Constantine Energy Storage Lands £180 Million Financing for Landmark UK Battery Portfolio
[City, Date – March 24, 2025] – Constantine Energy Storage today announced a significant milestone in the UK’s energy transition with the securing of a £180 million financing deal from a multi-national banking consortium. The investment will fund a 612MW battery energy storage system (BESS) portfolio, marking the largest ever financed battery storage project in Europe.
The announcement was spearheaded by German energy transition bank Nord/LB, a key member of the funding consortium. Other prominent financial institutions participating in this crucial investment include Virgin Money, Société Générale, and EDC. This substantial funding underscores the growing confidence in the UK’s energy storage market and the vital role it plays in supporting the nation’s renewable energy ambitions.
“This groundbreaking BESS financing deal is a prime example of the pioneering renewable energy projects that we deliver at Nord/LB,” stated Florian Hock, Senior Director at Nord/LB. “The BESS portfolio is the largest ever financed in Europe, and we’re thrilled to have worked alongside Constantine Energy Storage on this very important project that will significantly boost the UK’s energy storage capabilities.”
A Portfolio Designed for Grid Stability
The nine-asset BESS portfolio is strategically located across England and Wales, designed to enhance grid stability and provide essential flexibility to the UK’s energy system. A key advantage of the project lies in the location of seven of the assets, which are situated on land adjacent to substations. This proximity significantly streamlines the transmission connection process, accelerating project deployment and minimizing potential delays.
Each asset within the portfolio will utilize advanced battery technology, providing a 2.7-hour duration. This duration is optimized to provide essential grid services, including frequency response, voltage support, and peak shaving. The combined capacity of the portfolio – 612MW/1.652GWh – represents a substantial contribution to the UK’s growing energy storage capacity.
Optimizing Performance with Leading Partners
Recognizing the importance of operational efficiency, Constantine Energy Storage has partnered with two leading firms to optimize the performance of its BESS assets. Habitat Energy will be responsible for optimizing three transmission assets: Ocker Hill, near Birmingham; Whitegate, near Manchester; and Monk Fryston, near Leeds. These assets, each boasting a capacity of 57MW, will leverage Habitat Energy’s expertise to maximize revenue generation and ensure reliable grid support.
Furthermore, EDF will provide crucial route-to-market and optimization services for two additional assets: Capenhurst in Cheshire and Legacy in North Wales. EDF’s Powershift optimization platform will be instrumental in maximizing revenue across ancillary services, wholesale trading, and the balancing market, ensuring the portfolio operates at peak efficiency.
A Booming UK Energy Storage Market
The financing announcement comes at a time of unprecedented growth in the UK energy storage market. Recent data from market analyst Cornwall Insight reveals that average BESS revenues have quadrupled in the past year, with half of this increase occurring since December 2024. This surge in revenue is largely attributed to the introduction of the National Energy System Operator’s (NESO’s) new Quick Reserve frequency management service, which provides a valuable revenue stream for battery storage assets.
“The UK’s energy storage market is rapidly maturing, and this investment demonstrates the confidence that financial institutions have in the sector,” commented a spokesperson for Constantine Energy Storage. “We are committed to playing a leading role in the energy transition, and this project represents a significant step towards a more sustainable and resilient energy system.”
Looking Ahead
While the £180 million financing represents a substantial investment, Constantine Energy Storage acknowledges that additional funding sources will be required to cover the full capital expenditure (capex) for the 1.65GWh BESS portfolio. The company is actively exploring further financing options to ensure the successful completion of the project.
The first assets within the portfolio are expected to come online by the summer of this year, contributing immediately to the UK’s energy security and supporting the integration of renewable energy sources. Constantine Energy Storage remains committed to expanding its portfolio and driving innovation in the energy storage sector.
