Santander and NatWest Help Fuel Landmark £220m Investment in UK’s Battery Future

Image Credit: Pulse Clean Energy

Pulse Clean Energy has raised £220 million from a group of leading international banks in what is being described as one of the largest private debt deals for battery storage infrastructure in the UK. The financing consortium includes Santander, NatWest, ABN AMRO, NORDLB, Investec, and CIBC.

This green funding package will support the development of six major battery energy storage projects, with a combined capacity exceeding 700 megawatt-hours. These projects are spread across multiple regions, including Scotland, Devon, Greater Manchester, and Wales. Notably, four of the sites will repurpose former diesel generator facilities, giving them a second life in the renewable era. The deal also covers nine other sites that are either already operational or in the final stages of development.

Once up and running, these projects are expected to deliver more than £200 million in gas and carbon emissions savings for UK energy consumers. Just as significantly, they will enhance the grid’s ability to handle the increasing share of renewable energy by providing critical storage capacity during times of fluctuating supply and demand.

The deal is being seen as a clear signal of growing investor confidence in Britain’s battery storage market. Just over a year ago, Pulse secured backing from the National Wealth Fund in May 2023. That marked the government-backed fund’s first foray into battery storage debt financing. However, as the market has matured and gained commercial viability, private capital has stepped in to take the reins.

What makes this development particularly significant is the shift in tone. A space that once relied on early-stage public support is now standing tall on the strength of private investment. It reflects a broader evolution within the energy transition, one where innovative infrastructure is no longer just a policy objective but a commercially attractive proposition in its own right.

“This landmark investment reflects strong global confidence in the growing UK battery storage market and in Pulse Clean Energy’s ability to deliver at scale,” said Nicola Johnson, Chief Financial Officer of Pulse Clean Energy.

“These six facilities will not only strengthen grid resilience but also unlock significant cost savings for consumers by allowing more renewable power onto the grid and reducing the need for expensive backup power during peak periods.