TagEnergy, a global leader in clean energy solutions, has achieved financial closure on its latest project, the Pitkevy facility in Fife, Scotland. This marks TagEnergy’s sixth battery energy storage system (BESS) project in the UK, underlining its commitment to advancing sustainable energy infrastructure.
The project received funding through a non-recourse green loan package of up to £70 million, provided by esteemed lenders Santander UK, Rabobank, and Triple Point. This financing arrangement, initially secured for TagEnergy’s Lakeside BESS project in October 2023, included an uncommitted accordion facility, allowing for seamless incorporation of Pitkevy into the funding structure.
Notably, the Pitkevy project represents TagEnergy’s first split-contract endeavor, with Tesla supplying the Megapack 2 XL battery system, while RJ McLeod oversees site works and container installation. Additionally, Flexitricity serves as the route to market and battery optimizer, while RES, an independent renewable energy company, has been appointed as the asset manager.
The Lakeside facility’s debt arrangement involved a consortium of partners, including IDCM as financial advisor, TLT as borrower legal advisor, and Burges Salmon as lender legal advisor. Aurora Energy Research provided energy analytics, Everoze served as technical advisor, WTW as insurance advisor, Ester as hedge advisor, and RSM as the model auditor.
Franck Woitiez, CEO of TagEnergy, expressed pride in leveraging this significant debt package to propel the Pitkevy facility forward, contributing to grid stability and the acceleration of the energy transition towards net zero. He emphasized the collaboration with trusted partners throughout the project lifecycle, underscoring TagEnergy’s commitment to expanding its UK portfolio to benefit both people and the planet.
Jamie Corser, Business Development Manager at RJ McLeod, expressed enthusiasm for being awarded the Pitkevy project and looks forward to collaborating with TagEnergy and Tesla once again.
Carol Kort, Executive Director of Project Finance at Rabobank, highlighted their support for TagEnergy’s growth and emphasized the importance of financing BESS assets like Lakeside and Pitkevy to stabilize the UK grid and further enable renewable energy deployment.
Mark Cumbo, Director of Specialised and Project Finance at Santander UK, echoed similar sentiments, emphasizing the critical role of investments in assets like Pitkevy for the UK’s transition to net zero.
Jan Libicek, Investment Director at Triple Point, emphasized their commitment to advancing the UK’s BESS sector and fostering a decarbonized energy grid through partnerships with innovative companies like TagEnergy.
Andy Lowe, CEO of Flexitricity, expressed confidence in TagEnergy’s role in driving change in the clean energy sector and the value that BESS projects like Pitkevy bring to the UK’s energy transition.
Construction of the Pitkevy facility has commenced, with operations slated to begin by the end of 2024.
TagEnergy acquired full ownership of the battery storage facility from Intelligent Land Investments Group Plc in October 2022, further solidifying its position as a key player in the clean energy industry.
