Executive summary
A 302 MW standalone battery storage project in Oklahoma has secured $280 million in financing from Deriva Energy. The Frontier facility is expected to become the largest battery in the Southwest Power Pool region upon completion in late 2027. Oklahoma Gas & Electric will acquire the completed project under a build-transfer agreement.
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A $280 million financing close has advanced Deriva Energy's 302 MW Frontier Energy Storage project in Kay County, Oklahoma, where the standalone battery energy storage system (BESS) is expected to become the largest battery facility in the Southwest Power Pool (SPP) region upon completion. Deriva Energy, a renewable independent power producer (IPP) and Brookfield portfolio company, announced the financing on October 12, 2026, with mechanical and substantial completion targeted for late 2027.
The project has already achieved several development milestones, including commercial contract execution, regulatory approvals and the commencement of construction activities. The financing will support construction of the facility, which is being developed under a build-transfer agreement (BTA) with Oklahoma Gas & Electric.
Under the agreement, Deriva Energy will sell the completed Frontier Energy Storage facility to Oklahoma Gas & Electric. This arrangement separates project development and construction from long-term ownership, with Deriva responsible for advancing the facility before transferring it to the utility. Proceeds from the transaction will be reinvested into Deriva's pipeline of late-stage renewable energy projects.
Canadian Imperial Bank of Commerce (CIBC) and KeyBanc Capital Markets Inc. served as Coordinating Lead Arrangers and Joint Bookrunners for the financing. CIBC also acted as Administrative Agent. Skadden represented Deriva Energy as Borrower's Counsel, while Milbank served as Lenders' Counsel.
Thomas Hopkins, Senior Director and Head of Capital Markets & Treasury at Deriva Energy, said the transaction attracted strong lender interest and secured competitive financing terms, reflecting the quality of the project and its underlying commercial structure.
Paul Tivnan, Chief Financial Officer of Deriva Energy, described the transaction as evidence of the company's integrated development and financing capabilities and an important step in its growth strategy.
Frontier's planned 302 MW capacity highlights the scale of standalone battery storage development in the SPP region. Battery storage systems can support grid flexibility by storing electricity and releasing it when required. However, Deriva Energy has not disclosed Frontier's energy capacity in MWh, operating duration or specific grid services.
Deriva Energy has more than 18 years of renewable energy experience, with 7 GW of wind, solar and storage assets operating or under construction, alongside a multi-gigawatt late-stage development pipeline. As a Brookfield portfolio company, Deriva combines renewable energy development expertise with institutional backing.
The Frontier project brings together construction financing, a utility build-transfer arrangement and planned capital reinvestment, positioning the facility for completion in late 2027 while supporting Deriva Energy's broader renewable development strategy.