Global clean energy enterprise TagEnergy has secured a debt package to finance its next UK-based 100MW battery energy storage system (BESS) project.
The non-recourse debt package of up to £70m 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.
The deal also includes an uncommitted accordion facility with a view to incorporate further assets into the funding structure.
Coinciding with financial close, TagEnergy has announced Tesla, Habitat Energy and RES as project partners on the facility in North Yorkshire, England.
Engineering Procurement and Construction (EPC) contractor Tesla will provide a system of Tesla Megapack 2XL lithium-ion batteries.
Habitat Energy partners as route to market and battery optimiser, while independent renewable energy company RES has been engaged as asset manager.
Construction commenced on the Lakeside project in August 2023 with the energy park due to go live by mid 2024.
TagEnergy acquired its 100% stake in the battery storage facility – then its fifth investment in the UK – from RES in December 2021.
Franck Woitiez, chief executive officer 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.
“Just as important as our innovative financing practices are the relationships we’ve built with a strong network of UK project partners.
“We’re pleased to be working with Habitat Energy, Tesla and RES to deliver our Lakeside facility, as we relentlessly pursue our ambitions to achieve Net-Zero by connecting more people to more renewable power.”