UK BESS financing: Pulse, AMP Clean Energy land major investments
Two big names in the UK battery energy storage system (BESS) sector have received major funding injections to support the growth of the UK BESS market.
The UK government’s National Wealth Fund (NWF) has announced it has made a £50 million equity investment into AMP Clean Energy, which will primarily be used to roll out battery energy storage assets across the UK.
Funding will be used to support AMP Clean Energy’s development of its Battery Box sites, which are micro-scale BESS units designed to connect directly to the local distribution network and be located near high-demand sites such as homes, schools and hospitals. Each Battery Box has a 200kW/800kWh capacity and requires only the equivalent area of two car parking spaces. AMP Clean Energy currently has over 1,075 Battery Box sites in development across the UK.
Mark Tarry, CEO of AMP Clean Energy, said that the backing “will accelerate our ability to build the kind of energy infrastructure the UK needs: practical, low-carbon projects that support both local grid flexibility and industrial decarbonisation”. He added that the investment will help the firm go “further and faster” to support the nation in its clean energy goals.
Chancellor of the exchequer Rachel Reeves said: “Investing to decarbonise the grid will help supply secure, affordable, and renewable energy which is good for growth, businesses and jobs. Fuelling the clean energy revolution with local projects like this is a vital part of our Plan for Change.”
Related:Field enlists Envision Energy for two 100MWh BESS projects in Scotland
Pulse lands £220 million funding injection
Meanwhile, Pulse Clean Energy has today (4 August) announced that it has closed a £220 million green finance deal to support the development of six new BESS projects in the UK.
The debt raise was funded by a consortium of six international banks, led by Santander CIB. The banks involved are Santander, NatWest, ABN AMRO, NORD/LB, Investec and CIBC. Eversheds Sutherland advised Pulse Clean Energy as legal counsel, Watson Farley & Williams served as legal counsel for the lenders and Chatham Financial acted as hedging advisor.
The six projects that this finance package will be used to develop have a collective capacity of over 700MWh, and will be located around the UK with sites based in Scotland, Devon, Greater Manchester and Wales.
Four of the now-funded projects will see former diesel generators converted to BESS assets, and part of the funding will also support the ongoing needs of nine BESS sites already in operation or in the later stages of construction. All of the assets financed by this deal are set to become operational by late 2027.
Related:HiTHIUM, Elements Green ink deal for 720MWh UK BESS project
Pulse Clean Energy has previously been backed by the NWF, with the NWF forming part of a funding consortium investing in Pulse in May 2023. However, Pulse states that the maturing of the BESS market and growing interest from international investors has allowed the NWF to “step back” from investing in Pulse.
Nicola Johnson, chief financial officer of Pulse Clean Energy, said that the landmark investment “reflects strong global confidence in the growing UK battery storage market and in Pulse Clean Energy’s ability to deliver at scale”.
She added: “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.”