Macquarie’s Green Investment Group Announces Debt Financing for California Battery Storage Project
NEW YORK–(COMMERCIAL THREAD) – Macquarie’s Green Investment Group (GIG), a developer and investor specializing in green energy projects, today announced the completion of debt financing for an innovative battery-based energy storage project in Southern California. This is the third debt financing of the project and will finance the completion of its construction.
The financing announced today funds the construction of an additional 97 MWh portfolio and, when fully constructed, will complete a 63 MW / 340 MWh project for Southern California Edison (SCE) behind the meter battery storage systems located in pockets limited to the network. of the West Los Angeles Basin service area. CIT Group, which led the initial financing through its Power and Energy Finance unit, was also the main lender of the second financing in December and of that financing, which was joined by Rabobank, Sumitomo Mitsui Banking Corporation and ING.
Macquarie acquired the original portfolio of SMA
in August 2016 and together Macquarie and AMS jointly developed and built it. The project’s first debt financing in 2017 was a one-of-a-kind non-recourse project financing of distributed battery-based energy storage systems.
“Lenders have recognized the unique nature of this innovative project, as well as its commercial potential, and we are delighted to secure this latest round of funding,” said Chris Archer, Green Energy Manager for the Americas at Macquarie Capital. . “CIT has always been a great financial partner, alongside Rabobank and Sumitomo Mitsui Banking Corporation, which were part of the previous debt financing, and we are delighted to add ING as a lender.
The energy storage systems fleet, which is located at various heavy-load commercial, industrial and government sites in Los Angeles and Orange counties, will be used for power grid services, including flexible capacity and standby, solar integration and voltage management in addition to retail energy services such as demand management, back-up generation and energy quality improvement.
“One of the biggest challenges facing renewables is the lack of capacity to store clean energy until it’s needed most,” said Mike Lorusso, CEO and Group Leader of CIT’s Power and Energy unit. “We were delighted to play the role of lead arranger on the funding that dramatically advances grid-connected battery storage infrastructure in Southern California. CIT’s funding of this historic project is another example of our continued commitment to supporting innovation and sustainable solutions in the energy sector.
Last week, AMS announced that its virtual power plant project in Southern California provided more than 2 GWh of grid services to the California Independent System Operator in its first year of operation. In June, Irvine Ranch Water District and Macquarie announced completion the country’s largest energy storage system used for on-site electricity – a 2.5 MW / 15 MWh facility now powering the district’s largest water recycling plant.
About Green Investment Group and Macquarie Group
Green Investment Group Limited (GIG) is a specialist in senior green infrastructure investment, project delivery and portfolio asset management, and related services. Its track record, expertise and capabilities make it a global leader in green investment, dedicated to supporting the growth of the global green economy.
The company was initially launched by the UK government in 2012 as the world’s first such institution. The organization was acquired by Macquarie Group in 2017, creating one of the largest European teams of investors dedicated to green infrastructure, and now operates under the name of Green Investment Group.
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset and finance management, banking, advisory and risk and capital solutions in the areas of debt, equities and materials. raw. Founded in 1969, Macquarie employs 14,469 people in more than 25 countries. As of March 31, 2018, Macquarie had assets under management of £ 309.9 billion.
AMS is a SaaS company with an AI software platform that uses deep learning algorithms to enable optimized shipping and trading of complex energy assets in energy markets. AMS ‘business is built on its industry-leading transactive energy management platform, which AMS and its partners use to deliver compelling and innovative energy management services to customers, utilities and to project developers. For more information, please visit www.advmicrogrid.com
and follow us on twitter: @advmicrogrid.