UK battery storage developer, Eelpower Limited, has secured an agreement with Gravis Capital Management (“Gravis”) for debt funding which will be used to develop Eelpower’s pipeline of permitted storage sites and enable Eelpower to pursue new storage development opportunities in the UK.
The financing agreement with Eelpower is being made through the GCP Asset Backed Income Fund, an investment company advised by Gravis, which focusses on providing financing supported by physical assets and long-term cash flows. Gravis has extended a £20 million financing facility to aid Eelpower’s plans to build, own and operate a fleet of grid-connected batteries.
Mark Simon, Chief Executive of Eelpower: “The Gravis investment in Eelpower’s battery storage business underlines the scale and investment strength of our current portfolio, and the growth potential of Eelpower and indeed the battery storage market in the UK.”
Gravis’ decision to support Eelpower follows the November 2017 commissioning of Eelpower’s 10MW Leverton battery storage facility near Lincoln and the announcement last month (March 22nd 2018) that Eelpower had co-located battery units at two low-head river hydro schemes in Yorkshire that are owned and operated by its sister company, Barn Energy. It is the first time in the UK that battery storage has been deployed alongside a river hydro scheme.
The Leverton storage facility was Eelpower’s first storage project to be commissioned in the UK; the company secured a Firm Frequency Response contract from National Grid in October 2017 and had already entered into a fifteen-year T-4 Capacity Market contract starting in October 2020.
Philip Kent of Gravis said: “We are delighted to have completed the financing arrangement with Eelpower to enable the company to continue to develop its pipeline.”
Eelpower’s legal advisers were Reed Smith. Gravis were advised by their lawyers, Burges Salmon.