.
Financing to support universities green transition
The newly announced EnerSmart financing is significant in two main ways. One, storage capacity; and two, the way public funding, private ownership and debt financing can be combined to support university energy infrastructure.
Other universities, including University of Wisconsin, Platteville and New Mexico State University are also taking steps to make their grids greener. Both campuses
Fact sheet for EnerSmart battery energy storage project at UC San Diego
Location: University of California, San Diego, California
Power capacity: 8 MW
Energy storage capacity: 40 MWh
Financing: Senior secured construction-to-term loan facility
Financing arranger: Crux
Project developer: EnerSmart Storage
Offtake/revenue support: 10-year resource adequacy contract
Grid connection: UC San Diego’s advanced campus microgrid
Primary objectives: Campus energy resilience, peak-demand cost reduction and electricity-system support.
Financing announcement: October 29, 2026
Who is involved in the UC San Diego battery storage project
Crux – Arranged the construction-to-term debt financing and coordinated the capital-raising process.
EnerSmart Storage – Battery storage project developer, owner and operator.
University of California, San Diego – Campus partner and operator of the university’s advanced microgrid.
California Energy Commission (CEC) – Public-sector funding partner. Also associated with the UC San Diego’s battery energy storage program.
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