Revolve provides update on commissioning of its battery energy storage system BESS project located in Cancun,
Mexico. Revolve Renewable Power Corp. (TSXV: REVV) (“Revolve” or the “Company“) is pleased to provide a further update on the progress of its 3.2MWh (“megawatt per hour”) Battery Energy Storage System (or “BESS”)(the “Project”) project located in Cancun, Mexico. This is the first BESS project that the Company signed under its new division, Revolve Renewable Business Solutions. See News Release dated September 15, 2022.
The majority of installation and commissioning works have now been completed at the Project and it is expected to be fully operational and revenue generating from May 1, 2023.
Project Overview
- The 3.2MWh battery storage system is being installed at the site of a major hotel chain in Cancun, Mexico.
- Revolve is the 100% the owner of the Project and has responsibility for the financing, installation and operation of the BESS system.
- A 10-year Energy Services Agreement (or “ESA”) has been signed between the Company and the hotel operator for the provision of peak shaving and other energy related services.
- Under the ESA agreement Revolve will receive an annual fixed payment in addition to sharing the energy savings delivered by the Project over the 10-year contract period.
- An Engineering Procurement Contract (or “EPC”) has been signed with Quartux Mexico S.A. de C.V. (or “Quartux”), a highly experienced installer and operator of battery storage systems in Mexico, to deliver a turnkey solution for the installation and commissioning of the BESS system.
- In addition to the EPC a 10-year Maintenance Agreement has also been signed with Quartux for the day-to-day operation and optimization of the system including all routine maintenance.
- The project is expected to cost approximately US$1.8m to install and commission including all related financing and transaction costs.
Project Update
Quartux have provided the Company with an update on the installation works for the Project, which is summarized as follows:
- Delivery of the entire BESS system to project site has now been completed.
- Installation and commissioning of the first two BESS units representing c.70% of the project has also been completed and both of these units are operational.
- Installation of the final BESS unit is due to commence this week and full commissioning is expected before the end of April 2023.
- Construction, installation and commissioning costs for the Project remain in line with previous guidance.
- The Project is forecast to be fully operational and revenue generating from May 1, 2023 under the 10 year ESA agreement.
Project Financing
Revolve financed this project through a combination of cash on hand and a secured loan (the “Secured Loan”) of C$1.86m from RE Royalties Ltd. (or “RER”). See News release dated October 16, 2022.
Drawdown of the Secured Loan was based on certain project related milestones. Given the progress on the Project as outlined above the Company has now completed the final drawdown under this facility of C$368,249.
Eric Hickert (Head of Distributed Generation) commented, “The Cancun BESS project is now moving into the final stages with full commissioning expected in the coming weeks. We continue to see increasing demand for similar projects across our target markets and remain confident of securing further new projects in the short term.”
About Revolve
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 approx. 2,350MW under development. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW “behind the meter” distributed generation (or “DG”) assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase and 71.8MW under development.
Revolve has an accomplished management team with a demonstrated track record of taking projects from “greenfield” through to “ready to build” (or “RTB”) status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 1,550MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
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Revolve Provides Update on Commissioning of its BESS Project Located in Cancun, Mexico, VANCOUVER, BC, April 4, 2023
