DLA Piper advises on first-of-its-kind financing of battery energy storage projects in Taiwan

DLA Piper has advised Hartree Partners Singapore on its NTD1,400 million financing of a portfolio of standalone utility-scale battery energy storage system projects (BESS) in Taiwan, with an approximate aggregate installed capacity of 50MW. This is a first-of-its-kind transaction in Taiwan and Asia and was recognized by Project Finance International (PFI) as the “Asia-Pacific Battery Deal of the Year 2022”.

The project was developed and financed through Iontree, a joint venture between Hartree Partners Singapore (a subsidiary of Hartree Partners, LP and an active developer of BESS assets globally) and Skwentex International Corporation (a Taiwanese company active in solar projects). Iontree’s standalone BESS projects will participate in the Taiwan Automatic Frequency Control market, bidding in the Energy Trading Platform established by Taiwan Power Company (Taipower).

The debt facilities for Iontree were structured by The Hongkong and Shanghai Banking Corporation Limited and Cathay United Bank as a senior-secured project finance facility with innovative features providing Iontree further flexibility to expand its portfolio of BESS projects in Taiwan in the future. Financial close on the debt facilities was achieved in December 2022.

Vincent Seah, Partner in the Singapore office, led the DLA Piper team on this transaction and was supported by Zack Lin, Senior Associate and Darren Foo, Associate. Vincent Seah commented: “We are pleased to assist Hartree and Iontree on this truly innovative and pioneering transaction which we hope will encourage further BESS projects in Taiwan and the Asia-Pacific as the global energy transition continues to gain momentum. The deal also underscores DLA Piper’s capability to assist clients in the development and financing of innovative, first-of-a-kind projects and highlights our ability to offer our clients specialist services for energy transition projects across the region.”