ReVolve Renewable Power Corp (TSX-V:REVV) has announced the completion of its 3.2 megawatt per hour (MWh) Battery Energy Storage System (BESS) project in Cancun, Mexico, which is now generating recurring revenues.
This marks Revolve's first battery storage system in its portfolio and its seventh operating asset in the Distributed Generation division under the name Revolve Renewable Business Solutions.
The BESS system, installed at a major hotel chain in Cancun, is wholly owned by Revolve, which was responsible for its financing, installation, and operation.
The company signed a 10-year Energy Services Agreement (ESA) with the hotel operator to provide peak shaving and other energy-related services. The agreement ensures an annual fixed payment to Revolve along with a share of the energy savings delivered by the project over the contract period.
Revolve partnered with Quartux Mexico S.A. de C.V., an experienced installer and operator of battery storage systems in Mexico, to deliver a turnkey solution for the installation and commissioning of the BESS system. Quartux also signed a 10-year maintenance agreement to handle the day-to-day operation and optimization of the system, including routine maintenance.
Eric Hickert, head of Distributed Generation (DG) at Revolve, expressed his satisfaction with the successful commissioning of the Cancun BESS project. He emphasized its significance as the first operational battery storage project in the DG portfolio and the first project since the acquisition of Centrica Business Solutions.
Hickert also mentioned the growing momentum in Revolve's DG business unit and expressed confidence in signing more DG projects in the near future.
Revolve financed the Cancun project through a combination of cash on hand and a secured loan from RE Royalties Ltd.
The company remains focused on developing utility-scale wind, solar, and battery storage projects in the US and Mexico, with a portfolio of approximately 2,450MW under development.
Meanwhile, its Revolve Renewable Business Solutions division is rapidly expanding its revenue-generating DG assets, with an operating portfolio of 6MW and an additional 3MW under construction. The company's ambitious target is to reach 5,000MW of utility-scale projects under development in the US and Mexico.
Contact the author at jon.hopkins@proactiveinvestors.com