NatPower UK has entered into a financing agreement worth up to £60 million with Kommunalkredit, a prominent European infrastructure bank, to support its portfolio of battery energy storage projects, including long-duration energy storage (LDES). The portfolio is expected to provide up to 100 GWh of energy capacity.
The agreement supports NatPower UK's extensive battery storage pipeline, which the developer claims is the largest in the UK. It includes three 1GW GigaParks in North Yorkshire and Tees Valley. According to NatPower UK, the GigaPark model, combined with Kommunalkredit's infrastructure financing expertise, marks a significant shift in funding large-scale energy storage projects.
Stefano Sommadossi, chief executive of NatPower UK, stated: “The UK's energy transition will provide huge opportunities for economic growth, generating tens of thousands of green jobs, creating sustainable communities and bringing down bills, and attracting a significant portion of the trillions that will be invested in the sector each year globally. With huge changes currently being made to the connections process, the UK's energy grid will require an acceleration of private capital to ensure we can deliver the right projects as quickly as possible.”
Sommadossi also highlighted the significance of the agreement, adding: “Our agreement with KommunalKredit signals that this is well underway, showing confidence from the market not only in the opportunity the UK presents, but also in NatPower UK's portfolio and strategy for delivery.”
David Prat, senior transactor at Kommunalkredit, expressed enthusiasm about the deal: “We see this as a landmark financing in the UK's battery storage market and are excited to support NatPower. Their deep expertise, mission-driven approach, and fast execution have impressed us. As a leading European infrastructure bank with extensive energy transition experience, we at Kommunalkredit are proud to contribute to the UK's clean energy goals.”
The partnership is seen as a key step in accelerating the UK's transition to cleaner energy, with both companies emphasizing the potential for large-scale energy storage solutions to address grid management challenges and contribute to the nation's clean energy future.
