Revolve Renewable Power Corp said it has signed a financing agreement with RE Royalties Ltd (RER) for the provision of a C$1.86 million secured loan, which will be used to partly fund the company's first battery storage system (BESS).
The company said the 3.2 megawatts hour (MWh) system will be installed at the site of a major hotel chain in Cancun, Mexico. Installation works for the project have already begun and it is expected to be fully commissioned during the first quarter of 2023.
In a statement, Eric Hickert, CEO of Revolve Business Solutions commented: "We are delighted to close a further loan facility with RE Royalties for our first BESS project. We are excited by the growing momentum behind our distribution generation business and look forward to working with experienced funders such as RE Royalties as we secure further new projects in the months ahead."
READ: Revolve Renewable Power signs energy services contract for new 3.2 MWh Battery Energy Storage System
The financing agreement consists of a secured loan agreement and a royalty agreement between Revolve and RER.
Revolve said the first tranche of the secured loan has already been drawn down with the remaining balance to be drawn down subject to certain project-related milestones.
The secured loan will have a term of 24 months and will be repayable at maturity. Interest of 12% is applied on drawn funds, with interest payable on a quarterly basis during the term.
The company will pay RER a financing fee of 2% of the secured loan amount. The loan will be secured by certain assets of the company.
Revolve will also enter into a royalty agreement with RER under which RER will receive a royalty of 5% on gross revenues generated by the project for the term of the Energy Services Agreement (ESA).
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of around 3,600 megawatts (MW) under development.
The company has a second division, Revolve Renewable Business Solutions, which installs and operates sub 20MW "behind the meter" distributed generation assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase.
Revolve has developed and sold over 300MW of projects to date, and going forward, it is targeting 5,000MW of utility-scale projects under development in the US and Mexico. It is also rapidly growing its portfolio of revenue-generating distributed generation assets.
Contact the author at jon.hopkins@proactiveinvestors.com