NatPower UK has announced a deal totalling up to £60m with Kommunalkredit, a leading European infrastructure bank, to help fund its 100GWh portfolio of battery energy projects including long duration energy storage (LDES).
The developer said it has the largest battery storage pipeline in the UK, including three 1GW GigaParks in North Yorkshire and Tees Valley.
NatPower UK’s GigaPark approach, alongside the infrastructure financing competence of Kommunalkredit, signals a step-change in how these large-scale projects can be funded, according to the developer.
Stefano Sommadossi, chief executive at NatPower UK, said: “The UK’s energy transition will provide huge opportunities for economic growth, generating tens of thousands of green jobs, creating sustainable communities and bringing down bills, and attracting a significant portion of the trillions that will be invested in the sector each year globally.
“With huge changes currently being made to the connections process, the UK’s energy grid will require an acceleration of private capital to ensure we can deliver the right projects as quickly as possible.
“Our agreement with KommunalKredit signals that this is well underway, showing confidence from the market not only in the opportunity the UK presents, but also in NatPower UK’s portfolio and strategy for delivery.
“We look forward to continuing to lead the charge, working with our investors and lending partners like KommunalKredit, our communities, and the sector, to bring our GigaParks through to operation, save the country billions in curtailment costs, and ultimately establish the UK as a clean energy powerhouse.”
David Prat, senior transactor at Kommunalkredit, said: “We see this as a landmark financing in the UK’s battery storage market and are excited to support NatPower.
“Their deep expertise, mission-driven approach, and fast execution have impressed us.
“As a leading European infrastructure bank with extensive energy transition experience, we at Kommunalkredit are proud to contribute to the UK’s clean energy goals.”