Aerial of Orange County, Southern California
Aerial of Orange County, Southern California

Energy

Building tomorrow’s energy grid with AMS, CIT and Tesla

Landmark financing of a utility-scale, behind-the-meter battery portfolio that will help alleviate grid congestion and lower customer electricity bills across the West Los Angeles Basin.

Sector Energy
Sub-sector Renewables
Location United Sates

Opportunity

A partnership to build tomorrow’s energy grid.

The rapid growth and integration of renewable energy resources coupled with the retirement of aging baseload generators has created significant stress on portions of California’s grid, especially in Southern California Edison’s (SCE) service territory in Los Angeles and Orange Counties.

Advanced Microgrid Solutions (AMS) set out to address this by developing an aggregated fleet of battery-based energy storage systems co-located at SCE’s large-load commercial and industrial customers.

Recognizing this growing need for grid support, Macquarie Capital (Macquarie) acquired a 50MW in-development portfolio of distributed battery storage systems from AMS in 2016. The portfolio gives Macquarie the opportunity to deploy capital and leverage its development expertise and renewable energy franchise in the US energy storage sector. The Portfolio includes 100 sites in the West Los Angeles Basin, across various commercial and industrial customers in the SCE service territory. Macquarie’s infrastructure specialists and AMS jointly developed the portfolio and facilitated $200 million of project capital required to design and build the fleet of cutting-edge battery storage systems primarily utilizing Tesla’s Powerpack solution.

Grid-connected battery storage solutions are increasingly recognized as a way to accelerate America's adoption of clean energy resources, as well as improve the operating capabilities of the grid, while lowering costs and ensuring reliability1.


An array of Tesla Powerpacks at 20 Pacifica, home to our first 6-hour battery installation


Approach

Comprehensive support from start to finish.

Following the acquisition of the portfolio, Macquarie’s team of experts structured, arranged and established a bankable contractual framework to execute one of the largest project financing deals in the emerging behind-the-meter energy storage sector, an industry first for this type of asset in the US.

The Portfolio will provide a range of grid services including flexible reserve capacity, solar integration and voltage management, as well as retail energy services to its host customers including demand charge management, back up generation and enhanced power quality.

"Together we are delivering best-in-class storage solutions to build tomorrow's energy grid."

Kelly Warner, President of AMS

Outcome

Macquarie was able to secure this unique opportunity based on our sector and in-house development capabilities, and comprehensive platform offering.

Our deep expertise in infrastructure enabled us to structure a traditional project finance solution for the portfolio. As demand for energy storage continues to grow, this transaction should serve as a model for future financings in this exciting asset class.

50MW/300MWh

fleet of behind-the-meter battery storage

$US200 million

of project capital to roll-out the portfolio

Industry first project financing

in the emerging behind-the-meter energy storage sector

1. Daniel Cusick, E&E News, Battery Storage Poised to Expand Rapidly, January 1, 2017 and The U.S. Department of Energy, Grid Energy Storage, December 2013

Look Beyond Convention.

See how we look beyond to create new possibilities and deliver real business impact to our clients across the Americas.

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