Pulse Clean Energy announced it has secured a £220 million green finance deal from a consortium of six international banks, marking one of the largest financings in the UK for battery storage infrastructure.
The green debt raise was structured in alignment with the Green Loan Principles of the Loan Market Association. Santander CIB served as Green Loan Coordinator, bringing together a diverse banking consortium, including Santander, NatWest, ABN AMRO, NORD/LB, Investec, and CIBC.
This green financing will facilitate the construction of six ready-to-build battery energy storage system (BESS) sites, including the conversion of existing diesel sites to BESS assets. It will also support the ongoing funding of nine sites already in operation or in late stage construction. These sites are strategically located across the UK in areas including Scotland, Devon, Greater Manchester, and Wales.
The six new BESS projects will collectively provide over 700MWh of capacity. During their operational life these projects will create over £200 million in gas and emissions savings for UK consumers. These savings are in addition to the benefits of enabling greater integration of wind and solar power, as the batteries provide the grid with the flexibility needed to accommodate variable renewable energy sources. This highlights the critical role these projects will play in reducing consumer energy bills by facilitating the use of low-cost renewables, decreasing reliance on imported gas, and strengthening the UK’s energy security.
The National Energy System Operator (NESO) forecasts the country will need at least 50GW of energy storage power capacity and just under 200GWh of capacity by 2050 – requiring four to five times current capacity by 2030 alone. Today’s financing positions Pulse Clean Energy to capture a material share of the expanding market.
This announcement represents a vote of confidence in the UK’s rapidly expanding storage sector. Pulse Clean Energy was previously backed by a consortium involving the National Wealth Fund (NWF) in May 2023 – representing NWF’s first debt transaction in battery storage and endorsing the company’s leading contributions to the sector. Now, as the market matures, strong interest from UK and European commercial banks has allowed the NWF to step back.
Pulse Clean Energy has established itself as a leading developer and operator of battery storage in the UK, with a planned operational capacity of over 2GWh by 2030.
Nicola Johnson, Chief Financial Officer of Pulse Clean Energy, said, “This investment reflects strong global confidence in the growing UK battery storage market and in Pulse Clean Energy’s ability to deliver at scale. These six facilities will not only strengthen grid resilience but also unlock significant cost savings for consumers by allowing more renewable power onto the grid and reducing the need for expensive backup power during peak periods.”
All battery energy storage systems financed by this deal are expected to be operational by the end of 2027.
Pulse Clean Energy was advised by Eversheds Sutherland as legal counsel, with Watson Farley & Williams acting as the lender’s legal counsel and Chatham Financial as hedging advisor. Timera provided market advisory, Everoze served as technical and ESG advisors, Operis supported as model auditor and tax advisor, and Willis Towers Watson advised on insurance.
