Energy
| Sector | Energy |
| Sub-sector | Infrastructure |
| Location | The Netherlands |
Battery energy storage systems (BESS) have emerged as a key reliable source of power to support the energy transition, capable of capturing and storing renewable energy at times of surplus and controlling when it is released. This capability enables grids to match the demand from energy consumers, providing a flexible and secure solution to the intermittent availability of some renewable sources of energy, such as solar and wind.3
Dutch battery developer Lion Storage develops and builds large-scale battery energy storage systems, supporting grid stability whilst aiming to increase sustainable energy use throughout the Netherlands.4 Increased use of BESS is integral to the country achieving its sustainability goals; in particular, meeting its 2030 renewable energy share (RES) target of 39 per cent under the EU Renewable Energy Directive.5
With a power capacity of 350 MW and energy capacity of 1,400 MWh, this system has sufficient capacity to power over 200,000 households;1 a significant enhancement to the country’s existing installed BESS capacity, which stood at 621 MWh in 2023.6
Macquarie Capital’s extensive network in energy transition capital markets was leveraged to facilitate the best possible outcomes for all stakeholders, including raising additional equity capital alongside Macquarie’s initial investment, raising the project finance debt from a group of European lenders.
With its experience in the renewable energy sector, Macquarie worked closely with the developer to structure a unique investment approach tailored to their needs. In addition, the Macquarie team supported Lion Storage in commercial negotiations with key contractors. These included Tesla, which acted as the engineering, procurement and construction partner, and the operator Eneco. A Market Model Revenue Index (MMRI) offtake was developed to enable the project to benefit from Dutch energy markets without the exposure to trading risks.
Furthermore, Macquarie Capital worked across the Macquarie Group, including leveraging the expertise of the Commodities and Global Markets business to benchmark the transaction’s innovative lithium hedge and mitigate associated pricing risks.
Outcome
This €350 million project will play a crucial role in alleviating grid congestion in the North Sea Port area by substantially enhancing grid capacity once operational,7 and is the first of its kind in the Netherlands to be fully funded through 100 per cent non-recourse financing.
Set to become operational in the first half of 2027, Project Mufasa builds on Macquarie Capital’s success of its initial BESS project in the Netherlands – a 45 MW/90 MWh project being developed in the municipality of Dordrecht.8 The team leveraged its network of expertise and understanding of Dutch power markets to support a streamlined process to financial close – the first planned TenneT (high voltage transmission) BESS project of its kind to do so.9
Battery storage is critical to maximising the role of renewables in the energy transition by enabling the delivery of dispatchable clean energy. Using Macquarie Capital’s flexible balance sheet, we’re proud to be supporting an independent developer in successfully delivering a project of this scale and significance for the Netherlands under an innovative market index revenue model – bringing our deep expertise of investing in and developing BESS projects globally to the Dutch market.”
Jeroen Zanders
Managing Director for Macquarie Capital in the Benelux region
invested of 100 per cent non-recourse financing
of predicted power capacity
of expected energy capacity
households anticipated to be powered with renewable energy
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