VANCOUVER, BC / ACCESSWIRE / May 24, 2023 / Revolve Renewable Power Corp. (TSXV:REVV) ("Revolve" or the "Company") is pleased to announce that final commissioning has been completed on its 3.2MWh ("megawatt per hour") Battery Energy Storage System (or "BESS") project located in Cancun, Mexico (the "Project") and is now generating recurring revenues.
This Project is Revolve's 7th operating asset in its Distributed Generation division, operating under the name Revolve Renewable Business Solutions, and is its first battery storage system in its portfolio (See News Release dated September 15, 2022). https://money.tmx.com/en/quote/REVV/news/5377287865811312/Revolve_Grows_its_Distributed_Generation_Portfolio_by_an_Additional_32MWh). Revolve Business Solutions now owns and operates a porftolio of 6MW of rooftop solar, CHP and battery storage projects.
Project Overview
- The 3.2MWh battery storage system is installed at the site of a major hotel chain in Cancun, Mexico;
- Revolve owns the Project 100% and is responsible for the financing, installation and operation of the BESS system;
- A 10-year Energy Services Agreement (or "ESA") was 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") was 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 was also signed with Quartux for the day-to-day operation and optimization of the system including all routine maintenance;
- The Project was installed and commissioned at a cost of approximately US$1.8m including all related financing and transaction costs.
Project Update
- Final testing and commissioning of the Project was completed over the last two weeks and the Project is now fully operational;
- The Project is generating energy cost savings under the ESA Agreement and will contribute to the Company's revenue and cashflow beginning in the quarter and year ending June 30, 2023;
- The Project was delivered within budget and within a few weeks of the original target commissioning date;
- An overview of the Project is provided in the following short video:
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. (see News release dated October 16, 2022.) https://money.tmx.com/en/quote/REVV/news/7243047530528001/Revolve_Completes_Project_Financing_with_RE_Royalties
Eric Hickert (Head of Distributed Generation) commented, "We are delighted to have achieved the successful commissioning of the Cancun BESS project. The commissioning marks an important milestone for the Company being the first operational battery storage project in our DG portfolio, while also representing the first project delivered by the Revolve team since the acquisition of Centrica Business Solutions in August last year. We are seeing growing momentum in our DG business unit and remain confident of signing further DG 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. 2,450MW 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 6MW with an additional 3MW under construction.
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 assets.
For further information contact:
Steve Dalton, CEO
[email protected]
Or
Sunita Prasad
VP, Corporate Development & Investor Relations
Phone: +1 778-885-5550
[email protected]
Forward Looking Information
Although Revolve believes, considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Revolve can give no assurance that they will prove to be correct. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the business plans of Revolve and Revolve's management's expectation on the growth and performance of its business in the United States and Mexico, including the planned MW capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; the completion and timing of the development of its planned portfolio of distributed generation projects; the completion of the Transaction, including final approval of the transaction by the TSXV; potential revenues and cashflows generated from its DG division; and the Company's plans to develop, construct and finance rooftop solar, battery storage and energy efficiency projects of up to 5MW and enter into long term power purchase agreements for the sale of electricity from the projects with the underlying customers. Such statements and information reflect the current view of Revolve and/or Revolve, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to the Company's projects and Revolve's ability to continue as going concern. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information, including but not limited to: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company's supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely fashion, or at all; risks related to the development and potential development of the Company's projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company's continuous disclosure filings on SEDAR. Such statements and information reflect the current view of Revolve. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this press release represents the expectations of Revolve as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Revolve does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Revolve Renewable Power Corp.