TagEnergy Reaches Financial Close for 49.9 MW Energy Storage Project

TagEnergy, a clean energy company investing in competitive generation and storage assets, secured financial closure on the 49.9 MW/ 99.8 MWh Pitkevy facility in Fife, Scotland. The energy storage project was financed under a non-recourse green loan package of up to £70 million (~$88.35 million), provided by lenders Santander UK, Rabobank, and Triple Point on a fully merchant basis (except for Capacity Market revenues).

The package was initially secured to finance the construction and operation of TagEnergy’s Lakeside energy storage project in October 2023, which also included an uncommitted accordion facility, enabling TagEnergy to incorporate Pitkevy into the funding structure.

The construction has already begun, and the project is scheduled to be operational by the end of 2024. TagEnergy acquired its 100% stake in the battery storage facility from Intelligent Land Investments Group Plc in October 2022.

As for the Lakeside facility, the debt was arranged by IDCM as a financial advisor, with TLT serving as the borrower’s legal advisor. Burges Salmon as the lender legal advisor, 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.

Franck Woitiez, Chief Executive Officer, 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.”

According to Mercom’s Annual and Q4 2023 Funding and M&A Report for Storage & Smart Grid, energy storage announced project funding saw the highest amount of funding raised to date in 2023, increasing 62% YoY for a total of $9.9 billion in 38 Energy Storage project funding deals compared to $6.1 billion raised in 41 deals in 2022.

Spearmint Energy, an energy storage project developer, announced the addition of Nuveen to its $200 million enhanced credit facility with Aiga Capital Partners. The term loan will support the development and construction of a 2.8 GW portfolio of battery energy storage system assets.