TagEnergy Expands with 6GW Australian Renewable Acquisition

• TagEnergy boosts its Australian footprint with ACE Power acquisition, adding 6 GW in solar, wind, and storage, enhancing project flexibility and financing opportunities.

TagEnergy has expanded its Australian operations by acquiring ACE Power, adding a 6 GW pipeline of solar, wind, and storage projects. This acquisition integrates a 27-person team into TagEnergy, significantly increasing its project pipeline and providing flexibility in project sequencing around infrastructure upgrades and storage revenues. The strategic move focuses on speed and bankability, leveraging hybridization to enhance competitive advantage by co-locating batteries with PV systems to optimize interconnection and cash flow.

The acquisition facilitates easier financing through a larger, diversified portfolio, attracting cheaper debt and enabling capital recycling. With rising data-center demand in New South Wales and Queensland and upcoming federal storage tenders, TagEnergy's expanded portfolio is well-timed. Immediate goals include final investment decisions on mature sites, awarding EPC contracts, and commencing construction under new ownership.

How will TagEnergy's acquisition of ACE Power impact its project pipeline and financing strategy?

• Enhanced Project Pipeline: The acquisition of ACE Power adds a substantial 6 GW of solar, wind, and storage projects to TagEnergy's portfolio, significantly expanding its project pipeline and allowing for greater flexibility in project sequencing.
• Increased Team Capacity: Integrating a 27-person team from ACE Power enhances TagEnergy's operational capacity, providing additional expertise and resources to manage and execute the expanded project pipeline effectively.
• Strategic Hybridization: By co-locating batteries with photovoltaic (PV) systems, TagEnergy can optimize interconnection and cash flow, enhancing its competitive advantage and improving project bankability.
• Improved Financing Opportunities: The acquisition creates a larger, more diversified portfolio, which can attract cheaper debt and facilitate capital recycling, making it easier to secure financing for new projects.
• Alignment with Market Demand: The expanded portfolio positions TagEnergy to capitalize on rising data-center demand in New South Wales and Queensland, as well as upcoming federal storage tenders, ensuring strategic alignment with market needs.
• Focus on Speed and Bankability: The acquisition allows TagEnergy to focus on speed and bankability, enabling quicker final investment decisions on mature sites, awarding of EPC contracts, and commencement of construction.
• Infrastructure and Storage Revenue Optimization: The acquisition provides flexibility in project sequencing, allowing TagEnergy to optimize around infrastructure upgrades and storage revenues, enhancing overall project viability.
• Capital Recycling and Debt Attraction: With a larger portfolio, TagEnergy can engage in capital recycling, attracting cheaper debt and improving financial efficiency across its projects.
• Immediate Project Advancement: The acquisition supports immediate goals such as making final investment decisions on mature sites, awarding EPC contracts, and starting construction under new ownership, accelerating project timelines.