Macquarie’s Green Investment Group announces debt financing of California battery storage project
New York, 26 Mar 2019
- Debt financing to fund additional 97 MWh, completion of innovative storage portfolio
- Lead lender CIT Group joined by Rabobank, Sumitomo Mitsui Banking Corporation, ING
- Project furthers GIG’s mission of building a greener global economy
Macquarie’s Green Investment Group (GIG), the specialist green energy project developer and investor, today announced the closing of debt financing on an innovative battery-based energy storage project in Southern California. It is the project’s third debt financing and will fund the completion of its construction.
The financing announced today funds construction of an additional 97 MWh portfolio and, once fully constructed, will complete a 63 MW / 340 MWh project for Southern California Edison (SCE) of behind-the-meter, battery storage systems located in grid-constrained pockets of the West Los Angeles Basin service territory. CIT Group, which led the initial financing through its Power and Energy Finance unit, was also the lead lender in the second financing in December and this financing, which was joined by Rabobank, Sumitomo Mitsui Banking Corporation and ING.
Macquarie acquired the original portfolio from AMS in August 2016 and together Macquarie and AMS have been jointly developing and constructing it. The project’s first debt financing in 2017 was a first-of-its kind non-recourse project financing of distributed battery-based energy storage systems.
“Lenders have recognized the unique nature of this innovative project, along with its commercial potential and we are pleased to secure this final round of financing,” said Chris Archer, Head of Green Energy Americas for Macquarie Capital. “CIT has been a great financial partner throughout, along with Rabobank and Sumitomo Mitsui Banking Corporation, which were part of the previous debt financing, and we are thrilled to add ING as a lender.”
The fleet of energy storage systems, which are located at various large-load commercial, industrial and government host sites in Los Angeles and Orange counties, will be used for utility grid services including flexible and reserve capacity, solar integration and voltage management in addition to retail energy services such as demand management, back up generation and enhanced power quality.
“One of the biggest challenges facing renewable power is the lack of capacity to store clean energy until it’s needed most,” said Mike Lorusso, managing director and group head of CIT’s Power and Energy unit. “We were pleased to serve as lead arranger on financing that significantly advances the grid-connected battery storage infrastructure in Southern California. CIT’s financing of this landmark project is another example of our ongoing commitment to supporting innovation and sustainable solutions in the energy sector.”
Last week, AMS announced that its virtual powerplant project in Southern California delivered over 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 of the nation’s largest energy storage system being used for on-site power – a 2.5 MW/15MWh installation 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 green infrastructure principal investment, project delivery and the management of portfolio assets, and related services. Its track record, expertise and capability make it a global leader in green investment, dedicated to supporting the growth of the global green economy.
The business was launched initially by the UK Government in 2012 as the first institution of its type in the world. The organization was acquired by Macquarie Group in 2017, creating one of Europe’s largest teams of dedicated green infrastructure investors, and now operates under the name Green Investment Group.
Macquarie Group Limited (Macquarie) is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs over 14,800 people and has assets under management of more than $397.2 billion (as of September 30, 2018).
For more information, visit www.greeninvestmentgroup.com and www.macquarie.com.
AMS is a SaaS company with an A.I. software platform that uses deep learning algorithms to enable optimized dispatch and trading of complex energy assets in energy markets. AMS's business is powered by its industry-leading transactive energy management platform, which AMS and its partners utilize to offer compelling and innovative energy management services to customers, utilities, and project developers. To learn more, please visit www.advmicrogrid.com and follow us on twitter: @advmicrogrid.