Slaughter and May advised UK Infrastructure Bank on its £60 million loan to support the development of a new 249 MW / 373.5 MWh electricity storage park in Kent

Slaughter and May advised UK Infrastructure Bank (UKIB) in relation to a £60 million loan to support Pacific Green in its development of a new 249 MW / 373.5 MWh electricity storage park in Kent. This was part of a £120 million debt package alongside NatWest to enable the construction of the short duration battery storage facility, providing a significant boost to grid stability and contributing to the UK’s energy security. The Sheaf Energy Park will be one of the largest standalone battery storage projects in the country when it is completed.

The investment strongly aligns with UKIB’s net zero mandate, helping to provide the energy storage necessary to support the rapid scale up of renewables. National Grid has forecast that up to 29 GW of storage could be needed by 2030 and up to 51 GW by 2050 – up from around 5 GW today. Short duration lithium-ion battery storage in particular is seen as a crucial component for the successful transition to clean energy by enabling the grid to respond quickly to peaks and troughs in electricity supply and demand throughout the day. UKIB’s recently published strategic update highlights short duration storage as a sector where its financing can play a key role in developing the nascent debt market.

This deal marks UKIB’s second debt investment in the battery storage market, following its £62.5 million commitment to Pulse Clean Energy in May, in addition to £200 million of investment into the Equitix UK Electricity Storage Fund and Gresham House Secure Income Renewable Energy & Storage LP (SIRES). Collectively, these investments potentially unlock a further £1.2 billion in private capital for the storage sector.

Slaughter and May worked with UKIB’s internal legal and business teams.