SWITCH Power completes the financial close of $ 5.6 million of energy storage projects in Ontario
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CALGARY, Alberta, November 09, 2021 (GLOBE NEWSWIRE) – SWITCH Power Corporation (“SWITCH”) is pleased to announce the successful financial close of $ 5.6M for the purchase and construction of a portfolio of meters behind the battery energy storage systems (“BESS”) meter (“BTM”), as part of a second closing of the previously announced agreement with Peak Power Inc. (“Peak”).
- SWITCH closes the previously announced acquisition of PEAK’s development portfolio, following the acquisition of four operating assets in September 2021
- SWITCH obtains a $ 4.3 million equipment purchase loan (“EP loan”) for the supply of BESS from RE Royalties Ltd. (“RE Royalties”)
- SWTICH Investment Committee Approves $ 1.3M Equity Financing
- Portfolio of five projects, with a cumulative capacity of 3.5 MW to be commissioned in the third quarter of 2022
- SWITCH concludes a software service contract with PEAK for the operation and shipping of the BESS
SWITCH has finalized the acquisition of a BESS development portfolio with PEAK, as previously announced, following the successful acquisition of four operating BESSs. The portfolio represents 25 MW or 44 MWh, including 9 projects to be rolled out until 2022 and 2023. In addition to the closing of the acquisition, SWITCH has entered into an EP loan agreement with RE Royalties, a world leader in financing based on renewable energy royalties for $ 4.3 million. The EP loan will be provided in two drawdowns: $ 2.8 million at closing and the remaining $ 1.5 million in the first quarter of 2022, allowing SWITCH to acquire BESS for the first five projects of the development portfolio located in Ontario. This is SWITCH’s third transaction with RE Royalties, in the context of the previously announced acquisition by SWITCH of a portfolio of energy storage projects for the operation and development of PEAK.
The 2022 projects will have a total storage capacity of 3.5 MW and are expected to reach commercial operations in the summer of 2022. The 2022 projects are located next to existing buildings owned by large industrial and financial institutions and SWITCH will receive revenue from multiple sources, the majority from energy service agreements (“ESAs”) with building owners. As part of the SEA, SWITCH will receive a percentage of the cost savings generated by the BESS systems, mainly by reducing the costs associated with the overall adjustment, as part of the Industrial Conservation Initiative program of the Independent Electricity System Operator.
The BESS supports customers by integrating the environment into their balance sheet and reducing emissions, while reducing costs and generating new income through the optimization of electricity. It is estimated that the portfolio will offset nearly 1,170 tonnes of CO2 per year, which is equivalent to taking 250 gasoline cars off the road. This acquisition will give SWITCH an estimated 20% market share in a rapidly growing energy storage market in Ontario.
“We are very happy to develop our relationship with SWITCH Power with this third transaction. Trevor White and his team continue to make incredible progress in building their clean energy portfolio, and we look forward to seeing these projects reach commercial operations in the months to come, ”said Bernard Tan, CEO of RE Royalties .
Trevor White, President and CEO of SWITCH Power, said: “We are delighted to complete our previously announced transaction with PEAK, acquiring their portfolio of BESS development projects and strengthening our presence in an emerging storage market by Ontario. We look forward to a long partnership with PEAK through their innovative software services and management of these assets, as well as the collective efforts to develop this platform. The timing, flexibility and structure of RE Royalties’ financing instruments and this loan allow us to move forward with the purchase of critical storage systems to meet next year’s commissioning dates. and generate meaningful energy solutions for our customers.
About RE royalties
RE Royalties acquires royalties based on revenues from renewable energy production facilities by providing a non-dilutive financing solution to private and publicly traded companies producing and developing renewable energy. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently holds 84 royalties on solar, wind and hydroelectric projects in Canada, Europe and the United States. The Company’s business objectives are to provide shareholders with a strong and growing return, strong capital protection, a high rate of growth through reinvestment and a sustainable investment focus.
About SWITCH Power Corporation
SWITCH Power is a sustainable energy developer, asset manager and independent power producer based in Alberta. SWITCH targets underserved and niche markets to develop, finance, build, own and operate distributed power infrastructure, with a focus on customer driven projects with an inherent value proposition, through an electricity as a model. that service. Their diverse portfolio spans multiple technology, geographic and customer segments, each with scale and offering a diverse portfolio of sustainable production.
For more information:
Trevor White, President and CEO
c / o SWITCH Power Corp
Floor 19, 700 2nd Street SW,
Calgary, AB T2P 2W2, Canada