ENERGY STORAGE

TagEnergy reaches £70m financial close on 99MWh UK BESS

February 20, 2024

TagEnergy has reached financial close on the 49.9MW/99.8MWh Pitkevy facility in Fife, Scotland, its sixth battery energy storage system (BESS) project in the UK.

The project was financed under a non-recourse green loan package of up to £70 million provided by lenders Santander UK, Rabobank, and Triple Point “on a fully merchant basis, except for capacity market revenues” a TagEnergy statement said.

“The package, originally secured to finance the construction and operation of TagEnergy’s Lakeside BESS project in October 2023, included an uncommitted accordion facility, enabling TagEnergy to incorporate Pitkevy into the funding structure,” the statement added.

It is TagEnergy’s first split-contract project, with Tesla providing the Megapack 2 XL battery system, and contractor RJ McLeod executing the site works and installation of the battery containers.

Meanwhile, Flexitricity will act as route to market and battery optimiser, while renewable energy company RES has been appointed as asset manager.

As for the Lakeside facility, the debt was arranged by IDCM as financial advisor, with TLT serving as borrower legal advisor, Burges Salmon as lender legal advisor, Aurora Energy Research as energy analytics provider, Everoze as technical advisor, WTW as insurance advisor, Ester as hedge advisor, and RSM as the model auditor.

Franck Woitiez, CEO of TagEnergy said, “We are proud to leverage this landmark debt package – secured without a revenue floor under our innovative financing model – to bring another facility to life as we work to add stability to the grid and accelerate the energy transition towards net zero.”

Carol Kort, executive director project finance at Rabobank added: “Rabobank is delighted to continue our support to TagEnergy’s further growth with this increased financing package. Financing BESS assets such as Lakeside and Pitkevy, which will help stabilise the UK grid enabling further renewable energy build out, sits at the core of Rabobank’s banking for the energy transition strategy.”

Mark Cumbo, director, specialised and project finance at Santander UK said: “Santander UK is delighted to have supported this transaction and the continued growth of the TagEnergy UK BESS portfolio. We look forward to supporting the Pitkevy project through construction into operations. Further investment in assets such as Pitkevy remains critical for the UK in enabling greater generation from renewable energy assets and to meeting its net zero commitments.”

Jan Libicek, investment director at Triple Point, said: “We are thrilled to strengthen our partnership with TagEnergy and contribute to the expansion of the BESS sector in the UK. Our commitment to funding new BESS developments stands at the forefront of our strategy to foster a decarbonised energy grid. This collaboration highlights our mutual dedication to advancing the UK’s journey towards a cleaner, sustainable, and more resilient energy future.”

Andy Lowe, CEO at Flexitricity, said: “TagEnergy is driving change in the clean energy sector and we are delighted to now contract with them, having been working in partnership for a number of years. BESS projects like Pitkevy have a vital role to play in the UK energy transition and we’re confident that our advanced machine learning expertise and trading capabilities will deliver market-leading value.”

Construction has commenced and the BESS is scheduled to be operational at the end of 2024.

TagEnergy acquired its 100 per cent stake in the battery storage facility from Intelligent Land Investments Group Plc in October 2022.