Hudson Sustainable Group has successfully closed a $28.5 million senior secured financing for Heritage Energy Holdings, providing foundational capital for Heritage's distributed generation expansion across the Texas ERCOT market. Hudson acted as exclusive advisor and co-sponsor on the transaction, with financing provided by Eagle Point Credit.
The financing supports Heritage's strategy to develop and operate a network of sub-10 MW battery storage and solar projects across Texas, with dozens of locations already in progress.
Heritage operates as intergrated "Gen-Trailer" model, combining licensed retail electricity operations through its affiliation with Heritage Power, an independent power provider in ERCOT, alongside distributed generation and virtual power plant (VPP) capabilities.
The structure enables aggregation of distributed assets to achieve utility-scale impact while bypassing long interconnected queues and capturing value for market volatility.
The transaction also facilitates the acquisition and seamless transfer of safe-harbored battery assets to the Heritage platform.
Neil Z. Auerbach, Chairman and CEO of Hudson, said the firm worked closely with Heritage to structure a scalable platform integrating distributed assets with retail energy and VPP operations.
"We are proud to partner with Heritage to advance this platform," said Auerbach. "Heritage represents an innovative approach to distributed generation that addresses critical needs in the Texas energy market."
Auerbach made it a point to mention that the deal was led by Hudson partner Dustin Muscato, whose longstanding relationship with Heritage helped guide execution.
Tim Sanchez, Chief Executive Officer of Heritage, noted that Hudson's capital markets expertise was instrumental in executing the complex transaction under time pressure.
"Hudson's partnership was instrumental in achieving this financial milestone," said Sanchez. "Their deep understanding of both energy infrastructure markets and capital markets enabled them to structure and execute a complex transaction under significant time pressure."
The transaction highlights the growing demand within ERCOT for flexible distributed resources amid structural load growth. It positions Heritage and Hudson to scale an institutional-grade distributed energy platform designed to deliver reliable, cleaner power across Texas.
