Independent energy producer (IPP) Econergy Group, through its UK arm, has successfully signed a financing agreement and route-to-market agreement with Goldman Sachs to support a battery energy storage project (BESS) in Yorkshire.
The Swangate BESS will have an installed capacity of 50MW/102MWh and is expected to be connected to the grid by the end of this year.
Goldman Sachs International Bank has provided financing of €32 million (£27 million). The loan structure supports both project development and operational needs, with approximately £25 million earmarked for construction costs and to repay existing shareholder loans.
Close to the first withdrawal date, a hedging agreement will be entered into to manage interest rate fluctuations. In addition, the route-to-market agreement includes trading and optimization of the project.
Econergy’s UK portfolio currently includes a total of 18 solar PV projects with a combined generation capacity of approximately 1.5 GW and 26 energy storage projects, including standalone and co-located, with a total capacity of approximately 6.8 GWh.
At the end of 2022, Econergy entered into its first engineering, procurement and construction (EPC) agreement for the Swangate Project. The EPC agreement has been concluded between Econergy, the British and Irish contractor G2 Energy and Trina Storage, a business unit of Trina Solar.
“Econergy Group remains committed to advancing sustainable energy solutions across Europe and invites strategic partners to explore further collaboration opportunities as we further develop our ambitious portfolio of projects,” said Eyal Podhorzer, CEO of Econergy.
“We look forward to continuing our successful partnerships and exploring new avenues of collaboration in the sustainable energy sector.”
Earlier this year, Econergy agreed to £128 million (€150 million) in debt financing from Rivage Investment to advance the former’s pipeline of European solar PV projects.
The financing will support continued development and construction in Econergy’s primary target markets for renewable energy: Italy, Poland, Great Britain and Romania. The investment came as Econergy also bought UBS’s stake in its co-developed Italian sustainable projects. This means that once fully operational, Econergy will take full ownership of approximately 440 MW of projects.
Podhorzer stated at the time that 2024 would be a “big year” for the company as it continues to grow and transform.
