UK Infrastructure Bank Extends £60 Million Financing to Fuel Kent Energy Storage Park Project
Updated: Nov 5
In a strategic move to fortify the nation's energy infrastructure, the UK Infrastructure Bank has unveiled an impressive £60 million loan to bolster the development of a cutting-edge 249MW energy storage park. Nestled on the grounds of a former thermal power station in the picturesque Kent region, the Sheaf Energy Park is poised to become an illustrious benchmark among the UK's battery storage marvels.
This momentous financing initiative orchestrated by the public infrastructure bank stands as a pivotal segment within a grand £120 million debt orchestration meticulously crafted by the financial prowess of NatWest. As the Sheaf Energy Park aspires to reign as one of the foremost standalone battery storage endeavours across the realm, the UK Infrastructure Bank's bold investment echoes its unwavering commitment to catalyzing colossal storage undertakings, expediting their journey to fruition. Moreover, this financial backing also lends invaluable credence to the burgeoning energy storage sector, infusing it with much-needed market assurance.
UK Infrastructure Bank CEO John Flint said the deal with developer Pacific Green was a "great example" of how the Bank's debt financing could help "accelerate large storage projects and bring them online sooner while providing crucial market confidence in the sector".
"The rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast," he said. "That means scaling this technology, which in turn presents challenges for the market. This is exactly why the Bank is here."
Notably, this significant deal marks the UK Infrastructure Bank's second foray into the dynamic battery storage sector, following its substantial £62.5 million commitment to the ambitious Pulse Clean Energy project earlier in the year. Additionally, the bank has also demonstrated its financial acumen with significant investments of £200 million into the Equitix UK Electricity Storage Fund and Gresham House Income Renewable Energy & Storage LP (SIRES).
Economic Secretary to the Treasury Andrew Griffith hailed the jobs potential of the investment, as he stressed that "energy security had never been more important" to the country.
"This £60m investment will turbocharge efforts to boost our grid capacity - helping Pacific Green create the largest battery storage project in the country - creating 56 jobs along the way," he said.
Jacob Lloyd, head of specialist asset finance at NatWest, hailed the impact of the "market-leading debt structure" developed for the project.
"Battery Energy Storage continues to play a big role in the UK's grid stability, and we look forward to working further with Pacific Green and UK Infrastructure Bank on the future of energy transition," he said.