Two landmark financing deals for UK BESS total GBP 400 million

UK battery project developers have announced GBP 400 million ($438 million) in project financing in quick succession, as Constantine Energy Storage and Zenobe both close major deals.

Constantine Energy Storage has secured a GBP 180 million financing package for a 612 MW/1,652 MWh, nine-asset UK battery portfolio. The financing comes from a consortium that includes NORD/LB, Virgin Money, Société Générale, and EDC.

The BESS assets in the portfolio are located across England and Wales, with seven projects on land adjacent to substations.

North of the border, Zenobe has raised GBP 220 million in financing for a 400 MW/800 MWh standalone BESS project in Eccles, Scotland. The project has been backed by a group of lenders, arranged by National Westminster Bank Plc and KKR Capital Markets. Construction has now begun at the site, which is scheduled to go live in early 2027.

The Eccles funding is the final phase of a GBP 750 million investment in Scotland by Zenobe. On March 3, 2025, the developer’s Blackhillock BESS near Inverness was recently switched on at 200 MW/400 MWh capacity, and is expected to expand to 300 MW/600 MWh later in the year. It is the world’s first battery storage system to provide full active and reactive power.

Zenobe has also invested in a 300 MW/600 MWh Kilmarnock South project in southwest Scotland, which is set to go live in 2026. Other Scottish BESS in the developer’s portfolio include the operational 50 MW/100 MW battery in Wishaw, near Glasgow.

In a press release, Zenobe co-founder James Basden said the latest financing deal was proof the battery storage sector is “ready to deliver” on the level of private sector investment required to hit UK government clean power targets for 2030. However, he warned that this investment is “at risk” under current energy market conditions.

“Whilst the National Energy System Operator (NESO) has been engaging positively with the sector, we need to move faster. It is vital that NESO, Ofgem and the government work together to update Britain’s energy market to treat batteries fairly,” said Basden. “Without simple rule changes that reflect modern technology, future investments will dry up. A modernized approach will ensure that the entire BESS industry can continue to build and invest in Britain at speed.”

The way battery assets are deployed on Great Britain’s grid has been a longstanding concern of BESS project owners. The industry has argued batteries are underused in NESO’s Balancing Mechanism market, in a phenomenon known as skipping. The electricity system operator has been updating its technology and procedures to mitigate the issue, but the process is ongoing.