Global clean energy firm TagEnergy has secured a non-recourse debt package of up to £70 million for its upcoming battery energy storage system (BESS) project in North Yorkshire, England.
The funding, provided by Santander, Rabobank, and Triple Point, will be used for the construction and operation of the Lakeside project. The debt package also includes an uncommitted accordion facility for incorporating additional assets.
Coinciding with the financial close, TagEnergy announced its project partners, including Tesla, Habitat Energy, and RES.
Tesla will serve as the Engineering Procurement and Construction (EPC) contractor, providing Tesla Megapack 2XL lithium-ion batteries for the 100MW/200MWh facility. Habitat Energy will act as the route to market and battery optimizer, while RES will manage the asset.
Franck Woitiez, CEO of TagEnergy, stated, “Securing a single non-recourse debt package without a revenue floor is testament to the value our innovative approach to financing offers the market.” He added that the company is excited to work with Habitat Energy, Tesla, and RES in achieving its Net-Zero goals by connecting more people to renewable power.
The Lakeside project began construction in August 2023 and is expected to go live by mid-2024. TagEnergy acquired a 100% stake in the facility from RES in December 2021, marking its fifth investment in the UK.
The debt arrangement involved multiple advisors, including IDCM as the financial advisor and TLT and Burges Salmon as legal advisors. Other advisors included Aurora Energy Research, Everoze, WTW, Ester, and RSM in various capacities ranging from energy analytics to insurance and hedge advising.
The Lakeside BESS project is seen as a key enabler in the UK’s transition to Net Zero, facilitating the increased penetration of renewable generation assets.