Ameresco has just pulled off a financial coup that could reshape the energy storage sector. The company, known for its comprehensive energy solutions, has finalised a robust financial package designed to supercharge its battery storage asset and future energy infrastructure projects. This move isn’t just about securing funds; it’s a strategic play that could accelerate the deployment of resilient energy infrastructure.
At the heart of this financial manoeuvre is a note purchase agreement and private shelf agreement executed by Ameresco’s subsidiary. The initial note purchase agreement allows for the issuance of Series A notes worth $78 million, specifically earmarked for financing a battery energy storage asset currently under construction. This isn’t just about building a battery; it’s about enhancing energy resilience and advancing sustainable energy solutions.
The financial arrangement with CounterpointeSRE and Barings doesn’t stop at Series A. It includes an expected issuance of a second series of notes, Series B, subject to lender approval. These notes are intended to fund an additional solar plus battery energy storage project, extending over a 20-year term. This is where things get interesting. The Series A notes, maturing in 2045, feature a fixed interest rate, providing a stable financial backbone for the project. But the potential issuance of Series B notes adds a layer of flexibility, allowing Ameresco to pivot and adapt to future energy needs.
Ameresco president and CEO George Sakellaris didn’t mince words when he described this financial arrangement as a significant milestone. “This financial arrangement marks a significant milestone for Ameresco as we continue to lead the way in providing innovative energy solutions,” he stated. He went on to highlight the $300 million private shelf facility, which he expects will allow Ameresco to execute multiple transactions, enhancing their ability to deliver energy projects that drive cost savings, resilience, and decarbonisation. This isn’t just about one project; it’s about a pipeline of projects that could reshape the energy landscape.
But Ameresco isn’t stopping at battery storage. The company has also arranged for the transfer of investment tax credits linked to the battery asset, which will be realised once the asset commences commercial operations. This move could set a precedent for future projects, making energy storage more financially viable.
CounterpointeSRE CEO Eric Alini echoed Sakellaris’ sentiments, stating that the shelf agreement aligns perfectly with CounterpointeSRE’s commitment to support resilient, sustainable infrastructure. This isn’t just about making money; it’s about driving both environmental and economic benefits.
Meanwhile, Ameresco’s Irish subsidiary, Cork Sustainable Energy, has secured approval for a significant upgrade to the Kilvinane Wind Farm in Ireland. This move underscores Ameresco’s global reach and its commitment to renewable energy.
So, what does this all mean for the energy sector? It’s a clear signal that battery storage is no longer a niche market. It’s a critical component of the energy mix, and companies like Ameresco are leading the charge. This financial package could accelerate the deployment of energy storage projects, making renewable energy more reliable and resilient. It’s a game-changer, and we’re watching this space closely.