Energy Spectrum Capital, a Dallas-based investment firm, has made an investment of up to $200 million in Nightpeak Energy, an energy company focused on powering communities toward a low-carbon future.

With Nightpeak’s recent formation, the leadership team looks to address the capacity and reliability needs of a decarbonized grid. The company also secured a letter of credit facility from a U.S.-based lender. With the funding and letter of credit facility, Nightpeak aims to continue its strategy of developing, owning and operating generation resources such as utility-scale batteries across the U.S. Energy Spectrum’s funding comes from Energy Spectrum Partners Fund VIII, the firm’s eighth fund with total capital commitments of approximately $1 billion.

“Nightpeak is a strategic addition to fund VIII to capitalize on the growing need for flexible and dispatchable generation to balance intermittency and strengthen the grid,” says Mike Mayon, partner at Energy Spectrum. “The Nightpeak team’s track-record of success developing energy storage and related assets fits well with our approach of identifying strong management teams to build companies that meet the needs of the evolving energy market.”