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Macquarie Capital, the corporate advisory, capital markets and
principal investing arm of Macquarie Group (“Macquarie”) (ASX: MQG;
ADR: MQBKY), today announced the closing of the first non-recourse
project financing of battery-based energy storage systems with CIT
Bank.
The financing, led by CIT, backs a 50MW fleet of
behind-the-meter, battery storage systems located in certain
grid-constrained pockets of the West Los Angeles Basin service
territory of Southern California Edison (“SCE”) that Macquarie
Capital acquired from Advanced Microgrid Solutions (“AMS”) in
August 2016. Since the acquisition, Macquarie and AMS have been
jointly developing and constructing the portfolio, which is
expected to come online in phases over the next 12-24 months.
”Macquarie Capital is proud to have closed this
first-of-its-kind financing for these critical battery storage
infrastructure assets in Southern California,” said Michael
Silverton, Head of Macquarie Capital for the US and Latin
America.
“As an active developer in infrastructure assets globally,
Macquarie believes there is tremendous opportunity for this asset
class, and looks forward to continuing to grow its presence with
leading innovators in the space including AMS, CIT and Tesla,” said
Nick Butcher, Global Head of Infrastructure for Macquarie
Capital.
“CIT is pleased to achieve this landmark project finance
transaction, further demonstrating our commitment to supporting
innovation and sustainable solutions in the energy sector,” said
Mike Lorusso, group head and managing director of CIT’s Energy
Finance business. “Our deep expertise and track record of execution
in financing distributed power assets allowed CIT to design a
market-leading solution in support of Macquarie Capital, AMS and
Tesla. We look forward to further building on our relationship with
these pioneers,” said Rhys Marsh, director in CIT’s Energy Finance
business.
The fleet of energy storage systems, which will be located at
various large-load commercial, industrial and government host sites
in Los Angeles and Orange counties, will be used for utility grid
services including flexible and reserve capacity, solar integration
and voltage management in addition to retail energy services such
as demand management, back up generation and enhanced power
quality.
AMS, which led the development of the portfolio, will serve as
the asset manager of the projects. “Macquarie is financing a
revolution in the energy industry,” said Susan Kennedy, CEO of AMS.
“The era of energy storage has begun.” SCE, which is California’s
second largest utility, will purchase capacity from the
Macquarie-owned fleet of behind-the-meter, battery-based energy
storage systems under 10-year capacity contracts to provide load
reduction services as part of SCE’s plan to modernize the grid by
2022.
About Macquarie and Macquarie Capital
Macquarie Group (Macquarie) is a global provider of banking,
financial, advisory, investment and funds management services.
Macquarie’s main business focus is making returns by providing a
diversified range of services to clients. Macquarie acts on behalf
of institutional, corporate and retail clients and counterparties
around the world. Founded in 1969, Macquarie operates in more than
70 office locations in 28 countries. Macquarie employs
approximately 13,800 people and has assets under management of over
$377 billion (as of September 30, 2016).
Macquarie Capital comprises Macquarie Group’s corporate
advisory, capital markets and principal investing capabilities.
Macquarie Capital’s expertise spans a variety of industry sectors
including telecommunications, media, entertainment, gaming,
financial institutions, consumer, leisure, energy, resources, real
estate, infrastructure, utilities and renewables.
Macquarie Capital's Power, Utilities and Renewables team
combines corporate advisory expertise and principal investing
experience with a dedicated focus on companies operating in the
generation, transmission, distribution, retail energy marketing,
midstream, water, solar, wind, storage, biomass, and waste
industries. With dedicated power, utilities and renewables
professionals in New York, Toronto and Austin, Macquarie Capital is
a substantial and active player in the North American market.
About Advanced Microgrid Solutions
Advanced Microgrid Solutions (AMS) is pioneering the use of
advanced energy storage systems for electric utility grid support.
The company designs, finances, installs and manages advanced energy
storage solutions for commercial, industrial and government
building owners. AMS’s unique fleet management software provides
optimized resource management, cost reduction and revenue
generation for large scale energy users. AMS is developing the
first fleet of Hybrid Electric Buildings® in the world for The
Irvine Company in Irvine, California. To learn more visit
http://www.advmicrogrid.com/.
About CIT
Founded in 1908, CIT (NYSE: CIT) is a financial holding company
with more than $64.2 billion in assets. Its principal bank
subsidiary, CIT Bank, N.A., (Member FDIC, Equal Housing Lender) has
more than $30 billion of deposits and more than $40 billion of
assets. It provides financing, leasing and advisory services
principally to middle market companies across more than 30
industries primarily in North America, and equipment financing and
leasing solutions to the transportation sector. It also offers
products and services to consumers through its Internet bank
franchise and a network of retail branches in Southern California,
operating as OneWest Bank, a division of CIT Bank, N.A. cit.com
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version on businesswire.com: http://www.businesswire.com/news/home/20170327005297/en/
Media:Macquarie GroupRishi Sharma, (212)
231-0494rishi.sharma@macquarie.com
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