TagEnergy has reached financial close on the Pitkevy facility in Fife, Scotland, its sixth battery energy storage system (BESS) project in the UK.
The 49.9MW/99.8MWh project was financed under a non-recourse green loan package of up to £70m, provided by lenders Santander UK, Rabobank, and Triple Point on a fully merchant basis (except for Capacity Market revenues).
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.
It is also 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.
Flexitricity partners as route to market and battery optimiser, while independent 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, chief executive at 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.
“Equally, we are pleased to be working with our trusted group of partners, from funding through to operations, to deliver the Pitkevy facility that takes TagEnergy’s secured portfolio to 320MW as we expand our footprint in the UK for the benefit of people and the planet.”