Pathway Power secures $150M senior-secured financing from AB CarVal for grid-scale battery storage
What's the deal? Pathway PowerDealroom has a profile for this one. Try Dealroom →, a San Diego-based energy company founded in 2022, has secured $150 million in senior-secured financing from AB CarValDealroom has a profile for this one. Try Dealroom →, an investment management firm. The capital will fund late-stage development of Pathway's hybrid and battery energy-storage system (BESS) projects across US regional transmission organisation markets.
The money covers interconnection costs, power purchase agreements, equipment deposits, and pre-construction and construction equity. AB CarVal also made a separate equity investment in Pathway Power, though the amount was not disclosed.
Pathway's portfolio spans 13 hybrid and BESS projects with a combined capacity of roughly 3.2 gigawatts. Key target markets include the Southwest Power Pool and the Midcontinent Independent System Operator.
Why now? US electricity demand is surging, driven by data centres, reshoring of manufacturing, and broader electrification. Grid operators need new sources of flexible, dispatchable power — and battery storage paired with solar fits that bill.
Pathway's management team has completed over 70 mergers and acquisitions and developed 40GW of projects over the past two decades, giving it the track record to move quickly as demand accelerates.
What could go wrong? Battery storage projects face a gauntlet of risks: lengthy interconnection queues, permitting delays, supply-chain bottlenecks for lithium-ion cells, and shifting federal energy policy. Pathway is also a young company — founded just three years ago — scaling an ambitious pipeline in a competitive market.
Revenue depends on securing power purchase agreements and merchant price exposure, both of which can be volatile as more storage capacity comes online.
The signal: Pathway Power's leap from founding in 2022 to securing $150 million in senior-secured financing underscores how quickly capital is chasing grid-scale storage assets in the US. Dealroom classifies the company as a "breakout" — notable for a firm barely three years old — while backer AB CarVal operates as a corporate investment arm, suggesting that institutional players increasingly view battery storage not as venture-stage risk but as infrastructure-grade deployment. With 3.2GW in the pipeline targeting undersupplied RTO markets like SPP and MISO, the bet is that storage capacity will be absorbed as fast as it can be built.
Read more: Third News
