April 4, 2019: Project developer Macquarie’s Green Investment Group, the business formed when Green Investment Group was bought by Macquarie Group in 2017, announced on March 26 it is to build 97MWh of storage in Southern California, US, after closing its final debt-financing round.
The third funding will allow the group to complete construction of a 63MW/340MWh project for power utility Southern California Edison.
The project includes behind-the-meter systems for large-load commercial, industrial and government host sites in the Los Angeles and Orange counties.
Once completed, the system will deliver grid services including flexible and reserve capacity, solar integration and voltage management. It will also deliver services such as demand management, back up generation and security of supply
The US CIT Group led the initial financing round in 2017 through its Power and Energy Finance unit, was the lead lender in the second round last December and was joined in the final round by Rabobank, Sumitomo Mitsui Banking Corporation and ING Group.
Macquarie acquired the original project portfolio from virtual power plant firm AMS in August 2016.
Last month, AMS announced its VPP project in Southern California had delivered more than 2GWh of grid services to the California Independent System Operator in its first year of operation.
Last June, Irvine Ranch Water District and Macquarie completed a 2.5MW/15MWh installation in Orange County that is powering the district’s largest water recycling plant.
SUSI’s first foray into US is to buy stake in BtM storage projects
Meanwhile, Swiss fund manager SUSI Partners announced on April 1 it had acquired a 50% stake of a portfolio of 90 behind-the-meter lithium ion battery storage projects from Macquarie’s Green Investment Group through its dedicated Energy Storage Fund.
The projects are located in the Western LA basin in California and have a total capacity of 63MW/340MWh.
The portfolio was originally developed by AI software as a service company AMS, which will continue to manage and dispatch the assets.
The transaction, funded by the SUSI Energy Storage Fund, marks the company’s first investment in the US.