SWITCH Power achieves financial close on $5.6M of energy storage projects in Ontario
CALGARY, Alberta, Nov. 09, 2021 (GLOBE NEWSWIRE) — SWITCH Power Corporation (“SWITCH”) is excited to announce the successful financial close of $5.6M for the procurement and construction of a portfolio of behind the meter (“BTM”) battery energy storage systems (“BESS”), as part of a second close in the previously announced deal with Peak Power Inc (“Peak”).
- SWITCH closes on previously announced acquisition of development portfolio from PEAK, following their acquisition of four operating assets in September of 2021
- SWITCH secures $4.3M Equipment Procurement Loan (“EP Loan”) for BESS supply from RE Royalties Ltd. (“RE Royalties”)
- SWTICH’s investment committee approves $1.3M of equity financing
- Portfolio of five projects, with aggregate capacity of 3.5MW to be in service for Q3 2022
- SWITCH enters into Software Services Agreement with PEAK for the operation and dispatch of the BESS
SWITCH has closed the acquisition of a portfolio of development BESS with PEAK, as previously announced, following the successful acquisition of four operating BESS. The portfolio represents 25MWs or 44MWhs, including 9 projects to be deployed through 2022 and 2023. In addition to the closing of the acquisition, SWITCH has entered into an EP Loand agreement with RE Royalties, a global leader in renewable energy royalty-based financing, for $4.3M. The EP loan will be provided in two draws: $2.8 million at closing and the remaining $1.5 million in Q1 of 2022, allowing SWITCH to procure BESS for the first five projects of the development portfolio located in Ontario. This is SWITCH’s third transaction with RE Royalties, as part of SWITCH’s previously announced acquisition of a portfolio of operating and development energy storage projects from PEAK.
The 2022 Projects will have a total storage capacity of 3.5MW and are expected to reach commercial operations in the summer of 2022. The 2022 projects are located adjacent to existing buildings owned by large industrial and financial institutions and SWITCH will receive revenue from several sources, with the majority coming from Energy Services Agreements (“ESAs”) with the building owners. Under the ESAs, SWITCH will receive a percentage of the cost savings generated by the BESS systems, primarily through reducing the charges related to Global Adjustment, under the Independent Electricity System Operator’s Industrial Conservation Initiative Program.
The BESS support the customers by putting the environment on their balance sheet and reducing emissions, while lowering costs, and unlocking new revenues through electricity optimization. It is estimated the portfolio will offset nearly 1,170 tonnes of CO2 per year, equivalent to taking 250 gas-powered cars off the road. This acquisition will secure SWITCH an estimated 20% market share in a high-growth energy storage market in Ontario.
“We are very pleased to grow our relationship with SWITCH Power with this third transaction. Trevor White and his team continue to make incredible progress in building out their clean energy portfolio, and we look forward to seeing these projects reach commercial operations in the coming months,” said Bernard Tan, CEO of RE Royalties.
Trevor White, President and CEO of SWITCH Power, stated, “We’re excited to close our previously announced transaction with PEAK, in acquiring their portfolio of BESS development projects, and scaling our presence in an emerging Ontario storage market. We look forward to a long partnership with PEAK through their innovative software services and management of these assets, and collective efforts on growing this platform. The timing, flexibility, and structure of RE Royalties’ financing instruments and this loan allow for us to move forward with the procurement of critical storage systems to meet next year’s in service dates and generate meaningful energy solutions for our customers.”
About RE Royalties
RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately held and publicly traded renewable energy generation and development companies. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns 84 royalties on solar, wind and hydro projects in Canada, Europe, and the United States. The Company’s business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
About SWITCH Power Corporation
SWITCH Power is an Alberta-based sustainable power developer, asset manager and independent power producer. SWITCH targets underserved and niche markets to develop, finance, build, own and operate distributed power infrastructure, with a focus on customer facing projects with an inherent value proposition, through an electricity as a service model. Their diverse portfolio spans across multiple technology, geographical, and customer segments, each presenting scale and providing a diverse portfolio of sustainable generation.
For further information:
Trevor White, President & CEO
c/o SWITCH Power Corp
Floor 19, 700 2nd Street SW,
Calgary, AB T2P 2W2, Canada