Construction commences on TagEnergy’s 6th UK battery project

Clean energy enterprise TagEnergy has reached financial close on the 49.9MW/99.8MWh Pitkevy facility in Fife, Scotland, its sixth battery energy storage system (BESS) project in the UK.

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.

The UK battery project also marks TagEnergy’s first split-contract project, with Tesla providing a Megapack 2XL 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.

Franck Woitiez, chief executive officer of TagEnergy said in a release: “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.”

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Andy Lowe, CEO at Flexitricity, added: “TagEnergy is driving change in the clean energy sector and we are delighted to now contract with them, having been working in partnership for a number of years.

“BESS projects like Pitkevy have a vital role to play in the UK energy transition and we’re confident that our advanced machine learning expertise and trading capabilities will deliver market-leading value.”

Construction has commenced and the energy park is scheduled to be operational at the end of 2024.

Financing breakdown

The project was financed under a non-recourse green loan package of up to £70 million ($88.2 million), provided by lenders Santander UK, Rabobank, and Triple Point on a fully merchant basis, except for Capacity Market revenues.

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.

Jan Libicek, investment director at Triple Point, said: “We are thrilled to strengthen our partnership with TagEnergy and contribute to the expansion of the BESS sector in the UK.

“Our commitment to funding new BESS developments stands at the forefront of our strategy to foster a decarbonised energy grid. This collaboration highlights our mutual dedication to advancing the UK’s journey towards a cleaner, sustainable, and more resilient energy future.”

TagEnergy acquired its 100% stake in the battery storage facility from Intelligent Land Investments Group Plc in October 2022.