Econergy reaches financial close on Dalmarnock BESS

Econergy Renewable Energy has achieved financial close on its 40 MW/120 MWh Dalmarnock BESS project in Scotland, securing £21 million in project finance from Santander UK and a long-term optimization agreement with EDF. This milestone marks a significant step for Econergy in commercializing its broader UK pipeline of battery storage projects, which totals nearly 3 GW across 17 projects. The deal structure, incorporating both project finance and a guaranteed minimum income level through the EDF agreement, demonstrates a de-risked approach to BESS development, likely making the project more attractive to investors and lenders. The involvement of established players like Santander UK and EDF underscores the increasing maturity and bankability of the BESS sector. Santander's provision of project finance signals confidence in the project's viability and the overall market for energy storage. EDF's long-term optimization agreement provides revenue certainty, a critical factor for securing financing and ensuring project profitability. This deal serves as a template for future BESS projects in the UK, demonstrating a viable financing and operational model. The successful financial close paves the way for Econergy to further develop its extensive UK BESS portfolio, contributing to the country's energy transition goals.