Generate Capital PBC has been exploring strategic alternatives with respect to its ownership of battery energy storage platform esVolta, said sources familiar with the situation.

The fund manager acquired esVolta in June 2022 and the developer’s CEO Randolph Mann had talked to NPM recently about executing on a 1 GWh portfolio of near-term NTP-stage project in ERCOT.

However, the sources expressed skepticism about Generate’s future ability to support the platform given layoffs at its equity team and troubles raising additional third-party equity as it faces write-downs associated with its investment in Pine Gate Renewables.

Generate and its own co-investors led a USD 650m preferred investment into Pine Gate in April 2024 – a position that could end up severely impaired given the substantial amount of pre- and post-petition debt sitting ahead of it through Pine Gate’s bankruptcy process, filed on November 6.

Prior to the bankruptcy filing, Generate ousted its CEO and founder Scott Jacobs and replaced him with veteran energy executive David Crane. David Perl, who led the esVolta investment, left the company in August 2024 and is now at Summa Equity.

Generate declined to comment on the situation.

Mann shared some comments with NPM on Generate’s support of the company and future pipeline prospects but declined any additional comment on whether its sponsor was looking at strategic alternatives on its investment.

“Generate have been a great sponsor for the company, and supported us as the business has continued to scale up – today we’re about 1.7 GWh in operation plus construction, with a 25 GWh pipeline,” said Mann. He added that the company is “routinely talking to finance providers to support business growth, and so we are currently working with several banks on project finance loans for the next set of projects we are/will build.”

Mann previously identified the 150 MW Boxcar Storage project in Collin County, Texas as reaching notice-to-proceed (NTP) and others it will be bringing to NTP in the near term.

NPM SIGNALS identified the project which executed its third amended interconnection agreement with Oncor this past August, setting forth milestones including a scheduled commercial operation date of February 15, 2027.

Among esVolta’s accomplishments during Generate’s ownership of the company was raising non-recourse project financing and a preferred equity transaction, in July 2024 and January 2025, respectively, to support a 1 GWh portfolio of ERCOT assets.

It also obtained an upsized USD 170m credit facility from First Citizens to help complete its eFaraday storage portfolio in California.

The eFaraday portfolio carries value in a market where its difficult to develop storage assets and has also seen significant deal flow in 2025 for both storage and paired projects. Mann said he does not expect to pursue a partial or full sale of the assets at present.

“We are not currently looking to sell any material assets. We do view California storage projects as being valuable including our own, especially assets with permits, interconnection approvals, and deliverability,” added Mann.

*This story was originally published exclusively for NPM subscribers.