Clean energy enterprise TagEnergy has reached financial close on its 49.9MW/99.8MWh Pitkevy facility in Fife, Scotland. Pitkevy is TagEnergy’s first split-contract project, with Tesla providing the Megapack 2 XL battery systems and RJ McLeod completing site works and battery container installation.
Financed by a non-recourse green loan package on a fully merchant basis, except for Capacity Market revenues, the package was originally secured to finance the construction and operation of TagEnergy’s Lakeside Battery Energy Storage System (BESS) project. This is the sixth UK battery storage facility in the company’s portfolio.
Backed by Santander UK, Rabobank, and Triple Point, the finance package includes an uncommitted accordion facility that allows TagEnergy to include the Pitkevy site in the funding structure.
Franck Woitiez, TagEnergy CEO, 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.”
The Pitkevy facility contributes to TagEnergy’s wider portfolio of nearly 12GW of solar, wind and battery storage projects across Europe and Australia and sees Flexitricity partner as route to market and battery optimiser.
“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,” said Andy Lowe, Flexitricity CEO. “And we’re confident that our advanced machine learning expertise and trading capabilities will deliver market-leading value.”
TagEnergy acquired its 100% stake in the Pitkevy battery storage facility from Intelligent Land Investments Group Plc in October 2022. Construction is now underway, and the energy park is scheduled to begin operation at the end of 2024.
The news follows TagEnergy’s earlier work in the UK storage sector, after signing a deal with Tesla, Habitat and RES for a 200MWh storage project in North Yorkshire last year.