• News
  • Exclusive Articles
  • Press Releases
  • Solar

KiloWattsol advises lenders on first ever structured finance PV & Li-Ion storage deal


9MWp project Bardzour is a great example of the reliability and predictability of Renewable energies

An often stated argument against supporting the progression of Renewables as a source of energy, and that of PV in particular, is the fact that the energy output depends on the amount of solar irradiation instantly available. It would hence be impossible to increase or decrease the number of Watt hours injected into the grid during the day, which would lead to an electricity production unable to take into account the amount of energy required, which could potentially lead to blackouts.

The work carried out by independent Technical Advisor kiloWattsol on €34 000 000 Project Bardzour situated on the island of La Réunion in the Indian Ocean proves this thesis wrong. The first ever PV & storage project to access structured finance is built and operated according to the French energy regulating body CRE’s specifications. On its completion, it will become a vital part of the island’s energy infrastructure. The project consists of a PV power generating system with a nominal power of 9MWp, and a Li-Ion battery storage solution with a capacity of 9MWh, which will supply energy for a consumption equivalent to that of 13 500 persons. The band-breaking aspect of this project is the fact that the operator commits the amount of energy injected into the grid one day prior to the actual production, which allows the grid operator to synchronise the Bardzour plant’s output with that of the conventional power plants on the island. A penalty scheme encourages the power plant’s operator to respect these regulations.

The lender consortium of Natixis-Energeco, Agence Française du Développement and Caisse d’Epargne for this project, developed by AKUO Energy, mandated kiloWattsol and its partner NaturalPower to carry out a technical Due-Diligence including the development of a purpose-built simulation tool, allowing to assess the amount of “saleable energy” generated by the system. Besides the fact that this project is located on an island, making the determination of solar irradiation more difficult, the grid is also more fragile, because of its size and the limited number of energy producing units compared to what we know in Europe. This turns the island into an ideal laboratory for grid stability. Combined systems like Bardzour clearly are a major step towards maturity for renewable energy sources and the role they will play on tomorrow’s energy market.

 

To read the full content,
please download the PDF below.