Macquarie Capital has closed the project financing for a
50MW lithium-ion battery system in California, the first
commercial project financing to close in the battery storage
sector. The deal is also the first large-scale commercial
transaction in this space, and could serve as a starting point
for further investment.
Lead arranger and lender
CIT Bank provided traditional non-recourse project financing
for the project, establishing a simple covenant package, with
straightforward debt-to-capital ratios. According to Timothy
Moran, partner and US chair of
DLA Piper’s renewable energy practice, who
acted for CIT Bank, it is the straightforward structure of the
deal that makes it a landmark.
"In terms of everything coming together for financeability,
it really represents the technology coming into the goldilocks
zone," he said.
The Tesla Powerpack battery system used in this deal
integrates 'batteries, power electronics, thermal management
and controls into a turnkey solution’. The company