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- Triple Point Energy Efficiency Infrastructure invests in BESS assets
Triple Point Energy Efficiency Infrastructure (TEEC) has announced that it has signed contracts to provide a debt facility to a subsidiary of Virmati Energy Ltd (trading as “Field”), for the purposes of building a portfolio of four geographically diverse Battery Energy Storage System (BESS) assets in the UK. The total facility amounts to £45.6m and carries a fixed interest rate, which TEEC says will be supportive to TEEC in meeting its dividend target.
The portfolio for which the debt facility is being provided has a total capacity of 110MW. The first BESS asset, which is a one hour duration battery, is expected to become operational in June 2022. It is located in the North of England and has a total capacity of 20MW. The other three BESS assets are located in Scotland (two hour duration battery; total capacity 50MW), Wales (two hour duration battery; total capacity 20MW), and the South East of England (one hour duration battery; total capacity 20MW). These are expected to become operational in 2023.
TEEC has noted the following key terms of the debt facility:
The Portfolio forms part of the pipeline of BESS asset investment opportunities identified by the Company in its announcement of 1 February 2022, including over 500MW of further assets to be commissioned by Field. TEEC says that, “with the continued roll-out of intermittent renewable energy facilities across the UK’s grid, demand for grid balancing and storage services in the UK is likely to stay high for a significant period of time. Grid-scale battery systems provide one of the most effective and proven solutions to this requirement, storing power when it is produced in excess and then making it available when demand is higher. As with other infrastructure asset classes, long-term debt capital has an important role to play in the scale up of BESS in the UK.”
Field was established in 2020 with a vision to finance, build, operate and monetise the renewable infrastructure needed to reach net zero, starting with battery storage. According to TEEC, Field has aspirations to be a market leader in sustainable practices in energy storage.
TEEC says that, alongside Field, the Group has negotiated robust provisions around responsible sourcing, as well as a strategy for tracking emissions associated with the projects, including scope 3. The Group also has consent rights over recycling strategy at end of cell life to ensure it meets its environmental standards.
“Now more than ever, we are seeing the increasingly urgent need for energy efficiency solutions. As the world moves towards greater use of renewable sources of energy, battery storage is essential to improve front of meter energy efficiency, maximising and making use of the intermittent power generated from such renewable sources. Efficient use of such power reduces the reliance on traditional fossil fuel generation, thus reducing energy costs and carbon emissions.”
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