Solar energy developer Aukera Energy has secured a £135 million senior debt facility from two international banks to finance the growth of its UK solar portfolio.
The finance package comes courtesy of Deutsche Bank and Rabobank, and will be used to fund the construction of five UK solar projects with a combined capacity of 220MWp. All five projects secured Contracts for Difference (CfDs) in the autumn 2024 Allocation Round 6, and are all expected to be fully operational by the end of 2026.
Notably, one project will also feature a co-located battery energy storage system (BESS). The Benthead energy project, which is located in North Ayrshire, Scotland and is being co-developed by Locogen, will combine a 63MW solar PV power plant and a 30MW, 2-hr duration BESS. The development is expected to come online later this year.
Details of the remaining projects set to be financed by the debt facility had not been revealed as of the publication of this story, but Aukera has stated that they are spread across the UK from Kent to Ayrshire. The principal advisors for the transaction were Burges Salmon (borrower legal), Pinsent Masons (lender legal) and Evergy (lender technical).
Pascal Emsens and Catalin Breaban, Aukera’s co-founders, said that the transaction marks a significant milestone for the company. They added this finance package represents “the beginning of Aukera’s next stage of growth as our project pipeline starts to reach maturity in all four of our markets.”
Carol Kort, executive director of Rabobank Project Finance, stated the bank was “delighted” to support Aukera Energy’s growth, adding that the transaction highlights the bank’s strategy “build partnerships with clients that share our dedication to drive the shift towards a more sustainable future”. Danai Koutra, head of project finance, London, at Deutsche Bank, agreed, adding that the deal represents a strong example of Deutsche Bank’s “commitment to sustainable finance and providing complex structured solutions”.
Aukera’s ambitions
Aukera was founded in 2021, and currently has a development pipeline of 16GW of solar, wind, and battery storage projects across the UK, Germany, Italy and Romania.
Last October, Aukera Energy and Locogen were granted planning permission for a new solar PV power plant with co-located battery storage in Scotland. The Loch Fergus scheme, to be located near Ayr in South Ayrshire, Scotland, will feature a 45MW solar installation plus 40MW of co-located storage, and is expected to be operational 2026. The site will host around 100,000 solar cells, will allow sheep grazing to continue on the site, and will feed power directly into the nearby Ayr substation.
Rabobank has been involved in a number of other major solar financing deals in the UK in recent months and years. In February, Aura Power secured a £33.1 million finance package from Rabobank, which will be used to develop the 40MW Burtree Lane solar PV power plant. This deal was secured four months after Aura Power and Rabobank announced another finance package had been agreed, a £44 million debt facility to construct the 49.9MW Kemble Solar Farm.
