As at September 24, 2021Show prices
CALGARY, Alberta, Sept. 07, 2021 (GLOBE NEWSWIRE) — SWITCH Power Corporation (“SWITCH”) is excited to announce the successful acquisition of a portfolio of behind the meter (“BTM”) battery energy storage systems (“BESS”) from Peak Power Inc (“Peak”).
- SWITCH will acquire four operating BESS assets from Peak, with a planned second closing of 10 late-stage development projects, all located in the greater Toronto area
- In aggregate, the portfolio represents 25 megawatts (MW) and 44 megawatt-hours (MWh) of energy capacity, and $26M of capital deployment over the next 18 months
- It is estimated the portfolio will offset nearly 1,170 tonnes of CO2 per year
- Acquisition will secure SWITCH an estimated 20% market share in a high-growth market
The portfolio, situated in the greater Toronto area, consists of four operational energy storage systems. SWITCH anticipates an imminent acquisition of a second portfolio of ten additional BESS in late-stage development from Peak, subject to normal closing conditions. Its expected that most of the remaining BESS will be commissioned in 2022, with the remaining online in 2023, requiring capital deployment of $26 million in aggregate over that same period. The portfolio represents 25 MW and 44 MW of energy capacity deployed with large real-estate, asset management, and industrial customers. It is estimated the portfolio will offset nearly 1,170 tonnes of CO2 per year, equivalent to taking over 250 gas-powered cars off the road. This acquisition will secure SWITCH an estimated 20% market share in a high-growth market.
The facilities are equipped with Peak Power’s Synergy software, a scalable AI-powered platform that uses inputs from electricity markets to enable energy storage resources to communicate directly with buildings and the grid, creating additional cost savings and revenue streams. Battery systems can charge and discharge at the most profitable moments, transforming buildings into distributed grid assets.
These energy storage systems will accelerate Ontario’s transition to a decentralized, decarbonized, and resilient electricity grid. For customers, they will help put the environment on the balance sheet by reducing their emissions while lowering costs and unlocking new revenues through electricity use optimization. Powered by Peak’s Synergy software, a scalable AI-powered platform, the portfolio will also generate revenue from ancillary service streams from Ontario’s Independent Electricity System Operator (“IESO”).
“This acquisition further solidifies our presence in distributed generation and storage, validates our electricity as a service platform, and, with it, adds imminent cashflow. This, alongside our current pipeline of development projects positions us well to be a leader in this market in the years to come,” In addition, this expedites our foray into energy storage and the many ancillaries benefits it provides, which have applications across our portfolio of development projects in various regions,” said Trevor White, President and CEO of SWITCH Power. “We’re excited to start this partnership with Peak Power and their market leading technology,” he added.
“This opens a new chapter for Peak Power.” Says Derek Lim Soo, CEO of Peak Power. “Our partnership with SWITCH Power allows us to direct more focus on developing and scaling our product, which already generates significant revenues and environmental benefit for our customers. This partnership validates our projects already in progress and prove that battery storage is an attractive investment. This is a great step for widespread adoption of distributed energy resources.”
The financing for this transaction was completed through a combination of cash and an acquisition term loan from RE Royalties. RE Royalties is also in discussion to provide financing through a construction loan to support the buildout of the development portfolio as part of the second closing.
Bernard Tan, CEO of RE Royalties stated, “We are pleased to support SWITCH Power on this portfolio acquisition in the Ontario battery storage market. We have worked side-by-side with the SWITCH Power team over the past few months and they have a very experienced team in operating these assets. We look forward to working with them in the future with the expansion of their energy storage portfolio.”
About Peak Power
Peak Power is a Toronto-based climate tech company that enables contributors to climate change to be a part of the solution. Peak designs and delivers AI-powered software that transforms buildings from static energy consumers into dynamic, revenue-generating assets. Their technology optimizes commercial buildings through the intelligent management of energy use, energy storage, and EV grid integration. Peak Power’s solutions reduce infrastructure operating costs and environmental footprint while decreasing strain on the grid. Peak Power works with real estate, energy, and transportation partners to transform and connect these historically disparate sectors through intelligent clean energy software.
About RE Royalties
RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately held and publicly traded renewable energy generation and development companies. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns 84 royalties on solar, wind and hydro projects in Canada, Europe, and the United States. The Company’s business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
About SWITCH Power Corporation
SWITCH Power is an Alberta-based sustainable power developer, asset manager and independent power producer. SWITCH targets underserved and niche markets to develop, finance, build, own and operate distributed power infrastructure, with a focus on customer facing projects with an inherent value proposition, through an electricity as a service model. Their diverse portfolio spans across multiple technology, geographical, and customer segments, each presenting scale and providing a diverse portfolio of sustainable generation.
For further information:
Trevor White, President & CEO
c/o SWITCH Power Corp
Floor 19, 700 2nd Street SW,
Calgary, AB T2P 2W2, Canada