TagEnergy, a prominent renewable energy company, has successfully reached financial close on its latest battery energy storage system (BESS) project in Fife, Scotland. The Pitkevy facility represents TagEnergy’s sixth BESS project in the United Kingdom and is a significant step towards the company’s goal of expanding its renewable energy footprint in the country.
The Pitkevy facility, boasting a capacity of 49.9MW/99.8MWh, was financed through a non-recourse green loan package of up to £70m. Santander UK, Rabobank, and Triple Point, leading lenders in the renewable energy sector, provided the financing on a fully merchant basis, except for Capacity Market revenues. This innovative financing model enables TagEnergy to bring stability to the grid and accelerate the energy transition towards net zero without the need for a revenue floor.
To ensure the success of the Pitkevy project, TagEnergy has collaborated with a group of trusted partners. Tesla has contributed to the project by providing its Megapack 2 XL battery system, renowned contractor RJ McLeod has overseen the site works and installation of the battery containers, and Flexitricity has partnered as the route to market and battery optimizer. In addition, independent renewable energy company RES has been appointed as the asset manager, ensuring the effective management and operation of the facility.
The financing structure for the Pitkevy facility was initially secured to support TagEnergy’s Lakeside BESS project. However, the flexible nature of the package, which includes an uncommitted accordion facility, allowed TagEnergy to incorporate the Pitkevy project seamlessly.
Franck Woitiez, the Chief Executive at TagEnergy, expressed his pride in leveraging this landmark debt package to bring another facility to life. He emphasized the company’s commitment to grid stability and the acceleration of the energy transition towards a net-zero future. By expanding its secured portfolio to 320MW, TagEnergy is making a significant contribution to achieving the UK’s renewable energy targets and benefiting society and the environment as a whole.
In conclusion, the completion of the Pitkevy Battery Energy Storage System represents an important milestone for TagEnergy. Through innovative financing and strategic partnerships, the company continues to lead the way in renewable energy expansion and grid stability, contributing to a sustainable future for the UK.
FAQ:
1. What is the latest project reached by TagEnergy?
TagEnergy has successfully reached financial close on their latest battery energy storage system (BESS) project in Fife, Scotland, called the Pitkevy facility.
2. How many BESS projects has TagEnergy completed in the United Kingdom?
The Pitkevy facility is TagEnergy’s sixth BESS project in the United Kingdom.
3. How was the Pitkevy facility financed?
The Pitkevy facility was financed through a non-recourse green loan package of up to £70m, provided by Santander UK, Rabobank, and Triple Point on a fully merchant basis.
4. Which partners have collaborated with TagEnergy for the Pitkevy project?
For the Pitkevy project, TagEnergy has collaborated with partners such as Tesla, who provided their Megapack 2 XL battery system, RJ McLeod, who oversaw site works and installation of battery containers, Flexitricity, who partnered as the route to market and battery optimizer, and RES, who has been appointed as the asset manager.
5. How does the financing structure of the Pitkevy facility support TagEnergy?
The financing structure for the Pitkevy facility, initially secured for TagEnergy’s Lakeside BESS project, includes an uncommitted accordion facility that allows TagEnergy to incorporate the Pitkevy project seamlessly.
6. What is the capacity of the Pitkevy facility?
The Pitkevy facility has a capacity of 49.9MW/99.8MWh.
7. What is TagEnergy’s goal with the Pitkevy facility?
The Pitkevy facility represents a significant step towards TagEnergy’s goal of expanding its renewable energy footprint in the UK and contributing to the country’s renewable energy targets.
Key Terms/Jargon:
– BESS: Battery Energy Storage System
– Non-recourse green loan: A type of loan specifically designed for renewable energy projects, where lenders have no recourse to the borrower’s other assets if the project defaults.
– Merchant basis: Financing provided without a guaranteed revenue floor, relying on market prices and revenues for the project’s success.
– Capacity Market revenues: Revenues earned by a power plant for committing to being available to meet electricity demand during times of system stress.
– Megapack 2 XL: A battery system provided by Tesla.
– Asset manager: A company responsible for managing and operating the asset, in this case, the Pitkevy facility.
– Grid stability: Refers to the balance between electricity supply and demand, ensuring a reliable and consistent flow of power.
– Net zero: A state where greenhouse gas emissions are balanced by removing an equivalent amount of emissions from the atmosphere.
Related Links:
– TagEnergy Official Website
The source of the article is from the blog mgz.com.tw