Constantine Energy Storage has landed a £180 million financing deal with a multi-national banking consortium for a 612MW battery energy storage system (BESS) portfolio.
The announcement was made by German energy transition bank Nord/LB, one of the banks in the funding consortium. Other financial institutes involved in this funding raise include Virgin Money, Société Générale, and EDC.
The nine-asset BESS portfolio is the biggest portfolio ever financed in Europe, according to Constantine, and all of the assets are located in England and Wales.
According to Nord/LB, seven of the nine assets are located on land adjacent to substations, making transmission connection an easier process. All nine assets will utilise 2.7-hour batteries, with the full portfolio having a total capacity of 612MW/1.652GWh. A statement from the financial consortium says that this is believed to enhance operational efficiencies.
“This groundbreaking BESS financing deal is a prime example of the pioneering renewable energy projects that we deliver at NORD/LB,” said Florian Hock, Senior Director at NORD/LB. “The BESS portfolio is the largest ever financed in Europe, and we’re thrilled to have worked alongside Constantine Energy Storage on this very important project that will significantly boost the UK’s energy storage capabilities.”
Solar Power Portal notes that £180 million is unlikely to cover the entire capex needed for 1.65GWh of BESS, so the remainder will presumably come from other financing sources.
Constantine Energy Storage has been making significant progress on its UK BESS portfolio in recent months. Last month, the company announced that it had appointed two firms to optimise five of its battery assets in the UK. Habitat Energy will optimise three transmission assets – Ocker Hill, near Birmingham, Whitegate, near Manchester, and Monk Fryston, near Leeds, all of which have a capacity of 57MW and will utilise 2.7-hour duration systems. These assets are expected to come online by the summer of this year.
Meanwhile EDF will provide route-to-market and optimisation services for two of Constantine Energy Storage’s assets. The two sites, Capenhurst in Cheshire and Legacy in North Wales, also each have 57MW capacity and 2.7-hour duration. EDF will use its Powershift optimisation platform across both assets, which the firm says will help to maximise revenue generation across ancillary services, wholesale trading and the balancing market.
Battery revenues in the UK have skyrocketed in the past year, as reported by our sister publication Current±. New data from market analyst Cornwall Insight has revealed that average BESS revenues have quadrupled in the past year, with half of this rise taking place since December 2024. Cornwall Insight attributed much of this rise to the introduction of the National Energy System Operator’s (NESO’s) new Quick Reserve frequency management service in November 2024.
