In Short : Pacific Green Energy Group has successfully reached financial close for a funding package totaling £120 million (approximately US$146 million) for its 249 MW / 373.5 MWh Sheaf Energy Park battery energy storage development. This significant financial milestone demonstrates the growing investor confidence in large-scale energy storage projects and their crucial role in enhancing grid stability and facilitating the integration of renewable energy sources. The funding will enable the Sheaf Energy Park to advance toward construction, contributing to the UK’s renewable energy capacity and supporting the transition to a more sustainable energy landscape.
In Detail : Pacific Green announces that it has reached financial close on a £120 million (US$146 million) senior debt facility (the “Facility”) for Pacific Green’s 249 MW / 373.5 MWh Sheaf Energy Park battery energy storage system in Kent, England (“Sheaf Energy Park”).
The Facility is provided by a two-bank syndicate, with National Westminster Bank plc (“NatWest”) and UK Infrastructure Bank Limited (“UKIB”) contributing £60 million (US$73 million) each. The Facility will be used to fund the development and construction of Sheaf Energy Park, following which repayment will occur on a 10 year amortization profile upon the start of commercial operations.
Scott Poulter, Pacific Green’s CEO, commented: “Sheaf Energy Park represents one of the largest project-financed battery energy storage systems in the world. We are pleased to have NatWest’s and UKIB’s participation in the Facility, which is a strong confirmation of the robustness of the project.”
Jacob Lloyd, Head of Specialist Asset Finance at NatWest, added: “Pacific Green is one of the fastest growing independent renewable energy developers, and we are excited to support them with Sheaf Energy Park and future projects to come as they continue their growth in the renewable energy sector.”
John Flint, CEO of UKIB, added: “The rapid scale-up of renewables onto the grid means the UK needs more storage capacity, and we need it fast. Our support for Pacific Green and the Sheaf Energy Park project is a great example of how UKIB’s debt financing can help accelerate large storage projects to bring them online sooner, while also providing crucial market confidence in the sector.”