TagEnergy has achieved financial closure on its latest venture, the Pitkevy facility, located in Fife, Scotland. This marks the company's sixth battery energy storage system (BESS) project in the United Kingdom, further solidifying its commitment to sustainable energy initiatives.
The Pitkevy facility boasts an impressive capacity of 49.9MW/99.8MWh and was financed through a non-recourse green loan package amounting to £70 million. The lenders involved in this landmark financing arrangement include Santander UK, Rabobank, and Triple Point, who provided the funding on a fully merchant basis, excluding Capacity Market revenues.
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Originally secured to support TagEnergy's Lakeside BESS project in October 2023, the financing package featured an uncommitted accordion facility, allowing TagEnergy to seamlessly incorporate the Pitkevy project into its funding structure. Notably, this project represents TagEnergy's first split-contract endeavor, with Tesla supplying the Megapack 2 XL battery system, while contractor RJ McLeod undertakes the site works and installation of the battery containers.
To ensure efficient market access and optimal battery performance, TagEnergy has partnered with Flexitricity as its route to market and battery optimizer, while RES, an independent renewable energy company, has been appointed as the asset manager.
Regarding the Lakeside facility, the debt arrangement was orchestrated by IDCM as financial advisor, with legal advisory services provided by TLT and Burges Salmon for the borrower and lender, respectively. Additional support was provided by Aurora Energy Research as the energy analytics provider, Everoze as the technical advisor, WTW as the insurance advisor, Ester as the hedge advisor, and RSM as the model auditor.
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Franck Woitiez, Chief Executive at TagEnergy, expressed pride in securing this groundbreaking debt package and emphasized its significance in advancing TagEnergy's mission to stabilize the grid and accelerate the transition towards net zero emissions. He also highlighted the collaboration with trusted partners throughout the financing and operational phases, underscoring TagEnergy's dedication to expanding its renewable energy portfolio for the betterment of society and the environment.
