Project Finance Brief TagEnergy Acquires a 99.9 MW Battery Project for $85.8 Million

TagEnergy, a clean energy company investing in competitive generation and storage assets, has acquired a 100% stake in the 99.9 MW Lakeside battery energy storage system (BESS) from RES for close to £65 million (~$85.8 million). The project is in Drax, North Yorkshire, and will start construction in Q4 2022, with energization scheduled for October 2023.

National Grid Renewables announced the closing of $98 million in tax equity financing from Bank of America to support its 200 MW Prairie Wolf Solar Project. The project, located in the Midcontinent Independent System Operator (MISO) market, began construction earlier this year in Coles County, Illinois. Bank of America is the sole tax equity investor for the project.

Ellomay Capital, a developer of renewable energy projects in Europe and Israel, announced that Talasol Solar, which owns a solar project with an installed capacity of 300 MW in the municipality of Talavan, Caceres, Spain and is 51% owned by the company, entered into a Facilities Agreement with European institutional lenders. The agreement provides for the provision of a term loan facility in two tranches: (i) a term loan for €155 million (~$175.3 million) for 22.5 years, and (ii) a term loan for €20 million (~$22.6 million) for 21 years. The aggregate new financing amount (€175 million (~$197.9 million)) will be used by Talasol to repay the current outstanding project finance debt of Talasol for €121 million (~$136.8 million).

Virescent Renewable Energy Trust, a platform created by global investment company KKR to acquire renewable energy assets in India, has acquired a 49 MW solar portfolio from five special purpose vehicles of Focal Energy for ₹3.54 billion (~$46.73 million). The acquisition is in line with Virescent’s investment strategy provided in the trust deed, focusing on ensuring stable distribution to unitholders by owning assets with long-term contracts. The solar assets are located in Madhya Pradesh, Punjab, and Rajasthan. The portfolio has a mix of central and state government off-takers.

U.K. investment company, VH Global Sustainable Energy Opportunities, has finalized the acquisition of a 10.9 MW solar project in Queensland, Australia, investing £5.9 million (~$ 7.8 million). The acquisition company completes the first tranche of its plan to acquire two solar PV sites totaling 17 MW in Australia.

algoWatt, a company part of Italeaf Group, which provides energy and natural resources management solutions, closed the sale of three photovoltaic greenhouses totaling 4.6 MW for €3.3 million (~$3.7 million) to an international investor, in partnership with the sponsor LCF Alliance.  

Generation Bridge, a wholly-owned subsidiary of ArcLight Energy Partners Fund VII, closed the acquisition of a 4.9 GW power generating portfolio from NRG Energy. Generation Bridge consists of eight power generation facilities that provide critical capacity, energy, and ancillary services resources to California, New England, and New York markets. The services provided by the portfolio will allow for the integration of intermittent renewable resources in its respective markets over the coming decades. Generation Bridge’s acquisition was financed with $540 million of senior secured credit facilities in the institutional term loan market. Milbank served as primary legal counsel to ArcLight. Credit Suisse served as an exclusive financial advisor.

Neoen, a renewable energy independent power producer, has entered into an agreement to sell its entire interest in the Lugos and Miremont operating solar projects in France, totaling 21.7 MW. Both the projects will be sold for an enterprise value of close to €29 million (~$32.7 million) or €1.3 million (~$1.46 million) per MW. The transaction is expected to close by the end of 2021.

Ncondezi Energy announced that Ncondezi Green Power Holding (NGP), the company’s wholly-owned renewable energy subsidiary, has entered into a sale and purchase agreement with Green Energy and sold Mozambique Green Power (MGP), the group company which owns the group’s maiden commercial and industrial 400 kW solar and 912 kWh battery storage project in Mozambique. Under the sale and purchase agreement, MGP was sold to Green Energy for $1.3 million in cash.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

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