SWITCH Power acquires 4 behind the meter battery energy storage systems from Peak Power

Alberta — SWITCH Power announced the successful acquisition of a portfolio of behind the meter (“BTM”) battery energy storage systems (“BESS”) from Peak Power.

Key Highlights:

1. 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
2. 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
3. It is estimated the portfolio will offset nearly 1,170 tonnes of CO2 per year
4. The 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.

It’s 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.

“This acquisition further solidifies our presence in distributed generation and storage, validates our electricity as a service platform, and, with it, adds imminent cashflow,” said Trevor White, President and CEO of SWITCH Power.

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.


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