Siemens Financial Services (SFS) will offer finance to support customers of Fluence, a Siemens and AES joint venture company, for their investments in energy storage.
The financing program will offer customers leasing and project finance options for qualified projects using Fluence’s trio of energy storage platforms.
“SFS stands ready to provide significant capital to address the needs of the growing energy storage market through our program with Fluence,” Roland Chalons-Browne, chief executive, Siemens Financial Services said.
“Providing customers access to market-leading energy storage technology and the capital needed to realize energy storage projects – regardless of size or region – is unique and will help the market grow exponentially.”
Starting operations this month, Fluence was created to provide customized energy storage and services required by customers and financial institutions.
Fluence combines a set of industrial-scale energy storage offerings with the track record, scale, global reach and backing of two large, established power-sector companies. It offers nearly 500 MW of energy storage projects deployed or contracted in 15 countries.
“With this SFS financing program, we can offer our customers a wide array of capital solutions ranging from small-ticket leases to large-scale project financing and everything in between,” said Stephen Coughlin, chief executive of Fluence. “Financing is often viewed as an obstacle; however by working with SFS, we are simplifying energy storage capital investments for many of our customers, allowing them to move their storage projects forward.”
The financing program with Fluence allows support to clients including commercial & industrial (C&I) energy users to utilities and grid operators.
“C&I customers typically have smaller-scale projects and are looking for cash-neutral financing options, in which case equipment leasing or performance contracting solutions might work best,” said Jan Teichmann, vice president of global markets for Fluence. “For utilities and grid operators, their larger, more complex energy storage projects call for project finance in the form of a debt or an equity investment. Working with SFS, we can offer the full spectrum of capital solutions to meet needs as diverse as our customers.”
Previous SFS deals have included:
- United States: Through a project finance solution, SFS provided a portion of the senior debt financing for a term loan to support the construction of AES’s 100 megawatt (MW)/400MWh battery system in Southern California, which is tied to a new, 1,284 MW combined-cycle natural gas generator. The system will replace 1960’s-era power plants in Los Alamitos, Huntington Beach, and Redondo Beach.
- Germany: SFS established a program to provide packaged managed service solutions for municipalities eligible to participate in Germany’s Frequence reserve control market. The program includes projects in the range of five to eight MW peak power that use Siemens’ SIESTORAGE systems.
- United Kingdom: SFS in the United Kingdom recently announced an outcome-based finance model for purchases of Fluence’s Siestorage energy storage systems, which are available to users with on-site electricity demand profiles anywhere between 1MW and 100MW.