GRID is the UK’s largest fund investing in utility-scale BESS projects. It currently owns and operates 20 percent of BESS sites across the country. The consortium refinancing the portfolio’s development includes NORD/LB, Santander, CBA, Rabobank and Aviva, with IDCM acting as financial advisor.
The BESS assets are strategically located across the UK and all have entered operation. The funds will be used to undertake augmentation works on the sites that will increase battery capacity and unlock new revenue streams.
GRID has recently secured two long-term floor agreements with Statkraft Markets GmbH and Markel Bermuda Limited, covering 50 percent of the portfolio’s total future revenues. These agreements will help protect against market volatility and ensure a steady revenue stream for the portfolio.
“We’re thrilled to partner with Santander, CBA, Rabobank and Aviva on refinancing GRID’s latest portfolio of important BESS sites located throughout the UK” said Pablo Cervo, Associate Director at NORD/LB. “These projects will play a vital role in accelerating the UK’s renewable energy transition, creating greater flexibility and stability for the National Grid.”
Ben Guest, Fund Manager of Gresham House Energy Storage Fund plc & Managing Director of Gresham House Energy Transition, added that the refinancing, underpinned by long-term floor agreements, enables the company to act on its growth plans while repositioning the business as lower risk.
“We are pleased to be working with our new lending group as we proceed with the next stage of our ambitious plans and are grateful for the support and confidence they have shown in us and our sector” said Mr Guest.
Burges Salmon acted as the consortium’s legal adviser on the deal, while Eversheds Sutherland acted as GRID’s legal adviser.
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