Global clean energy enterprise TagEnergy has announced Habitat Energy, Tesla and RES as project partners on its next UK-based battery energy storage system (BESS), the 100MW/200MWh Lakeside facility in North Yorkshire, England.
Habitat Energy partners as route to market and battery optimiser, Engineering Procurement and Construction (EPC) contractor Tesla will provide a system of Tesla Megapack 2XL lithium-ion batteries while independent renewable energy company RES has been engaged as asset manager.
TagEnergy secured a landmark debt package to finance the project under an innovative financing model. The non-recourse debt package of up to £70m provided by lenders Santander, Rabobank, and Triple Point on a fully merchant basis (except for Capacity Market revenues) will finance the construction and operation of TagEnergy’s Lakeside project, and includes an uncommitted accordion facility with a view to incorporate further assets into the funding Structure.
Construction commenced on the Lakeside project in August 2023 with the energy park due to go live by mid 2024. TagEnergy acquired its 100 per cent stake in the battery storage facility – then its fifth investment in the UK – from RES in December 2021.
Franck Woitiez, Chief Executive Officer, TagEnergy said: “Securing a single non-recourse debt package without a revenue floor is testament to the value our innovative approach to financing offers the market. We’re excited to now move to the next stage of the project to accelerate the energy transition.”
“Just as important as our innovative financing practices are the relationships we’ve built with a strong network of UK project partners. We’re pleased to be working with Habitat Energy, Tesla and RES to deliver our Lakeside facility, as we relentlessly pursue our ambitions to achieve Net-Zero by connecting more people to more renewable power.”
Habitat Energy UK Managing Director, Jon Doughty, welcomed the opportunity to partner with TagEnergy.
“TagEnergy shares our belief that the full value of battery storage lies in a merchant-first approach. We look forward to applying our award-winning technology and trading capabilities to maximise the performance of their innovative Lakeside project.”
Habitat Energy were supported by Gowling WLG acting as legal advisor on the Optimisation Agreement and Direct Agreement.
