TLT has advised Santander UK on its £12m financing of a flagship 30MW battery storage project, operated by Still Waters Green Technology (SWGT).
The financing, which is delivered under Santander’s Environmental & Social Growth Fund structure delivers optimal leverage against both contracted and fully merchant revenue streams to maximise debt. It is the first project finance funding structure that has adopted a multi debt tranche approach to the tiered risk profile of the battery energy storage system revenue model.
SWGT acquired the right to develop the 30MW subsidy-free battery storage asset in Swindon in 2018, and subsequently completed the design and procurement required to construct the project.
The TLT team was led by banking partner Gary Roscoe, supported by partner Nick Shenken, associate Oliver Coad and trainee solicitor Alice Mete. The firm advised Santander UK on all funding aspects of the transaction.
Gary Roscoe, partner at TLT, says:
“We’re delighted to have supported Santander on another battery storage project, especially given the increasingly important role energy storage will play in balancing the UK energy system.
“Santander are continuing to take an innovative approach to the traditional project finance structure, providing much-needed funding to pioneering projects that support the growth of renewable energy sources.
“We have seen a continued interest from investors in clean energy, despite the challenges faced by many sectors this year, and we expect to see increasing interest in investment opportunities of this kind throughout 2021.”
Mark Cumbo, Director, Specialised & Project Finance at Santander UK, says:
“Santander is delighted to have closed this exciting project with SWGT. This agreement further demonstrates our ability to work with ambitious teams like that of SWGT to deliver complex and innovative funding solutions for projects that trade on a predominantly merchant basis.
“We are grateful once again to the team at TLT for their deep understanding of the clean energy sector and for their expert knowledge and support with commercial battery storage projects. The team’s diligent approach ensured a smooth process for everyone involved.”
TLT previously supported Santander on its multi-million pound debt funding into independent battery storage firm Zenobē Energy in 2019.