Sonnedix: Co-locating BESS to play “big, big role” in growth following €3.25 billion refinancing

London-headquartered renewable energy multinational Sonnedix has secured €3.25 billion through two refinancing transactions in Europe. It plans to use the proceeds from the two big transactions to grow its pipeline in Europe, which includes energy storage and hybrid projects.

Axel Thiemann, CEO of Sonnedix, told ESS News that BESS, particularly co-located BESS, will play a key role in the company’s future expansion strategy.

He warned, however, that co-locating BESS can be difficult due to regulatory barriers. He added many governments are rethinking their country’s regulations to add more storage capacity and hybrid renewable projects to their grids, which is promising for companies like Sonnedix.

“We have a little over a gigawatt of co-located BESS and that is increasing,” Thiemann explained, adding that co-locating BESS with solar is a particular focus for future growth.

Sonnedix is currently active in a lot of markets globally, including the UK, Italy, France, Spain, Portugal, Germany, Poland, Chile, US, and Japan. Across all renewables, it has a total global capacity of 11.3 GW, with a global project development pipeline of 6.6 GW, and a total global operational capacity of 3.7 GW. It has 983 MW under construction. These figures were last updated on the company’s website on Dec 16.

Its first refinancing transaction as part of the €3.25 billion pot was provided by Spain’s CaixaBank and was completed in November 2024. The €750 million sum refinanced Sonnedix’s regulated 197 MW asset portfolio in Spain, consolidating seven financings into one.

The second transaction, worth €2.5 billion, was completed a month later, and refinanced a 1.1 GW portfolio of renewable energy assets in Spain, Italy, and France with the ability to expand with new assets across Europe and the UK.

It was structured as a green and sustainability-linked loan and featured input from 15 commercial lenders and institutional investors. Crédit Agricole CIB and Santander CIB acted as co-financial advisors with A&O Shearman as legal advisor.

 According to Thiemann, the refinancings demonstrate the scale of Sonnedix’s growing asset portfolio in Europe as well as the market’s confidence in the company’s business model and ability to implement its pipeline over the long term.

“I’m particularly excited about the opportunities the transactions give us to deliver our power marketing and hybridization strategies that mark the next phase of growth for Sonnedix,” added Thiemann. “These financings ultimately position us to better address the evolving needs of our customers for clean, reliable, and affordable energy.”

Sonnedix’s Head of Project Finance in Europe, Daniel Machuca, said the refinancings optimize corporate structure, providing additional corporate liquidity and reduced risk.

Currently, Sonnedix’s biggest markets in terms of capacity are Italy and Spain. In Spain it recently surpassed 1 GW, and it announced the acquisition of a 42 MW ground mounted solar plant in Castilla-La Mancha in July 2024.

In Dec 2023 Sonnedix secured a €260 million green loan to finance the acquisition and construction of projects in Italy, where its capacity is more than 2 GW.