TagEnergy secures £70m debt package for 200MWh UK battery

October 18, 2023

TagEnergy has secured a debt package of up to £70 million to finance a 100MW / 200MWh UK-based battery energy storage system (BESS) project.

The non-recourse debt package, which was provided by lenders Santander, Rabobank, and Triple Point on a fully merchant basis (except for capacity market revenues), will finance the construction and operation of TagEnergy’s Lakeside project in North Yorkshire in the UK.

The financing includes an uncommitted accordion facility with a view to incorporating further assets into the funding structure.

Coinciding with financial close, TagEnergy has announced Tesla, Habitat Energy and RES will be project partners on the scheme. 

Engineering procurement and construction (EPC) contractor Tesla will provide a system consisting of Tesla ‘Megapack 2XL’ lithium-ion batteries. Habitat Energy will act as route to market and battery optimiser, while RES has been engaged as asset manager.

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.

Construction commenced on the Lakeside project in August 2023 with the energy park due to go live by mid 2024. TagEnergy acquired its 100 per cent stake in the battery storage facility from RES in December 2021.

Franck Woitiez, CEO of TagEnergy said: “Securing a single non-recourse debt package without a revenue floor is testament to the value our innovative approach to financing offers the market. We’re excited to now move to the next stage of the project to accelerate the energy transition.”

Jon Doughty, Habitat Energy UK managing director, added: “TagEnergy shares our belief that the full value of battery storage lies in a merchant-first approach. We look forward to applying our award-winning technology and trading capabilities to maximise the performance of their innovative Lakeside project.”

Mark Cumbo, director, specialised and project finance at Santander UK commented: “Santander UK is delighted to have once again supported TagEnergy with funding for the construction and operation of a new BESS asset and supporting the growth of their activities in the UK. The investment in BESS assets in the UK, like Lakeside, are a key enabler for the increasing penetration of renewable generation assets and the wider Net Zero transition.”