Macquarie’s Green Investment Group to acquire a stake in large-scale energy storage developer esVolta

Some of the highlights selected by Green Investment Group for 2020. Image: GIG via Twitter.

The Green Investment Group (GIG), a company owned by the Macquarie Financial Services Group, is investing an unspecified amount in esVolta, a US-based developer and owner of energy storage projects.

esVolta has over 600 MWh of energy storage projects under contract in California, including the 75 MW / 300 MWh Hummingbird Energy Storage Project, which is one of many new facilities enabling Pacific Gas & Electric (PG&E) to decommission a 605 MW natural gas plant in Coyote Valley, California. Elsewhere in the state – which has aggressive policy goals to achieve 100% clean energy by 2045 – the developer was chosen by Community Choice Aggregator (CCA) groups to help support their supply of electricity to individual customers with a 15 MW / 60 MWh autonomous battery storage project. In February 2020, esVolta entered into a senior secured credit facility worth approximately US $ 140 million for the financing of its projects.

GIG announced yesterday that it will make an investment in esVolta which will start as a bridge loan to the developer but convert to equity, once the required regulatory approvals have been obtained from parties, including the Federal Energy Regulatory Commission (FERC ) the United States.

GIG was originally started as a public company called Green Investment Bank by the UK Government in 2012, but was acquired by the Macquarie Group in 2017. It is now active in over 25 markets and employs or works with more than 450 experts, including specialized “green” investors and promoters.

His existing interests in the energy storage market include launching a joint venture (JV) with a renewable energy developer Enso Energy to develop a 1 GW pipeline of additional solar storage and battery facilities in mid-2020 without subsidy in the UK. GIG has also created a JV last year with German engineering company Siemens called Calibrant Energy, to develop distributed energy resources (DER) including solar and wind power in the United States.

Other Macquarie Group companies such as Macquarie Capital have also been involved in the energy storage business – perhaps more specifically Macquarie Capital’s US $ 200 Million Project Funding Agreement with Advanced Microgrid Solutions (AMS) for projects at commercial and industrial (C&I) and government sites in 2016. Although the agreement remains one of the largest of its kind in the industry to date, AMS has since been acquired by the storage technology provider Energy Energy Fluence, itself a joint venture between AES Corporation and Siemens.

GIG’s global head of energy technology, Greg Callman, said esVolta – which claims to have an additional 2 GWh of large-scale energy storage projects under development in North America – has “significant growth potential on new markets “. A team of group specialists who identify emerging technologies, companies and the opportunities of the energy transition worked on the investment in the company.

“GIG is uniquely positioned to accelerate this growth and help deliver esVolta’s substantial development pipeline,” said Callman.

“Energy storage is essential to enable increased deployment of renewable energy, and we look forward to leveraging our capabilities with esVolta to accelerate the energy transition in California and beyond.

Meanwhile, esVolta Founder and CEO Randolph Mann said that in addition to the demand for energy storage in his company’s home state, California, remaining strong, esVolta is seeing ” vast opportunities for geographic expansion as well as additional product and service offerings “.

“Our relationship with GIG will further broaden our expertise and open up additional growth opportunities,” said Mann.

In August of last year, esVolta signed an agreement with analytics and software company ION Energy to help manage battery assets in its California portfolio. ION Energy’s platform, Edison Analytics, monitors battery health, allowing the developer to take action as issues arise with battery cell degradation, as well as determine the “Available useful capacity of batteries during operation”, according to ION Energy. responsible for the analysis Indresh Kumar.

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