The fast-expanding UK energy storage sector received a further boost today, after Statera Energy and NatWest announced they had completed a major new financing deal worth £110m to support eight flexible grid projects. However, the funding is also set to support the development of new natural gas-power generation and as such will further fuel the debate over the role of gas power capacity in the UK’s grid. NatWest acted as lead arranger, lender, facility agent, security trustee, and hedge counterparty for the deal, which will support the development of eight projects comprising of new flexible natural gas-power generation and battery energy storage technologies, which will together create 400MW of energy capacity for the UK market. The companies said the projects would “support the continued growth of renewable energy in the UK by assisting the National Grid in balancing intermittent renewable generation during times of peak demand and in moving away from older, inflexible and more carbon intensive forms of generation to a cleaner energy supply mix”. The transaction is underpinned by a 15-year power purchase agreement with Statkraft, which has entered into a strategic long-term partnership with Statera Energy to realise over 1GW of energy storage and utility scale, flexible gas-powered generation to support the growth of the portfolio.
Business Green 9th March 2021 read more »