Beacon Power Corp. has closed on a $43 million loan guaranteed by the U.S. Department of Energy (DOE). The transaction closes the financing for Beacon's 20 MW flywheel energy storage plant, now under construction in Stephentown, N.Y.
The Stephentown plant's flywheel systems are designed to provide frequency regulation services to help stabilize and enhance the performance of the New York power grid and enable greater use of renewable energy sources such as wind and solar. At 20 MW, the facility is expected to provide approximately 10% of New York's total frequency regulation capacity on a typical day.
The $43 million loan is funded by the U.S. Treasury's Federal Financing Bank and covers 62.5% of the plant's estimated $69 million cost. Approximately $55 million of this amount is for direct equipment and facility costs. Beacon's equity contribution of roughly $26 million is in place and includes a combination of cash, in-kind assets, and other eligible project costs.
Beacon will immediately begin submitting disbursement requests and continue to do so each month, based on progress toward project completion and subject to compliance with disbursement conditions and covenants. The New York State Energy Research and Development Authority is also providing $2 million in funding for the plant.
The Stephentown project is progressing on time and on budget, according to Beacon. Four MW at the plant are expected to be online and earning revenue by the end of the year. The facility is scheduled to be fully energized with 20 MW online and earning revenue by the end of the first quarter of 2011.
SOURCE: Beacon Power Corp.