New Battery Storage Project gains Macquarie Capital's Attention
Martech Outlook | Tuesday, February 05, 2019
The storage of batteries is a key focus of a new clean energy business unit, as investors and project developers see an increase in revenue, with a greater focus on the deployment of distributed batteries. Battery storage project financing has also seen strong growth in recent years.
Macquarie is a universal provider of banking, financial, consulting, investment, and fund management services based in Sydney with offices in 27 countries. It promotes innovation, balanced with robust risk management, to provide customers, communities, and shareholders with opportunities. The diversified financial group of Macquarie provides customers with debt, banking, and more capital solutions.
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Macquarie Capital recently announced debt finance for innovative battery storage products in California. The final debt finance amounted to $100 million. This debt financing was done to refinance existing systems and expand the portfolio with additional new project construction of the 177 MWh behind-the-meter battery storage system portfolio. It is located in certain grid-constrained pockets of the West Los Angeles service area.
CIT is now the leading investor in the refinancing of existing systems in partnership with Rabobank and Sumitomo Mitsui Banking. CIT is a national bank aimed at empowering companies with more than a hundred years of experience.
Chris Archer, Head of Green Energy Americas for Macquarie Capital, said, “CIT has been an outstanding financing partner and believer in our track record of financing and developing distributed power assets, and we are delighted to welcome new lenders to this growing asset class.”
As the first non-recourse project to finance battery-based energy storage systems, Macquarie Capital has acquired the AMS portfolio in August 2016, and both developed and built it jointly. AMS is an A.I. software platform where its industry-leading Transactive Energy Management Platform powers its business.
Battery storage solutions connected to the grid, speed up the adoption of clean energy resources with improved grid operating capabilities. This reduces costs and ensures the battery systems are reliable. The Los Angeles energy storage systems are used for solar integration and voltage management. In addition, it is used in retail energy services for demand management, backup, and improved power quality.
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