TLT has advised Santander on a landmark transaction signalling that the energy storage market is now ripe for debt funding.
The investment sees Santander provide a £28.5m facility to Battery Energy Storage Solutions Limited (BESS), an independent developer, operator and owner of battery storage units in the UK that aims to reach a 100MW portfolio by the end of 2018.
TLT provided Santander with end to end support and advice, including advising on the terms and structure of the debt finance. The team involved banking and finance partner Gary Roscoe and solicitor Emily Huish.
Santander Corporate & Commercial's director of infrastructure & renewable energy Mark Cumbo, who led the deal team, comments: “We are delighted to have closed this landmark transaction with a new client in a new niche market segment.
"Given that this was a new area for us, we were extremely grateful to TLT for their specialist knowledge and deep understanding of the sector as well as the practicalities of our investment. The team worked tirelessly to ensure a smooth process for everyone involved."
Gary Roscoe, partner at TLT, comments: "Energy storage is playing an increasingly important role in the UK energy system – from balancing grid demand to co-locating with a renewable energy source like solar or wind power. It is becoming an increasingly attractive investment for equity and debt funders alike, and it is tremendously exciting to see Santander providing a debt solution for BESS's ambitious plans.
"This really is a vote of confidence for energy storage and we expect to see more debt funding opportunities open up over the coming year."
In November 2017, TLT launched an updated report detailing the biggest trends and outlook for the UK energy storage market in partnership with Regen, called Energy Storage: The Next Wave. To download a free copy, please click here